Contrarian Investing

by Anthony M. Gallea

Explains how independent thinking can lead to potential profits in the market, including advice on the best percentage of a portfolio to place in each stock, the single best buy signal, and rules for knowing when to sell

Genres: Finance

268 pages, Hardcover

First published January 1, 1998

Reviews

[Renkly Biri · Rating 5 out of 5]

I really fascinated by the book. I have learned many things. The book based on many academic researches.
I give a short summary of the book. Enjoy :)

5 main rules about when to buy
1- Down by half rule: A stock must be down in price at least 50 % from its 52 week high.
2-Price/free cash flow ratio of less than 10
3-Price/book value ratio of less than 1.0
4-Price/earning ratio of Less than 12.
5-Price/sales ratio of less than 1.

First one is a must criteria but at least two of the following four fundamental analysis indicator must meet.

We also need some confirming indicators
1-Major stock purchases by insiders or knowledgeable outsiders.
2-A change in top management is a positive signal for rebounce.

To manage risk
1-No single stock constitue more than 5 percent of a contrarian portfolio
2-Each investment theme make up no more than 20 percent of a contrarian portfolio
3-Don't make more than a 25 % loss any single stock. Allways use an auto stop loss.
4-Never and never average down a stock.
5-Choose negatively correlated stocks.

When to sell
1-Sell after a 50 % gain or three years.(which comes first)
2-Don't spend time with mechanical selling technique. Automated sell is advised.

[Sanuk · Rating 3 out of 5]

This is a simple but interesting book on investing. It simplicity make it easily applicable. I think the authro could have said the same thing with much fewer pages but it is very common in non fictional book.

[Tayfun · Rating 5 out of 5]

Piyasalarda yatırım yaparak tasarruf yapmak isteyenlerin sıkılmadan okuyabileceği bir kitap. Tabi amerikan piyasaları baz alınarak hazırlanmış ama yazarlar, stratejilerin abd dışındaki piyasalarda da kullanılabileceğini belirtmişler.

[audie crear · Rating 5 out of 5]

Said to be based the Graham method for picking stocks.I've tested this method and so far it still works,blending technical and fundamental analysis one is taught to build a portfolio of 20 to 35 distressed companies and hold them for up to 3yrs. Fortunately it doesn't take that long for the companies to appreciate,but be careful half of the portfolio will show a loss while the other half will appreciate but you'll still show a profit

[Eray Doygun · Rating 3 out of 5]

Çok fazla tekrar var. Son sayfalarda özetlenmiş ve aslında kitap kısmen o özetten ibaret.

[Mostafa · Rating 3 out of 5]

يدور هذا الكتاب عن مثل عربي وهو ((خالف تعرف )) وفيما معناها
ان يقوم المستثمر بالشراء عندما يكون الاجماع في السوق علي البيع _وفقا لشروط معينه
والعكس صحيح
ولكني لم اكون الي الان راي عن هذا الموضوع لانه يحتاج الي بعض البحث والتاني ودراسه الشروط
ولكنه كتاب خفيف ويمكن للملم بخلفيه ضعيفه عن البورصه _مثلي _ قراته بسلاسه باذن الله