From Buy Like Buffett:
Value investors like Benjamin Graham and David Dodd invented the phrase "margin of safety." Those value investing masters classified a stock's margin of safety as the difference between a stock's market price and its true value.
Value investors like Warren Buffett love to buy stocks that are selling at a discount to their true value. This is number nine on our list of the 10 Things To Look For When Buying A Stock.
How do you find a stock's true value?
A stock's true value is based on a number of factors including current earnings, cash flows, earnings potential, P/E ratio, and...
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More on value investing:
Three methods for finding some of the world's best value stocks
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