Buying a House in League City, Texas. When buying a house, especially for the first time, there are a lot questions that need answers. Consumers searching homes for sale in Texas can reach out to the Homes.com community of real estate agents and professionals for answers.
Loading the player... Margin of safety is a principle of investing in which an investor only purchases securities when the market price is significantly below its intrinsic value. In other words, when market price is significantly below your estimation of the intrinsic value, the difference is the margin of safety.
Margin of Safety = [Failure Load /(Design Load*FoS)] - 1. I don't think this is correct because FoS seems to be the same as Design Factor in this article and would cancel out the other terms in the equation. Overall, I find the distinction between FoS and Design Factor confusing in this article.