Investing with a value philosophy can be considered as one form of contrarian investing. Buying stocks that are out of favor in the marketplace, and avoiding stocks that are the latest market fad is a contrarian investing strategy. Thus it is an investment style that goes against prevailing market trends, where investors buy scrip that are performing poorly now and sell them in future when they perform well.
Contrarians believe in taking advantages that arise out of temporary set backs or other such reasons that have caused a stocks price to decline at the moment.A simple example of Contrarian Philosophy would be buying umbrellas in winter season at a cheap rate and selling them during rainy days.
Monday, April 6, 2009
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