Contrarian investing


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Contrarian investing

Ignoring market trends by buying securities that the investor considers undervalued and out of favor with other investors.
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Buying one fund from each of these categories and sticking with them for a few years has been a profitable investment for those who have the patience and willpower to handle contrarian investing.
Many people lost faith in value or contrarian investing over the past three years, but we think this year has redeemed the principles that many of us have long followed: We reject the herd mentality of the mob and, instead, try to find the unrealized jewels that the masses have ignored," said John E.
Lester Majkowicz makes use of all the tools in his investment arsenal from fundamental and technical analysis to contrarian investing.
David Dreman, famed for pioneering a contrarian investing strategy, notes that at RJR's current dividend rate, he needs to hold it for just five years to recoup his initial investment, even if the stock falls from its current $23 a share.
This bravado from the Wall Street community seems incongruous, given the equity's poor price action, but that's what contrarian investing is all about.