Contrarian

  • 09 May
    Investment Research: The Challenge of Finding Attractive Investments

    Investment Research: The Challenge of Finding Attractive Investments

    • Bargains can be found through book value, special situations, 52 week lows, merger arbitrages, bankruptcies, etc.
    • It’s necessary to be a contrarian to be a value investor, though it might be painful for a while.
    • With experience, it will take less and less time to assess a stock and whether it has the potential to be a good investment.

    Introduction

    Last week we discussed Klarman’s view on the best business valuation methods. You can find the article here. Today we’ll discuss his approach to investment research.

    Studying fairly priced securities won’t get you far because you’re competing with thousands of others who have researched those companies and, especially in the current market environment, if there is anything worth owning, it will probably be expensive. Therefore, to find bargain investments, an investor has to look where others aren’t looking or refuse to look. More →

  • 20 Nov
    Sunday Edition: Time To Buy E. Coli

    Sunday Edition: Time To Buy E. Coli

    Last week we discussed what it means to be a contrarian investor. And why, when done successfully, it can lead to substantial market outperformance.

    Today we are going to discuss a specific contrarian opportunity in the chain restaurant business. More →

  • 13 Nov
    Sunday Edition: The Art Of Contrary Thinking

    Sunday Edition: The Art Of Contrary Thinking

    I bought my first shares in a publicly traded company in ‘95, as a 22 year old college dropout. I can’t remember the name of the company or the ticker.

    What I can remember is that it was a hot tip from a friend and a pink sheet stock, although at the time I didn’t know what that meant. Yes, the company went out of business and I lost $2,000 bucks.

    Back then I was eager to learn and devoured every book I could get my hands on, that I believed held the key to getting rich in the stock market. More →