On Being Contrarian and Astute

By Kuldip K. Ambastha and Anil K. Ambastha

Nearly every time I strayed from the herd, I’ve made a lot of money. Wandering away from the action is the way to find the new action. (Jim Rogers; https://www.goodreads.com/quotes/tag/wall-street)

I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy. (Warren Buffett; https://www.goodreads.com/quotes/tag/wall-street)

One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute. (William Feather; https://www.forbes.com/sites/timothyspangler/2014/01/24/11-great-quotes-about-life-on-wall-street/#5ac7d75425a1)

In investing, being contrarian and astute are both critical to success in portfolio management. When a stock or sector is out of favor, buying into it may lead to good results if done properly. Cyclicality can be a friend, as long as proper research is done in advance to find a liquidity play and not a liquidity trap. Buying into a struggling but fundamentally sound position is good. Buying into a struggling and dying position is bad. By developing a thoughtful and rigorous approach to investment research based on sound, time-tested principles, one can become both contrarian and astute in investing matters.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2020 – Ambastha Financial LLC.

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