What are the risks in going with the flow?

Orbis Investments

Swimming against the tide can be painful, but there are long-term risks associated with investing in what everyone else thinks is a good idea.

 

 

Bank of America Merrill Lynch recently published a survey of global fund managers which found that, on average, respondents were expressing a preference for assets traditionally considered "safe".

While that may sound like a solid plan at the moment, this piece from Orbis Investments notes that "the real risk with any investment is paying a higher price than it is worth and seeing your capital permanently impaired."

Is it really a good idea to trade future return potential for near-term comfort?

If you read this, you will learn:

    • what a contrarian portfolio looks like compared to most fund manager weightings
    • why recent performance shouldn't be the sole predictor of future success
    • a contrarian case study of two well-known stocks

       

       


      The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here

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