Financial Standard Guide to Contrarian Investing

Financial advisers willing to use contrarian funds have an advantage over their mainstream peers.

While not prominent in this part of the world, contrarian investing has a long history. Theoreticians ranging from
John Maynard Keynes to, more recently, Nassim Taleb have pointed out investors’ tendency to behave emotionally rather than rationally, causing market overreactions.

And contrarian investors, most notably Warren Buffett, have amassed vast fortunes by being greedy when others are fearful and fearful when others are greedy.

In contrast to most conventional investment funds, which aim to make average to, ideally, slightly above market average returns, contrarians concentrate on trying not to overpay for popular shares.

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