"An interesting way to approach a margin of safety is to do it in stages. **Let’s say you start buying a stock with a small part of your portfolio when the margin of safety is 20%. In case it becomes 40% you buy a larger part, if it goes to 60% you buy an even larger part.** In this way, if you invest just 1% of your portfolio when the margin of safety is 20%, you get sufficient time to learn about the company and determine whether the value is real or there are some hidden risks." ([Location 2966](https://readwise.io/to_kindle?action=open&asin=B07CNFFJ9J&location=2966)) --- **Tags** -- [[quotes]], [[value-investing]], [[margin-of-safety]], [[dollar-cost-averaging]] **Source** -- [[202506221723 - LN - Modern Value Investing]]