The second basic tenant of value investing is the margin of safety: a security should preferably be purchased at a deep discount to its intrinsic value, to help limit the amount of downside risk the investment has. Are You Kidding? It may be cheap relative to its own history, the rest of the sector, or the market as a whole. He decides that he should not sell, but rather continue to rely on his original analysis and hold the stock. Does branding matter Are there regulatory protections, such as tariffs?