melvincarvalho on Nostr: The most important thing you can learn in investing is called the "margin of safety". ...

The most important thing you can learn in investing is called the "margin of safety". When you invest in something, sometimes you will have an edge. But there is always risk. The margin of safety is when your edge is greater than your risk. This is the simple technique that made Warren Buffett the richest man in the world. When your edge is smaller than your margin of safety you are gambling, and will eventually fail. When your investment beats the margin of safety you are on to a winner. That is exactly what Saylor is doing. It's pure genius. What's more he stated this strategy from the start and it has played out exactly as he said. So, if he took on TOO MUCH leverage there would be a problem because he's outside his margin of safety. That's the tight rope you have to walk if you are MSTR CEO and also if you invest in them. There's a little bit more around bit sizing, but that essentially is the name of the game in investing.