Contrarian investing
A contrarian investing style is when one attempts to achieve investment outperformance by going against the crowd - "buying straw hats in winter".[1] It is often considered a type of value investing. A contrarian believes that certain crowd behavior among investors can lead to exploitable mispricings in securities markets.[1]
Being a contrarian can be rewarding, but it is often a risky strategy that may take a long period of time to pay off.[2]
Famous contrarian investors include David Dreman and Sir John Templeton.
See also
References
- ^ a b Wikipedia, Contrarian investing, viewed March 13, 2018.
- ^ Chen, James (April 6, 2022). "What Is a Contrarian? Strategy in Trading, Risks, and Rewards". Investopedia. Retrieved February 20, 2023.
Further reading
- David Dreman, Contrarian Investment Strategies - The Next Generation, Simon and Schuster, 1998. ISBN 978-0684813509
External links
- Tom Bradley, Three ways to be a great contrarian investor, The Globe and Mail, updated March 25, 2017
- Forbes, 5 Rules Of Contrarian Investing, April 28, 2014