Buffett is a contrarian investor from "summary" of The Warren Buffett Portfolio by Robert G. Hagstrom
Buffett's reputation as a contrarian investor is well-deserved. He has a unique approach to investing that sets him apart from the crowd. While most investors tend to follow the herd, Buffett goes against the grain. Instead of buying into popular stocks, he looks for undervalued companies that others have overlooked. This contrarian strategy has served him well over the years, allowing him to achieve consistent success in the market. One of the key principles of Buffett's contrarian approach is to be patient and disciplined. He doesn't let market fluctuations or short-term trends dictate his investment decisions. Instead, he focuses on the long-term potential of a company and is willing to hold onto his investments for years, if not decades. This long-term perspective allows him to weather the ups and downs of the market and avoid making hasty decisions based on emotion. Another important aspect of Buffett's contrarian strategy is his focus on value investing. He looks for companies that are trading at a discount to their intrinsic value, which he determines through careful analysis of their financial statements and competitive position. By buying these undervalued stocks, Buffett is able to minimize his downside risk while maximizing his potential upside. Buffett's contrarian approach also extends to his willingness to go against popular opinion. He is not afraid to bet against the crowd if he believes that the market is undervaluing or overvaluing a particular stock. This willingness to trust his own judgment, even when it goes against conventional wisdom, has helped him achieve extraordinary returns over the years.- Buffett's contrarian approach to investing is a key factor in his success as an investor. By going against the grain, being patient and disciplined, focusing on value, and trusting his own judgment, he has been able to consistently outperform the market and build a strong portfolio of successful investments.
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