Stocks
Always Be a Contrarian, If You Want to Pick Winning Stocks
3 Ways To Know You Are Going Where Others Aren’t
The movie Glengary Glen Ross has a famous scene with Alex Baldwin saying:
C, Closing. Always Be Closing.”
That is his formula for success in sales. I submit that in the stock market and the world of investing, the phrase should be:
“A, Always;
B, Be;
C, Contrarian. Always Be Contrarian.”
In other words, to be successful in investing, always do the opposite as everyone else.
Last year, that would have meant three major things: (1) buy oil and energy stocks, (2) buy travel stocks like airlines, and cruise lines, and (3) buy entertainment stocks like cinemas, film companies, and destination companies. One year later, all of these stocks are up significantly off of their lows.
Virtually no analysts, no major hedge, and no major mutual fund were touting these stocks at their lows. No one was pounding the table, saying they were cheap and would turn around. Last year everyone was selling these shares. I have a general rule that if Jim Cramer says Sell, Sell, Sell…
