Contrarian Investing

Equity Private has a good quote in a recent post about how to think about contrarian investing. 

  1. Present the current state of affairs. 
  2. Present the inefficiency embedded in the state. 
  3. Explain the problem that has thus far prevented a correction of the inefficiency. 
  4. Present the new development that now permits the correction.

Equity Private goes on to say:

An amazing amount of clarity can be introduced into investment theses just by framing the problem in this fashion.  This, in my view, is the essence of deep thinking as a prerequisite to action, the foundation of my approach to contrarian investing, and why I love buyouts.

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One Response to Contrarian Investing

  1. […] way to look at USG is using the framework from Equity Private regarding how to frame a […]

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