Contrarian investing requires a contrarian mindset from "summary" of Contrarian Investment Strategies in the Next Generation by David Dreman
Contrarian investing is not for the faint of heart. It requires a unique approach to the market, one that goes against the grain of popular opinion and prevailing trends. In order to be successful as a contrarian investor, one must possess a contrarian mindset. This means being able to think independently, resist the influence of the crowd, and have the courage to go against the prevailing sentiment. A contrarian mindset is essential because, in the world of investing, the majority is often wrong. Markets are driven by emotion and sentiment, leading to periods of irrational exuberance and despair. Contrarian investors understand that these emotions can cloud judgment and cause assets to become mispriced. By taking a contrarian approach, investors can capitalize on these mispricings and generate outsized returns. Contrarian investing requires a willingness ...
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