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Does a contrarian investing strategy yield better results? An analysis

When consensus recognises the changing fortunes of an underlying business and upgrades ratings, it pays to be among the early birds in investing in such a business

Contrarian investing can reap rewards but it tests investors' conviction

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3 min read Last Updated : Jul 16 2019 | 2:11 PM IST

Savvy investors buy stocks for the long term with an aim to beat market returns over a period of time. It not only takes skill to identify such counters among the myriad choices available, but also disciplined investing.

While the strategy of ‘going with the flow’ and buying/selling stocks as most other investors/traders are doing is common, it takes skill to identify stocks and a lot of courage to make an investment decision that is contrary to the popular trend. Swimming against the tide is a risky proposition and may/may not yield the desired result.

A recent study by Motilal

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