An investor establishes a strict margin of safety by purchasing shares only when the market capitalization is less than 23two-thirds of the calculated NCAV. 4. Qualitative Analysis: Assessing the "Moat"
Value Investing: Tools and Techniques for Intelligent Investment An investor establishes a strict margin of safety
– A qualitative scoring system to assess whether a company’s competitive advantage (brand, network effects, patents, cost structure) will survive the next 20 years. Companies that score below 4/10 are discarded, no matter how cheap. no matter how cheap.