A long time practitioner of the Margin of Safety Concept, Buffett compares this idea to building a bridge across a river. When you build a bridge you make it strong enough to bear the load of a 30-tonne truck. This is despite being aware of the fact that currently the maximum load will be 10 tonnes per truck. That is what margin of safety is all about. It keeps a cushion while investing since investing is always done with imperfect information and an incomplete understanding of the impacting factors. As Buffet himself says, it is impossible to get it all right when you are talking about the future. That is where the concept of margin of safety comes in handy. Essentially, a higher margin of safety makes your investment strategy as risk-proof as possible. There still cannot be a perfect investment answer and the risks will still remain. After all, managing this gap is what smart investing is all about!