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Contrarian Investing: Buy and Sell When Others Won't and Make Money Doing It (New York Institute of Finance)
by Anthony Gallea, William Patalon
Product Group: Book
Publisher: Prentice Hall Press (1999-01-30)
ISBN: 0735200785
EAN: 9780735200784
Dewey Decimal #: 332
Paperback: 288 pages
SKU: 20438
Condition: Used: Very Good
Comments: Paperback. All pages clean and free of marks.
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Editorial Reviews
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Product Description
"The book does provide investors a valuable reality check in an age when the stock market continues to defy gravity". -- Teresa McUsic - Knight Ridder News Service How to succeed and profit by NOT following conventional trends, that is the secret to Contrarian investing: buy assets that are out of favor. Here, Anthony Gallea a Contrarian with impressive credentials and William Patalon a savvy business writer -- explain this strategy for everyone in the market: novices and professionals alike. Contrarian Investing gives readers the investing tips and techniques used by a portfolio manager overseeing $600 million in assets, with a track record for focusing on increasing returns while attempting to reduce risk. Written in a conversational style with exciting stories about big name but (at one time) out-of-favor stocks like Chrysler, IBM, Citicorp, and Xerox. Gallea and Patalon show how the Contrarian approach can be systematized. They identify the key indicators backed by solid research that tell an investor when to buy and sell stocks. The authors have created a set of guidelines or trading rules that any investor can learn and put to immediate use. Readers will understand: Why Contrarian stock-picking works
How to identify a Contrarian stock
When to buy; when to sell
How to help reduce risk
And the key to Contrarian investing -- the psychology of investors
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Customer Reviews
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SIMPCLITY and powerful
Rating  (5)
Date: 2008-06-03
This book is awesome.
It gets straight to the point and is an easy read.
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I expected much more!
Rating  (1)
Date: 2006-03-24
1 out of 3 customers found this reveiw helpful
The claim to fame of the book is to buy stocks down atleast 50% from their 52 week high and to look for insider buying at these levels.
While good advice its far from perfect nor very insightful or original. I think contrarian investing is a very interesting topic that has huge potential, so when I read this the authur made no attempt to prove his superior insight in to the markets.
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Watch for extremes in market sentiment.
Rating (5)
Date: 2005-12-31
1 out of 1 customers found this reveiw helpful
To be a contrarian means betting against crowd, and against the prognosticators and pundits who, as highly visible experts, are makers of mass opinion. A contrarian is interested in the extremes in market sentiment, not just disagreeing with the majority. In order for a contrarian to profit, the whole must be convinced they are right in their investment sentiment and the contrarian position juxtapose in the reverse sentiment. A contrarian investor measures opinion of the investing public, and the when the opinion reaches an "unreasonable extreme", he invests against it; a contrarian should avoid mass media speculation that accompanies market tops. Investors are attracted by action, by the potential for profit. When a stock has risen for a long time, and then really accelerates to the upside, it can suddenly attract a whole new group of investors who will strong bid for the stock. People have a way of projecting into the future, a straight line from the past, unfortunately for them, the run rarely continues. Reversal occurs.
Buy rule: 1. A stock must be down 50%, in the last 12 months and experiencing significant insider purchases. 2. Any two of the following: PE < 12, Price/Cash Flow < 10, Price/Sales < 1, Price/Book Value < 1
Sell rule: 1. A stock must rises 50% from its purchase price or after 3 years which ever comes first 2. Sell on 25% loss 3. The investor should seek stocks that pay dividends can keep in cash for investment purposes.
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Worth the time and the price
Rating  (4)
Date: 2003-01-14
5 out of 5 customers found this reveiw helpful
Nowadays many people so easily refer themselves as contrarians as if the title will easily make them winners in the investment game. Of course, common sense, though not really common, tells us something otherwise.
In this book, many historical examples had been quoted about how those genuine contrarians bought on panic and sold on eurphoria, and it's only when the market consensus was at its extreme that the contrarian play would pay. It makes no sense just to think that you are playing opposite to the crowd whilst you simply belong to one of them.
In this respect, the authors had put forth a contrarian system for investors to follow, rules based on value/fundamental investing but with solid technical elements of when to enter a market and when to stop profit/loss. So called real life stories and testimonials to support the authors' theories and propositions are abundant everywhere. Psychology behind a trend is vividly elaborated.
I think that the book is a good leisure reading for veterans and a good starter for beginners. Definitely you wont get bored. The lovely pigs on the front cover do tell something about how the authors would like it to be.
p.s. The foreword by Jim Rogers, reprinted from an article In Rogers' own book Investment Biker, and also many of those adages in the beginning of every chapter, are excellent.
"Dont fight forces; use them."
"The easiest job I have ever tackled in this world is that of making money. It is, in fact, almost as easy as losing it. Almost, but not quite."
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Good presentation of a trading system
Rating (5)
Date: 2000-09-19
0 out of 1 customers found this reveiw helpful
I bought this book as a counterpoint to my interest in momentum investing in high technology stocks. The criteria they set for picking "loser" stocks that can be "saved" restrict contrary picks to a few investments, but the investments are worthwhile additions to a portfolio of momentum stocks. Their criteria for stop-loss trades is also worthwhile to either contrarian or momentum investment picks.
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