How to Identify Counterfeit Investments
Introducing Counter Investment
We are all familiar with the nuances and subtleties of ‘rowing against the tide’ or ‘sailing against the wind’. Doing something different from what is usually reflected in the above quotation. In the investment world, when one chooses to fight the prevailing market by buying a non-performing asset and selling shares that are considered ‘pink health’, investors practice ‘contrarianism’.
What is Investment Cons?
Contrarian investors identify investment opportunities and counter cons of investing by using contradictory proven investment strategies. Attackers can invest in ‘contra stocks’ as well as ‘contra fund’ following the ‘controversial approach’. How to Identify Counterfeit Investments
Thinking behind Contra Investments
The profile of ‘opposing investors’ reflects the distinctness of a different minded person. If Bollywood cliches are borrowed to describe this tribe, then the ‘whores’ belong to the ‘zara hat to’ group (excluded from normal) people.
The group of people who follow the counter feel that when the market goes up it is because people are fully invested and there is no further purchasing power available to them. On the other hand, when an estimated decline, people have sold the stakes, therefore at the moment the market can only go up.
They think it is against the market. It’s a contrarian approach. This makes them identify successful counter investments. Sir Jon Templetong on ‘Contrarian Investing’
Sir John Templeton, rated highly as a contrarian investor and the story of the increase is an interesting thing, but more than that later. What Sir Templeton says about ‘Contrarianism’ is very precise- ‘Buying when others sadly sell and sell when others buy right, takes the greatest courage, but gives the greatest advantage’. How to Identify Counterfeit Investments
In one sentence he explains the contrarian investment very clearly. This is the beasic principle behind contrarian investment strategies. If you follow this one principle, you can easily identify profitable counter investments.
Important Elements of Counter Investment Strategy
As per Howard there are two main elements for contrarian investment:
I. Looking at some qualities that can not be seen or appreciated by others and therefore are not reflected in market prices. If something extraordinary or unusual is noticed – for example a technology that has great potential in the future, but is still being developed, then it could be a gold mine if someone has the foresight to invest in it.
II. Finding that the market justifies investor confidence. Sometimes we worry about our ability to assess the current situation. We were recalled by self-doubt but bet on investment and it turned out to be a winner. This is about the proof of faith.
The two elements above are the guiding factors behind the formulation of successful contrarian investment strategies.
The Nature of Success for ‘Counter Investment’
Being a ‘controversial’ investor takes a lot of courage. The peculiar nature of such contrarian investors requires the ability of second-rate thinkers who are insightful, skilled, and sharp. People who can think outside the box and distance themselves from the consensus portfolio. Conventional wisdom must be set aside, buffets are very specific in this case “long on conventional short on wisdom”.
Attackers have the ability and confidence to tell the world that the market is wrong in its judgment, as at certain moments; Its ability comes from investor-resistant nature and self-confidence derived from the fact that they have a strong sense of “intrinsic value” and “safety margin”.
To be successful with the contrarian investment these traits are very important. Develop these qualities within you and introduce the investors who have these traits in them. If you can overcome this serious thing, you will become very successful with contributor investment sooner or later. Unconventional aggression – The key to “controversial investment”
Some features of ‘contrarians’ make them stand apart in the investment world. Some investors believe the dictum ‘wisdom is the better part of courage’, they prefer to wait for the dust to settle rather than catch the falling knife. However, contraceptives are opponents of nature and therefore will try and catch fallen knives rather than weighing their chances as the dust settles because there is likely to be no bargaining when everything goes back into the groove.
Contrarians are iconoclastic and they break away from the k method