Contrarian investing is a state of mind. Contrarians seek to invest against the opinion of the crowd when that opinion reaches an extreme. When a stock or a market plunges on bad news, most investors sell, or avoid the investment altogether. But that is just when the contrarian becomes interested and takes notice of a potential opportunity.
In Contrarian Investing Gallea and Patalon show you how to recognize the diamond in the rough. As a result, you'll have a shot at market-beating returns, even as you seek to reduce your risk. In their thoroughly researched book, the authors lay out time-proven principles in easy-to-understand terms. You will learn:
Why independent thinking could lead to potential profits in the market
The personality of the successful contrarian
The best percentage of a portfolio to place in a contrarian stock
Five contrarian rules to follow
The single best buy signal
Three ironclad rules for knowing when to sell
Gallea and Patalon give you the wisdom and confidence to break free from the pack and build your own successful contrarian stock portfolio.
'Investing with success is a never-ending battle. Contrarian Investing offers a wealth of resources to use.' Mark Fitzpatrick, VP Spears Benzak Salomon & Farrell 'Contrarian Investing develops investment ideas that can apply to international as well as domestic markets. Developing an independent, disciplined thought process is invaluable.' Mark Phillips, Head of Global Equities, Ivory and Sime International
Part I: Contrarian Overview 1. What is a Contrarian? 2. The Contrarian Advantage 3. Investing against the Grain: The Psychology of the Contrarian Strategy 4. Market Mania: Contrarian Lessons Part II: Contrarian Buy Signals 5. Technical Analysis: a Key Contrarian Strategy 6. Riding the Price Trend: Looking for Value 7. Insights on Insiders: Buying with the Smart Money 8. Fundamental Stock Analysis 9. The Power of Low P/E Ratios 10. Booking on Low Price/Book 11. Paying for Value: Cash Flow and Price/Sales Part III: Contrarian Sell Signals 12. Minimizing Risk: Contrarian Strategies 13. Contrarian Selling: Follow the Rules 14. Planning to Win: Creating Your Contrarian Strategy 15. Summary: The Rules of the Contrarian System Appendix A: Contrarian Math Appendix B: The Contrarian's Library