Why standing apart stands out

Value investing and contrarian investing are intrinsically related. Value investing seeks to identify good quality companies that are trading cheaply. To achieve that goal, contrarian investors tend to look in places that others have not. In doing so, they hope to uncover opportunities that are cheap relative to their intrinsic worth.

Both sets of investors must first establish what they believe a business is worth before betting against the market. There are few things as rewarding for either a value investor or a contrarian investor (many of which are one and the same person) than identifying a dislocation and mispricing in the market, supported by a consensus view, and investing with success despite the wider community’s concerns. It is worth noting that there is a subset of contrarian investors who do not undertake fundamental analysis of a business before they buy. This investor is keen to speculate (often successfully) that […]

Click here to view original web page at www.livewiremarkets.com

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.