Mohnish Pabrai
Being contrarian and right is a powerful investment strategy. It involves going against the crowd and making investment decisions contrary to the popular trend. The key, however, is not just to be contrarian, but to be right.
As Warren Buffett famously said, "Be fearful when others are greedy and greedy when others are fearful." This quote encapsulates the essence of this contrarian approach. When the majority of investors are buying, it may be the time to sell, and vice versa.
Similarly, Howard Marks, the co-founder of Oaktree Capital Management, has also expressed similar sentiments. He stated, "What the wise do in the beginning, the fool does in the end." This signifies that when a particular investment strategy becomes popular, it may no longer be profitable.
In essence, being contrarian and right involves having the courage to go against the market trend and make independent investment decisions based on a thorough analysis of the asset's value. It is about seeing opportunities where others see risks.
An example in my own life is when Meta stock hit $85-90 in November 2022. I bought in $130 and I decided to double down because I believed the stock was undervalued - even though the ‘market’ disagreed. In 2024 it hit USD 480. My only regret is not backing it harder!