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Margin of Safety and Contrarian Investing for Long-Term Returns
Owning a business generationally and earning high returns requires a large margin of safety in investments. Such opportunities often arise during times of uncertainty, such as company-specific issues, industry disruptions, economic crises, or global events like pandemics. Value investors can capitalize on these situations, providing liquidity to force sellers and being greedy when others are fearful. The goal is to become the final owner of a healthy business by buying it at a discounted price, which entails being contrarian and global in investment decisions.