Once you`ve figured out what a company is really worth, its margin of safety will tell you when it`s time to buy and when it`s time to sell. The lower the company`s price with respect to that intrinsic value, the stronger the margin of safety, and the better the chance that buying that company will lead to a profitable investment. The higher the company`s price with respect to that intrinsic value, the more that margin of safety has been reversed, and the better the chance that it`s time to sell your position and take the extra profits from your bargain-hunting trip.