Contrarian Investing Facebook Group

First of all, the site is independent.  The good news is that this works to our advantage.  Being both rational and independent are critical to successful Contrarian Investing. You will also realize that as a Contrarian Investor we are very skeptical of so called “experts”, “the media”, and the “crowd”.   A contrarian needs to questions everything — what they read, hear and see — and to independently think whether the information points to an extreme in opinion.  It is a trade off – you will receive comfort and encouragement if you go with the crowd, or you will receive …Read more »

Contrarian Minded Investor

Believe it or not, Contrarians are not alone in their investment beliefs, although at times it feels like it. It is not easy to be a Contrarian minded investor, in today’s fast-paced and get-rich-quick ideological investment environment.   One of the most difficult aspects of a contrarian strategy is the strategy’s execution.  As  investors, we face uncertainty when we invest our capital.  It represents our savings and our financial security.  An investor suffers the ultimate consequence of an erosion of capital when a bad decision is made.  The success of a contrarian investing strategy requires the investor to go against gut reactions, and …Read more »

Contrarian Investing Books to Read

The Five Rules for Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market by Pat Dorsey OVER the years, people from around the world have turned to Morningstar for strong, independent, and reliable advice. The Five Rules for Successful Stock Investing provides the kind of savvy financial guidance only a company like Morningstar could offer. Based on the philosophy that “investing should be fun, but not a game,” this comprehensive guide will put even the most cautious investors back on the right track by helping them pick the right stocks, find great companies, and understand the …Read more »

Robert J. Shiller Investment Philosophy

Robert Shiller

Based on the research and data of Professor Robert J. Shiller, smart investors know that market timing is a key success factor to building and maintaining wealth. Investor genius Warren Buffet made billions by buying the right companies at the right time – when “value screamed”! He wisely avoided the recent ‘tech bubble’ and kept his fortune in tact. “In the short run the market is a voting machine, in the long run it is a weighing machine”. Avoid buying when the market is too expensive and exploit market opportunities.

Defensive Investing Strategy

Contrarian Investing Strategy Four

There seems to be a lot of talk about stock dividends and other fixed income investments.  Dividend paying equities have always been core components of any contrarian’s portfolio.  Contrarians by nature are part-active and part-passive. Before making a stock selection, the intelligent investor should keep two key concepts in mind.  First they should question, whether they are investing or speculating with regards to a purchase that is made.  Secondly they should question, whether a stock selection is good value by fully understanding the concept of margin of safety – the difference in market price versus underlying value. The single most important intellectual development of …Read more »