You knew that too, right?
Going contrarian is a buzz-phrase.
We hear it again and again…
… till we begin to start thinking…
… that we know what it means.
Well, try going contrarian.
Yeah, try actually doing it.
You’ll see what I mean.
It’s real hard.
Going against the crowd takes all the strength you might have…
… and then some.
Most humans aren’t able to go contrarian.
Most humans aren’t wealthy.
When there’s blood on the streets, there’s no telling how much more there will be.
Under such conditions, the contrarian investor lets go of his or her hard-earned money into an investment, knowing perfectly well that the Street might even value the investment tomorrow at a huge discount to today’s price.
That’s ok too, says he or she.
Because homework’s been done.
Underlying is strong.
Management is stellar.
Balance-sheet is robust.
Projections are paramount.
That the world is pricing the investment wrongly is a problem with its vision.
Underlying is not going under. With above credentials, this alone matters.
Times change. Vision of the majority changes. Investor makes a killing. Cashes out some, principal and what have you. Leaves lots of free-standing shares… forever… or till parameters change.
Wealth-generators repeat this behaviour-pattern many times in their lives.
They’re not afraid of going against the grain.
They know otherwise.
Also, the money they use has been freed up.
Its being out of action for a long time is not going to change their lives even a bit.
They will have the last laugh.
Wealth is the reward of going contrarian.