Contrarian Investing

Contrarian investing is an investment strategy that involves going against the grain of the stock market. It involves buying stocks that are out of favor with the majority of investors, and selling stocks that are popular. The idea is to buy low and sell high, and to take advantage of market inefficiencies. Contrarian investors believe that the market is often wrong, and that by going against the crowd they can make money.

History of Contrarian Investing

Contrarian investing has been around for centuries. The term was first used in the late 19th century by British economist John Maynard Keynes. He argued that investors should go against the crowd and buy stocks that were out of favor. This strategy has been used by many successful investors, including Warren Buffett and George Soros.

Contrarian investing is based on the idea that the market is often wrong. By going against the crowd, investors can take advantage of market inefficiencies and make money. This strategy can be risky, as it involves buying stocks that are out of favor with the majority of investors. However, it can also be very rewarding if done correctly.

Comparison Table

Summary

Contrarian investing is an investment strategy that involves going against the grain of the stock market. It involves buying stocks that are out of favor with the majority of investors, and selling stocks that are popular. The idea is to buy low and sell high, and to take advantage of market inefficiencies. Contrarian investors believe that the market is often wrong, and that by going against the crowd they can make money. For more information about contrarian investing, you can visit websites such as Investopedia, The Motley Fool, and Seeking Alpha.

See Also

• Value Investing
• Growth Investing
• Momentum Investing
• Index Investing
• Fundamental Analysis
• Technical Analysis
• Risk Management
• Portfolio Management
• Diversification
• Market Timing

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