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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. CONTRARIAN INVESTING TAGSbenj gallanderrobert shiller investment philosophyalgo-charter_ifrobert shiller investment strategy

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 »

The low P/E, P/CF, P/D and P/BV Strategy

Contrarian Investing Strategy One

Findings show that companies in which the market has high expectations, as measured by the above ratios, have consistently performed the worst.  The reason is, that a market premium is paid for near term ‘visibility’ on earning prospects.    To evaluate the value of a company, forecasts must be made with extreme accuracy into the future.  We have already discussed this earlier – this is very difficult to do.  Investors and analysts also have confidence and optimism that earnings expectations will be met.  Over-confidence about information and forecasts, a reliance on ‘experts’, and over-optimism leads to a deadly combination. This is something …Read more »

Benjamin Graham Investment Philosophy

Benjamin Graham

Benjamin Graham, the father of value investing, was perhaps the most influential investment figure of all time.His work laid the foundation of modern security analysis, and two of his books,The Intelligent Investor (1949) and Security Analysis(1934), are investment classics that remain bestsellers to this day. His Life and work have been inspiration for many of today’s most successful investors, including Warren Buffett, Michael F. Price, and John Neff. A few words of wisdom include the following: (1) Be an Investor, not a speculator “Let us define the speculator as one who seeks to profit from market movements, without primary regard …Read more »

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