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:
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- 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
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