Contrarian strategies are the investment equivalent of seeking out social pain. In order to implement such a strategy you will buy the things that everyone else is selling, and sell the stocks that everyone else is buying. This is social pain. Eisenberger and Lieberman’s results suggest that following such a strategy is really like having your arm broken on a regular basis – not fun!
To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward
Sir John Templeton
It is the long-term investor, he who most promotes the public interest, who will in practice come in for the most criticism...For it is in the essence of his behaviour that he should be eccentric, unconventional and rash in the eyes of average opinion
John Maynard Keynes
To buy when others are despondently selling and sell when others are greedily buying!
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