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Investment margin of safety review
Paste your value range, asset floor and the price. Get whether there is a real margin of safety and what removes it.
Investment margin of safety review is a free AI skill for the job "Handle money and investing". Give the instructions to an AI assistant that supports the required files and tools, then review its output.
Free · No account · Made by AI Blocks · Level: advanced · Thinking: high
What it does
You will never know a company's exact value. You do not need to. You need to know whether the price is clearly under the value, clearly over it, or lost in the fog between. A price inside the range means the answer depends on one estimate being right. That is a bet, not a margin of safety. This skill joins your two value views into one range and states how wide it is. It places the price against the edges, measures the margin against that width and asks why the market might be wrong. Prices are low because of exaggeration, oversimplification or neglect, and also because a business is getting worse. It tests which one fits. It names the events that could close the gap, warns that closing can be slow and asks how a group of similar cases would do. It is a method, not financial advice.
You give it
- The value range from "Earnings value range builder"
- The asset floor from "Asset floor estimator"
- The price
- A first label from "Investment or speculation sorter" (optional)
You get
- One range of approximate value with its width
- Where the price falls against it
- The margin compared with the uncertainty
- A likely cause of the gap, tested against decline
- What could close the gap, how slowly, and the downside
- A verdict with ranked reasons and what would change it
Use it when
- You have a value estimate and a price and want a verdict you can defend.
- A price looks cheap and you want to know whether the cause is neglect or decline.
- You want to write down your reasons before you commit money.
How to use it
- Start a chat with the skill. Open it if you added it to your AI, or copy it and paste it in.
- Paste the value range, the asset floor and the price.
- Say if any borrowing is involved.
- Read the placement of the price and the cause of the gap first.
- Write down what would change your mind before you decide anything.
Workflows that use it
- Find bargain stocks with a screen and a group test
- Value a business and the discount to ask for
- Value a stock with a margin of safety