--- title: "Meaning & Key Takeaway of: The margin of safety is always dependent…" description: "\"The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still highe..." image: "https://sms4smile.com/quotes/i/87b/benjamin-graham-1531_customer_the-margin-of-safety-is-always-dependent_785981.jpg" --- # The margin of safety is always dependent on the price… ![“The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.” quote by Benjamin Graham](https://sms4smile.com/quotes/i/87b/benjamin-graham-1531_customer_the-margin-of-safety-is-always-dependent_785981.jpg) [Download](https://sms4smile.com/quotes/i/87b/benjamin-graham-1531_customer_the-margin-of-safety-is-always-dependent_785981.jpg) [Open image](https://sms4smile.com/quotes/i/87b/benjamin-graham-1531_customer_the-margin-of-safety-is-always-dependent_785981.jpg) > “The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price.” [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Margin of safety varies with purchase price; lower prices give larger safety buffers, higher prices reduce or eliminate it. **In simple terms:** Safety depends on price; lower price = larger safety. Key Takeaway Buy low, avoid overpaying. Themes investment risk management valuation financial discipline value investing Mood cautious analytical pragmatic Type advice financial educational When to use this quote - stock purchasing - real estate buying - business acquisitions - portfolio construction Key Concepts margin of safety price sensitivity risk-reward tradeoff Questions to Reflect On - How do you determine an appropriate price threshold? - What factors could mislead your safety assessment? A Different Perspective If market sentiment drives price up, safety may vanish despite analysis. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Investing](https://sms4smile.com/quotes/about/investing/) [Miscalculations](https://sms4smile.com/quotes/about/miscalculations/) [Safety](https://sms4smile.com/quotes/about/safety/) ## Related quotes > [Edge also implies what Ben Graham…called a margin of safety. 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