WPPGF - Why Contrarian Value Investing Is Both Agony And Ecstasy
Back in 1939, an investor called John Templeton made an unusual series of investments that eventually helped cement his reputation as a legendary contrarian. As America was emerging from 10 years of the Great Depression, Templeton (who was only in his late twenties at the time) sensed an opportunity.
He bought $100 of every stock trading below $1 on the New York and American stock exchanges, paying around $10,400 for stakes in 104 companies. Four years later, 34 of those companies had gone bust, but Templeton had still made four times his money.
He went