Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor
Published by HarperCollins
Looking for a book called 'Margin of Safety' written by Seth Klarman??? Hi, i'm looking for a book of Seth Klarman called 'Margin of Safety', a book that costs around 2,000 USD. Can't find it anywhere. I may have a copy scanned as a pdf file somewhere. EDIT: I checked. It's only a partial scan/excerpts.
ISBN 10: 0887305105ISBN 13: 9780887305108
Seth klarman margin of safety pdf download? Seth Klarman Net Worth is $350 Million. Seth Klarman is Investor. Seth Klarman Nationality is United States of America. Seth Klarman Date of Birth is May 21, 1957. Seth Klarman Place of Birth is New York City. Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. In other words, when the market.
Quantity Available: 2
From: Salish Sea Books(Bellingham, WA, U.S.A.)
Add to BasketAbout this Item: HarperCollins. Hardcover. Condition: Good. 0887305105 ** First Printing **; Good in a Very Good Minus dust jacket; Hardcover; Dust jacket has minor edge-scuffing, otherwise is clean and intact with no tears, and has not been price-clipped (Now fitted with a new, Brodart jacket protector); Very light wear to the boards, the only flaw being minor bowing to the back board; Unblemished textblock edges; Highlighting to about 20 pages, otherwise pages are all clean and unmarked; The binding is excellent with a straight spine; We have been buying and selling this title for over 12 years, and we guarantee the authenticity of this book; This book will be stored and delivered in a sturdy cardboard box with foam padding; Medium Format (8.5' - 9.75' tall); Silver & white jacket with title in blue lettering over blue cloth and paper-covered boards; 1991, Harper-Collins Publishing; 239 pages; 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor,' by Seth A. Klarman. Seller Inventory # SKU-V06JA05807029
More information about this seller | Contact this seller1.
Related Articles
- 1 Margin of Safety vs. Profit
- 2 Cost-Volume-Profit Relationship & Break Even Analysis
- 3 Calculate the Total Operating Costs & Breakeven Volume
- 4 Know if a Company Is a Worthwhile Investment
Do you know the break-even sales point for your business? You should. It's a crucial target to reach, the point after which you start making a profit. You should be putting all your efforts toward reaching and exceeding this objective.
But what about a margin of safety? This is another target benchmark – unless you enjoy living on the edge. Having a reasonable margin of safety is essential to survive the vagaries of the marketplace and be able to try new strategies.
What Is Breakeven?
Breakeven is the volume of sales that exactly equals total costs of production. It can be expressed in sales volume or units of sales.
It consists of a company's fixed costs of operation such as rent, utilities, office salaries and insurance plus the variable cost of production, direct labor and materials expenses. The formula to calculate break-even sales volume is:
Fixed Costs ÷ Contribution profit margin percent = Break-even sales volume
Take the example of the Hasty Rabbit Corporation, a manufacturer of sneakers for rabbits. Their best-selling model is the Blazing Hare, which sells at a retail price of $95 per pair. Following are the relevant figures to calculate the break-even point:
- Fixed costs of operations: $300,000
- Retail sales price: $95 per pair of sneakers
- Variable unit cost of production: $57
- Contribution profit margin per pair: $38
- Contribution profit percentage: 40 percent
The break-even revenue for sales of the Blazing Hare is:
$300,000 ÷ 40 percent = $750,000 break-even sales volume
Breakeven in terms of units is:
$750,000 ÷ $95 = 7,895 pairs of sneakers
What Is the Margin of Safety?
The margin of safety is the amount that sales can drop before reaching the break-even point and incurring a loss of profits. It can be calculated in terms of a percentage, a decline in units sold or a drop in sales volume. The formula for determining the margin of safety as a percentage is as follows:
Margin of safety percentage = (Projected sales volume - Breakeven sales) ÷ Projected sales × 100
Using Hasty Rabbit again, suppose the company has a current sales volume of $850,000. What is its margin of safety?
($850,000-$750,000) ÷ $750,000 × 100 = 13.3 percent margin of safety
This means that sales could decline by 13.3 percent before reaching breakeven.
How to Use the Margin of Safety
Knowing your margin of safety gives a perspective on the effects of any changes that you want to make. For example, what if you wanted to increase prices in an attempt to improve profits and lower the break-even point? This could be a good idea unless the market reacts negatively and stops buying your products.
The margin of safety gives you some idea of how much sales loss you could bear before changing back to lower prices. If your margin of safety is small, raising prices is probably a bad idea because you have little room for error.
The margin of safety is an important metric to track in addition to monitoring the break-even point. Having a comfortable margin of safety gives a small-business owner the freedom and flexibility to try out different strategies and the ability to weather attacks from competitors.
References (4)
About the Author
James Woodruff has been a management consultant to more than 1,000 small businesses. As a senior management consultant and owner, he used his technical expertise to conduct an analysis of a company's operational, financial and business management issues. James has been writing business and finance related topics for work.chron, bizfluent.com, smallbusiness.chron.com and e-commerce websites since 2007. He graduated from Georgia Tech with a Bachelor of Mechanical Engineering and received an MBA from Columbia University.
Margin Of Safety
Cite this Article
Choose Citation Style
Colored Scanned Copy
Margin Of Safety Pdf
댓글