A margin of safety using liquidation value means buying a stock for less than what you'd recover if the business shut down today. For example, a stock trading at $100 with tangible assets worth $200 per share — discounted by 50–70% — gives you a liquidation value of $60–$100. That means limited downside, even in a worst-case scenario. It’s not exciting, but it’s how disciplined investors preserve capital and build long-term wealth.
