Margin of Safety Investing

• Look for investments with low downside risk, even if they don't have high upside potential.
• Find companies with a margin of safety, meaning their price is low enough that they won't go down much even if they don't appreciate.
• Pfizer is an example of such a company, currently offering a 5% dividend with limited downside.
• Algonquin, a regulated utility recently restructured by private equity, is another example. It's expected to double or triple in value over the next five years due to increased earnings and a conservative price-to-earnings ratio.