the Contrary Investor

August 8, 2007

Thought of the day

Filed under: General — contraryinvestor @ 7:23 am

Caution

I am currently contemplating other investments, but since people do seem to be reading the blog I feel obliged to post something. My main concern as people begin trickle into the site is that anyone reading this site proceed with caution and with a long term investment horizon (3-5 years). In the cases where options are discussed the longest dated available options are by far the most prudent and where possible LEAPS are preferred.

And now… a thought on contrarian investing:

“There is a very important difference between being a theoretical contrarian and dealing with it in practical terms. In order to win as a contrarian, you need the right timing and you have to put on a position in the appropriate size. If you do it too small it’s not meaningful; if you do it too big, you can get wiped out if your timing is slightly off. The process requires courage, commitment, and an understanding of your own psychology”

Michael Steinhardt

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