Investing Against the Grain

It's fun to go against the grain. Particularly when investing in the stock market, it's good to shake things up, to challenge conventional thinking. The alternative is not good: Marching in lockstep with the consensus is a certain prescription for mediocrity. Do you want to beat the market? Then think outside the box and challenge any and all conventions. Be outrageous!

Here are a few personal predilections that have worked well for me. In contrast to the staid methods on Wall Street, they are certainly unconventional.

Get in Front of Change

The crowd likes to wait until it's safe before taking a position. Analysts and many investors like to see evidence of improvement or a cycle turn before investing. I don't think waiting for evidence of a turn in business conditions equates with safety at all. In fact, I think safety is reduced. ...