margin of safety

• Der Abstand zwischen dem tatsächlichen Wert oder der Belastbarkeit eines Systems und dem Grenzwert, bei dem ein gefährlicher oder schädlicher Zustand eintritt; in der Finanzwelt die Differenz zwischen dem inneren Wert einer Anlage und ihrem Marktpreis, die als Puffer gegen Fehleinschätzungen oder Risiken dient.

A concept referring to the difference between the intrinsic value of an asset and its market price, or the buffer or extra capacity allowed to account for uncertainty, risk, or error in various fields such as investing, engineering, or safety management.

1. Financial risk bufferC1formal

   The difference between the intrinsic value of an asset and its market price, used to minimize investment risk.

   Sicherheitsmarge

   • Value investors always look for a large margin of safety before buying stocks.
   • He calculated the margin of safety to ensure the investment was secure.
   • A margin of safety protects against unexpected market downturns.

2. Engineering safety limitC1formal

   The capacity of a system or structure to withstand loads beyond expected maximum conditions.

   Sicherheitsreserve

   • The bridge was designed with a high margin of safety to handle extreme weather.
   • Engineers must ensure a sufficient margin of safety in all load-bearing structures.
   • The margin of safety in the aircraft's design prevents catastrophic failure.