Make Money by Going Against the Herd
Contrarian investing. Itβs a term that may stir up images of investors who take unnecessary risks by pumping huge sums into an untested and unproven investment.
Contrarian investors are often mistaken for risk-takers. But thatβs not the case. Most people never think about it, but Warren Buffett is also a contrarian investor.
What does contrarian investing even mean? And more importantly, how can you apply its principles to your own investment strategy?
What it means to be a contrarian investor
Put simply, contrarian investors go against current market trends. They might buy when others are selling and sell when others are buying.
A good example is the fourth quarter of 2022, the year of The Great Inflation. As the S&P 500 and Nasdaq 100…