US Economic News

[EnSabahNur]

"Some of these companies who are impacted, may have excellent franchises and durable business models that actually come back stronger in future. And since I have the ability to wait out the turmoil, so that's where I will focus instead."

I agree with this. I think the risk here is catching a falling knife, which if we think we buy with a good margin of safety, that is fine

I guess what I am trying to say is that, what we used to assume, is probably suspect now.

The price we pay to own the asset, does not determine our MOS. Rather it is the underlying quality of the asset - a company with good business economics, strong balance sheets, durable moats, fairness of controlling shareholder etc that determines our MOS. It may also come from companies which are undergoing some transition (and eventually succeed). The price we pay to own the asset, determines our future returns.

I think what you are describing here are the moats rather than MOS

From Investopedia
https://www.investopedia.com/terms/m/marginofsafety.asp

What Is Margin of Safety?
The margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. In other words, when the market price of a security is significantly below your estimation of its intrinsic value, the difference is the margin of safety.