Think beyond the obvious – Consider Contrarian Investing

Apparently, the term ‘contrarian’ means doing something that is different from the usual perception. It is a deviation from the normal which is not really readily acceptable at all times. But, in the investment world, being contrarian often yields good results. The effectiveness of investment is solely dependent on the amount of return it can generate. A contrarian investor always acts in counter-point to the prevalent market trend. In contrast to the contrarian investor, you have the fundamental or the value investor. He goes for a purchase or sale depending on the price of the assets in relation to their intrinsic value.

In contrarian investing, the investment strategy is devised on the fact that there is likely to be a negative serial of the co-relation of the prices. It is more-or-less a predictable guess that once the prices have gone up, they are sure to come down. Here, a certain aspect of the investors’ psychology comes into play. The investors are usually found to move in a herd-like behavior. In contrarian investing, the focus lies on this particular aspect.

It believes in independent action and negates this attribute of mass pessimism or optimism. It is intellectual independence blended with agnosticism with regard to the consensus views. Further contrarian investing deals with broad strategies instead of just focusing upon specific investments. Timing of the actions is perhaps the other most important factor. You can have contrary reactions that are favorable to the same challenge.

Written by srini on September 2nd, 2009 with no comments.
Read more articles on Saving & Investing.

A story on how to ripen your profits – Chris Mittelstaedt

Here is a story on how The FruitGuys came into existence and currently earning the dividends of ripened profits. This is a business roughly worth $10 million and is owned by Chris Mittelstaedt. Chris was lucky to have been born to an entrepreneur family. His father was a pilot too and from him Chris learnt that it is always essential and beneficial if one is able to keep an eye out to note the early indications for trouble.

With the rapid surge of the online market portals, the regional fruit delivery business of The FruitGuys went for a slump. Chris incurred a personal debt of around $100,000. It was then that he realized that it was important for him to focus on the macroeconomic perspective. He restructured his business and introduced a stringent credit policy, more variations in costs and designed a national expansion. He dealt with the massive crates of produce, made the deliveries personally and today, he is enjoying the fruits of his labor.

Within a decade of its launch, The FruitGuys got engaged with the operation that involved delivery of superior quality produce to over 3,000 businesses across the nation. There is also a conscious attempt to endorse wellness in the community. It involves building athletic centers at offices, helping the low-income communities or collaborating with the farmers.

If you dream to become a millionaire, your idea of entrepreneurship should be characterized with a proper vision, something that you believe in.

Written by srini on September 2nd, 2009 with no comments.
Read more articles on Immigrant Success Stories.