A margin of safety is essential in investing, where you want every euro you spend to be worth more than what you pay for it. This can be determined both quantitatively and qualitatively.

The quantitative approach involves searching for bargains and stocks with significant undervaluation.

The qualitative approach focuses on investing in the strongest companies in the world, where the intrinsic value is constantly growing. Even if you initially overpay and lack a quantitative margin of safety, the quality of the company and the growth of its intrinsic value can save you in the long run.