to follow the popular beliefs, so anyone who is able to break away
from this crowd mentality gains an edge. Since the majority times its
decisions poorly, taking a different approach makes sense. You need
to discover trends and then determine what they mean and how they
affect long-term investment value.
Does this mean you should be a contrarian? At times, it does; but
this observation goes beyond the rather obvious aspects of contrar-
ian strategies. If you recognize that the crowd mentality is more
often wrong than right, then the contrarian approach is one way to
apply the idea of going against the common beliefs. However, using
the core earnings approach, ...