This week Michael is talking about the Margin of Safety, following a very heated back-half of calendar 2016 in the small and mid-cap segments of the market.
When we look at the Margin of Safety we look at not paying too much for a business.
We do this by looking at these areas:
- Balance Sheet - assets and liabilities
- P&L - revenue and profits (multiples)
- Business Stability - what is affecting the long-term continuity of the business and it's profits?