Stand Firm! Contrarian investing in a few ways is similar to golf. Many of us grew up playing softball or baseball. If you wanted the the ball to travel farther, you would swing harder. In golf, if you want the ball to travel farther you have to swing easier and let the club do the work. Swinging harder is actually counterproductive and often causes a nasty slice or a chunk of the ball. Also if you want the ball to go up into the air, you have to swing downward on the ball. Huh? Yes, the club face is designed to move the ball upward, and the only thing a scoop of your club, or 'trying to help it up' will do is dribble it forward. So it is as well with the contrarian investing that Sean Hyman advocates. It is counter intuitive, just as the golf swing. I'll bet if you apply what I wrote to hitting golf balls, your shots would get better. Apply what Sean has to say about investing, and your portfolio i will improve. Hold Fast! He knows what he is saying. Naysayers, should aviod posting!

Comments (3)
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Sean Hyman
Sean Hyman

Editor

Thx. It’s so true. Love the analogy.

JimA
JimA

and as Sean reminds us, we must also keep a sound mind and learn patience. It took me years on the golf course to learn patience, to stop trying to force birdies. If my tee shot didn't put me in a good position, I still tried to go for the flag stick and the result was usually horrible (not sound of mind). When I learned to have patience, take what the course gave me, just aim for the green and settle for par (in my mind) from the fairway or the trees, soon enough the tee shots afforded me ample opportunity to aim for the flag and putt for birdies. The results were eventually seen in consistently lower scores.

It took me a while to learn this type of patience in investing. Like birdies, profits can't be forced. Averaging down when the stock drops is (for me) like temporarily settling for par. It was difficult for me since this takes longer than a round of golf, but once I learned to accept what the investment gave me, to remain patient, keep a sound mind and follow Sean's guidance and advice, soon enough the results were seen in higher profits and a steady increase in my portfolio balance.