“Similarly, engineers have also developed the habit of adding a margin for error into all calculations. In an unknown world, driving a 9,500-pound bus over a bridge built to hold precisely 9,600 pounds is rarely seen as intelligent. Thus, on the whole, few modern bridges ever fail. In practical life outside of physical engineering, we can often profitably give ourselves margins as robust as the bridge system.” -Shane Parrish
“The difference between the intrinsic value of a stock and its market price.” – Gabriel Weinberg
“This term, margin of safety, is an engineering concept used to describe the ability of a system to withstand loads that are greater than expected.
There are many ways to implement a margin of safety in everyday life. The core idea is to protect yourself from unforeseen problems and challenges by building a buffer between what you expect to happen and what could happen. This idea is widely useful on a day-to-day basis because uncertainty creeps into every area of life. Let’s explore a few ways we can use this concept to live better.” – James Clear
Source:
Shane Parrish’s Farnam Street Mental Model Guide
https://www.farnamstreetblog.com/mental-models/
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Gabriel Weinberg’s Mental Models I Find Repeatedly Useful
https://medium.com/@yegg/mental-models-i-find-repeatedly-useful-936f1cc405d
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James Clear Mental Models Overview
