Margin of Safety - How Important Is It in Investing?

Margin of Safety (MoS) is the only thing which i hold and am trying to hold firmly when selecting a company to invest in:

(1) MoS is the difference between the Intrinsic Value of a Stock and its Market Price.

(2) Could be used to prevent the Market Price for much volatility (even though we are not able to predict the movement of the market from time to time).

(3) Cash, Operating Cash Flow, Free Cash Flow, Current Ratio, Debt to Equity Ratio, GP Margin, NP Margin, The Consistency of Revenue & Profit QoQ & YoY - are used as a Quantitative Metric in my selection of stock.

(4) Future Plan of the business (short & long term), Vision & Mission, Business Strategy, Management Team - are used as a Qualitative Metric.

Portfolio Value as per February 2018

	No.	Counters	No of Shares	Market Price       per Share             (SGD)	Total Value (SGD)
	1	800 Super	20,000	$1.190	$23,800.00
	2	AEM	12,000	$5.500	$66,000.00
	3	Avi-Tech	100,000	$0.500	$50,000.00
	4	Best World	50,000	$1.360	$68,000.00
	5	Ellipsiz	30,000	$0.790	$23,700.00
	6	Frencken	75,000	$0.660	$49,500.00
	7	Innotek	130,000	$0.430	$55,900.00
	8	Sunning dale	50,000	$1.990	$99,500.00
	9	Trek 2000 Intl	100,000	$0.260	$26,000.00
	10	Cash			$134.18
				TOTAL:	$462,534.18

I made some changes to my holding:

(1) Sold 25,000 shares of Frencken.

(2) Sold 10,000 shares of Trek 2000 Intl.

(3) Add another 2,000 shares of AEM @$4.29/share: i think with recent announcement of their Revenue & Profit guidances & acquisition of Ofore Oy, AEM still has potential to grow more. Looking forward their FY report end of this month.

(4) Add another 50,000 shares of Innotek @42.50cts/share: they expansion to Weihai factory to support Hewlett-Packard production in China could be one of the catalysts for Innotek to move better in the near future. Trading below their NTA, with a cash pile of about 47,3mil (cash + investment held by bank), i am quite confident this will give me some margin of safety.



* Above are just my thoughts. The accuracy or completeness of the information above cannot be guaranteed.