Best Books of the Month Shop Costumes Learn more nav_sap_SWP_6M_fly_beacon Joe Bonamassa All-New Fire TV Stick with Voice Remote Grocery Introducing Handmade New Kitchen Scale from AmazonBasics Amazon Gift Card Offer hog hog hog  Amazon Echo Starting at $49.99 Kindle Voyage  McCartney Shop Now Learn more

Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.

  • Apple
  • Android
  • Windows Phone
  • Android

To get the free app, enter your email address or mobile phone number.

Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor 1st Edition

40 customer reviews
ISBN-13: 978-0887305108
ISBN-10: 0887305105
Why is ISBN important?
This bar-code number lets you verify that you're getting exactly the right version or edition of a book. The 13-digit and 10-digit formats both work.
Scan an ISBN with your phone
Use the Amazon App to scan ISBNs and compare prices.
Sell yours for a Gift Card
We'll buy it for $13.85
Learn More
Trade in now
Have one to sell? Sell on Amazon
More Buying Choices
6 New from $1,499.97 13 Used from $1,083.34
Free Two-Day Shipping for College Students with Amazon Student Free%20Two-Day%20Shipping%20for%20College%20Students%20with%20Amazon%20Student

Save up to 80% on Textbook Rentals Rent Textbooks

Editorial Reviews

Investors are all too often lured by the prospect of instant millions and fall prey to the many fads of Wall Street. The myriad approaches they adopt offer little or no real prospect for long-term success and invariably run the risk of considerable economic loss - they resemble speculation or outright gambling, not a coherent investment program. But value investing - the strategy of investing in securities trading at an appreciable discount from underlying value - has a long history - has a long history of delivering excellent investment results with limited downside risk.

Taking its title from Benjamin Graham's often-repeated admonition to invest always with a margin of safety, Klarman's 'Margin of Safety' explains the philosophy of value investing, and perhaps more importantly, the logic behind it, demonstrating why it succeeds while other approaches fail. The blueprint that Klarman offers, if carefully followed, offers the investor the strong possibility of investment success with limited risk.

'Margin of Safety' shows you not just how to invest but how to think deeply about investing - to understand the rationale behind the rules to appreciate why they work when they work, and why they don't when they don't.


Best Books of the Month
Best Books of the Month
Want to know our Editors' picks for the best books of the month? Browse Best Books of the Month, featuring our favorite new books in more than a dozen categories.

Product Details

  • Hardcover: 249 pages
  • Publisher: HarperCollins; 1st edition (October 1991)
  • Language: English
  • ISBN-10: 0887305105
  • ISBN-13: 978-0887305108
  • Product Dimensions: 1 x 6.8 x 9.8 inches
  • Shipping Weight: 1.2 pounds
  • Average Customer Review: 3.8 out of 5 stars  See all reviews (40 customer reviews)
  • Amazon Best Sellers Rank: #208,089 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

191 of 196 people found the following review helpful By Vasiliy Zhulin on July 25, 2007
Format: Hardcover
This book is one of the hardest finance books to track down today. Published in 1991, it is now out of print, and sells on Amazon and Ebay for over $1000. It is even one of the most-stolen library books, making it very difficult to find a copy to read.

Seth Klarman, the portfolio manager of The Baupost Group, is a very successful practitioner of the value investing strategy. In this book, he sets out to educate the reader on this concept, stressing the advantages of a risk-averse approach. In his introduction, Klarman states that even if this book, as a side effect of educating more people to invest in a more sophisticated manner, causes diminished returns to himself - he considers it well worth it for the public good. While I highly applaud this mentality, it begs the question: why was the book not published again? Considering what I mentioned in the first paragraph, clearly there is significant demand to read it. Anyway, on to the book itself...

"Margin of Safety" is divided into three portions. The first part discusses where most investors make mistakes and stumble - it covers investing vs. speculation, the nature of Wall Street, and how institutional investing results in a short-term performance derby (of which the client is ultimately the loser). It also encapsulates the presented information in a thoughful case study of junk bonds in the 1980s. The second portion of the book introduces the details of the value-investment philosophy, primarily focusing on risk and how it is crucial to invest with a margin of safety. The last part provides useful applicable advice on actually following the value-investment process: where to find investment opportunities, how to invest in these opportunities, and various aspects of overall portfolio management.
Read more ›
6 Comments Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
128 of 155 people found the following review helpful By Alex Maione on August 14, 2007
Format: Hardcover
When I first heard about this book, being a novice yet avid investor, I was very enthusiastic to get my hands on it. My friends and I went on a scavenger hunt to every public and university library that might have had it. When we finally found it, we were definitely excited because we thought, "Why would this book be valued so highly, if it didn't have very good insights on how to beat the market and gain above average returns?"
Needless to say it was an average book on value investing. And I stress average. If you're going to spend anything over $100 for this book, don't. If you still need to read it, get it from a library, but you'll still see that it probably wasn't worth it. All the clout that this book gets from being so pricey doesn't merit either trying to find it, or paying the price.
That being said, the author didn't have enough real life examples. He talked about a few companies that he realized significant gains on, but the intricacy of how he did it is not really discussed at length like Peter Lynch does in his books.
All in all, don't waste your money, and read one of the more popular Lynch or Graham books on value investing which are better written and more detailed.
19 Comments Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
24 of 27 people found the following review helpful By Name on March 29, 2008
Format: Hardcover
First, let me say that I've only actually seen a physical copy of this book once. I did have an opportunity to read it when a stained, paper-clipped pile of 15th or 20th generation photocopied pages comprising the entire book made the rounds at my office. Since that time, a PDF has circulated online and now, the content is freely available, effectively quashing any 'utilitarian' arguments for buying it.

The content is impressive, somewhat unique and very incisive, however, I think that in the year 2008, with copies of this book selling for $1500+, Margin Of Safety is now only 50% "book" with the remaining 50% being folklore and mythology. Owning a physical copy of MOS has become like a $25,000 wristwatch for value investors. It isn't about telling time... It's about how much you spent and showing the world what you have... and yes, you will find that the "value investors" who spent four figures for a copy of this book will defend their prize purchase to their dying breaths.

That Klarman has never ordered a reprint of this book tells us that he probably regrets having published it in the first place, not because it's a bad book but quite to the contrary, because it's a very good book that outlines much of his game plan; the profitability of which is greater the fewer competitors he has practicing it along with him.

Having finally "proven" everything he wrote in MOS with the Buffett'esque performance of his Baupost Group, I would wager that if he could go back in time and 'unpublish' this book, he probably would.

Still, would I ever pay this kind of money for a copy?
Heck no. Of course, I won't buy a $10,000 wristwatch, either.
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
35 of 41 people found the following review helpful By hardcore on June 3, 2013
Format: Hardcover
If you want to invest like Seth but can't afford his book, just look up Baupost's 13F on website. It's free and lists all of his latest holdings from the previous qtr. You can do this with other famous investors too such as Bruce Berkowitz's Fairholme Fund or Mohnish Pabrai's Pabrai Investment Fund. The 13F filing form is a very important tool for investing. I still would not just invest in any of their stocks without further researching them but it is a great start.

Whalewisdom is another website where you can get a more user friendly 13F forms to review.
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again

Most Recent Customer Reviews

Want to discover more products? Check out these pages to see more: margin safety, buffett beyond value