I am not going to sugar coat this. Investing is easy but investing and beating the market is an anomaly. My investing results have come from deeply battered, ignored stocks, trading at irrationally low prices to the estimated liquidation value or the net current asset value.

Ask yourself these questions?

Would you be willing to invest in a stock that is losing money?

Would you be willing to invest in emerging markets at severely depressed valuations?

Would you be willing to invest in a stock that may not be a darling of growth over the next 12 months?

If you are, then perhaps, you may have the contrarian streak in you required to be successful in the stock market.

In this Quora post, I write and elaborate briefly on how to think like a great investor. One word perhaps explains it all. Contrarianism.

To be contrarian, one really has to go against the built in biases and the herds at work.

To know more, you can read the post here. The post comes with examples and more. At the very least, I’d like to think that it is an entertaining read on a lazy afternoon.

In any case, I hope you can learn something from this.

As always, may you be blessed with prosperity, health and happiness!

 


kingsley

I have been an investor for 15 years now and my journey has meandered from Warren Buffett to Ben Graham. My start, like many, really was the naive idea that Buffett's skills could be replicated in some fashion. I was proven wrong when some of the supposed stock picks that I chose had dismal performances. Then, I learnt that it is no point trying to be someone I am not. Gradually, through failure and some success in deep value investing, my approach towards stocks gradually shifted to an approach based around Graham's techniques. So, I give credit where credit is due and to Ben Graham, I and many other investors around the world, owe him a great deal. So, if you want to read up on biographies, read about Ben Graham. His seminal work, Security Analysis is a gem. My books are just rich interpretations of what he has taught.

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