The core content of measuring risk includes five items: calculating the margin of safety, refusing to trade with individuals of questionable moral character, insisting on appropriate compensation for predetermined risk requirements, being vigilant about the risks of inflation and Intrerest Rate, and avoiding continuous loss of principal.

1. Calculate the margin of safety:
Core content: This is the cornerstone of value investing. It requires that when you purchase an asset (such as stocks, bonds, or businesses), the price you pay must be significantly lower than your conservative estimate of the asset's intrinsic value. This difference is known as the "margin of safety."
Why it is core: The margin of safety is a buffer against future uncertainties (such as forecasting errors, unexpected events, economic downturns, and industry changes). It provides the first line of defense; even if your judgment is partially wrong or the market experiences a short-term irrational decline, you are less likely to suffer permanent capital loss and may even achieve excess returns. It directly reduces the risk of "buying at a high price." #成长值抽奖，赢 iPhone 16 和精美周边 #稳定币支付量达942亿美元 #特朗普关税进展