Investing Wisdom on Contrarian Investing

These quotes are meant to be an entry point into the mindset of a contrarian investor. That is what my blog is all about. Look at what companies Wall Street is bashing, if you can find out what they’re overlooking, and then buy that company at a great price. Hopefully these quotes will show you the pros of becoming a contrarian investor, because although you’ll feel like an outsider, it’s a great way to gain an edge on most other investors when done properly.

Howard Marks – “All great investments begin in discomfort, since the things everyone likes and feels good about are unlikely to be on the bargain counter.”

“Our success rests on having the discipline to wait patiently for opportunities to present themselves and then having the courage to run towards them when everyone else is running away.” Steve Leonard

“Being a value investor means you look at the downside before looking at the upside.”-Li Lu

“The wisdom of crowds sometimes means finding the lowest common denominator”-Sam Zell

“The Black Sheep Is Sometimes The Only One Telling The Truth”-Grace Ink

“Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently.”-Walter Isaacson

Warren Buffett once said, “The difference between successful people and really successful people is that really successful people say no to almost everything.”

“The wisest rule in investment is: when others are selling, buy. When others are buying, sell.” Jonathan Sacks

“The secret to success is to know something nobody else knows.”
— Aristotle Onassis

“It’s actually pretty easy to be contrarian. It’s hard to be contrarian and right.”

“The overwhelming majority of people are comfortable with consensus, but successful investors tend to have a contrarian bent.”- Seth Klarman

“When you truly don’t care what anyone else thinks of you, you have reached a dangerously awesome level of freedom.”-Jim Carrey

It’s easy to talk the game , but living the game is something else-Charlie Munger

“ To succeed as a contrarian you must recognize what the crowd believes, have concrete justification for why the majority is wrong, and have the patience and conviction to stick with what is, by definition, an unpopular bet.” Author: Whitney Tilson

“ I usually ignore advice from other traders, especially the ones who believe they are on to a “sure thing”. The old-timers, who talk about “maybe there is a chance of so and so,” are often right and early.”-Ed Seykota

“Some people can’t move in silence because they desire attention more than progress.”-Karla Tobie

“Work hard in silence, let your success be your noise.”
Frank Ocean

“There are no bad days in the market. When the market is down, you’ve got bargains, and it’s lovely to think of what you are buying at low prices. When the market is up, the bargains have gone, but you’re rich.” BRUCE GREENWALD (FIRST EAGLE FUNDS

“I think a lot, but I don’t say much.” Anne Frank

“You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.”-Benjamin Graham

“Traders in the zone don’t need to know, and don’t care, what the market is going to do next. They know what they are going to do next. And that makes all the difference.”-@tradingmasteryz

“Buy the damaged stock, not the damaged company “-Jim Cramer.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”-Paul Samuelson

“Be fearful when others are greedy and greedy when others are fearful.”-Warren Buffett

“Value investing is at its core the marriage of a contrarian streak and a calculator.”-Seth Klarman

A value or contrarian investor can’t tell you what will outperform the market in any given year. They can, though, point out what’s cheap right now. This information is an excellent gauge when looking at what is likely to do well in 5 or more years.

“The smaller the better. The more illiquid the better. The less institutionally owned the better. The more misunderstood the better. The less talked about the better. You make money by driving through the fears of other investors.-@iancassel

5 contrarian beliefs:
What is obvious to you is not obvious to others-Don’t take tips or advice-But when people sell and sell when people buy, when you see it in the news and newspapers, it’s already over-no one sees a bubble when their income depends on it.

A Great Contrarian Stock:Low price to earnings ratio Low price to cash flow Low price to book Low price to dividend. The bottom 20% of the market is the focus. Low payout ratios
High return on equity. More than average dividend yield
Pre-tax profit margins at minimum 8%

When it comes to diversification and the stock market, just ask yourself, “am I better off by owning a larger basket of averageness or a smaller basket of greatness?”

“No formula in finance tells you that the moat is 28 feet wide and 16 feet deep. That’s what drives the academics crazy. They can compute standard deviations and betas, but they can’t understand moats.”-Warren Buffett


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