---
title: "Top Margin of Safety Picks"
url: https://efsinvestment.com/index.php/top-margin-of-safety-picks
description: "Benjamin Graham, known as the father of value investment, is prominent investor as well as an academician. He uses back-testing models to verify his conclusions on his."
published: 2026-08-10
updated: 2026-08-10
---

# Top Margin of Safety Picks

Published 2026-08-10

Written by Dr. Econ · Saturday, 02 July 2011 11:27

Benjamin Graham, known as the father of value investment, is prominent investor as well as an academician. He uses back-testing models to verify his conclusions on his formulas. Graham is a value investor and he has published several books on value investment. He is also known for simple estimation rules for the fair value of a company. His investment decision is based on margin of safety concept.

His formula for estimating margin of safety is based on the following:

Long-Term Valuation (LTV) = Earnings Per Share x (8.5 + 2 x Estimated Long-Term Earnings Growth) x (4.4 / Corporate Bond Yield)

One can calculate the margin of safety as the percentage difference between Long-Term Valuation and current price of a stock:

Margin of Safety = (LTV - Price) / LTV

Buffet suggests a minimum of 30% margin of safety. Note that margin of safety is a very dynamic concept. As stock prices move up and down, both long-term valuations and margin of safety change. From time to time, I look at the stocks with nifty margin of safety. Here, is a list of articles on margin of safety:

[Top Dow Jones Stocks With Highest Margin of Safety](https://seekingalpha.com/article/290480-top-dow-jones-stocks-with-highest-margin-of-safety) August 29, 2011

[33 Telecommunication Stocks With the Highest Margins of Safety](https://seekingalpha.com/article/259170-33-telecommunication-stocks-with-the-highest-margins-of-safety) (March 21, 2011)

[27 Energy Stocks Benjamin Graham Would Like](https://seekingalpha.com/article/257949-27-energy-stocks-benjamin-graham-would-like) (March 13, 2011)

[Benjamin Graham's Perspective on the Dow Jones](https://seekingalpha.com/article/257552-benjamin-graham-s-perspective-on-the-dow-jones) (March 10, 2011)

Last Updated on Friday, 02 September 2011 18:09