The Mental Models Daily Podcast

Margin of Safety


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Margin of safety is a concept used in various fields, including engineering, investing, and risk management. It refers to the degree of safety or cushion between the actual value or performance of a system and its failure threshold or desired outcome. A higher margin of safety indicates greater resilience to adverse conditions or uncertainties.


Smart decisions leave room for error. The Margin of Safety protects against uncertainty, ensuring you're prepared for worst-case scenarios. 🛡️📈

#MarginOfSafety #RiskManagement #MentalModels #Investing #DecisionMaking
#SafetyNet #Preparedness


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The Mental Models Daily PodcastBy Mental Models Daily

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