Contrarian Investing

• Author:: Michael Mauboussin
• Source:: https://drive.google.com/drive/folders/1JNYa0SFZtai-x5NsI_EoB9x0Tw-Z5uVs
• Related to:: investing

Contrarian investing focuses on the disconnect between the fundamentals and the expectations.

• Efficient Market Hypothesis requires several things:
  • Agent diversity
  • An aggregation method
  • Incentives
• The most likely principle to be violated is Agent Diversity
• There are [[principle agent]] issues that also reduce agent diversity. The business of investing is about fees.
• The two keys to contrarian investing are an independent mindsetmindset
  
  and long-term orientation.