The Profitability of Contrarian Investing
In the Intelligent Investor, Benjamin Graham introduces us to Mr. Market, a fickle fellow that at times behaves as a manic depressive; ... a demoralized Mr. Market will sell his shares for pennies on the dollar. The last three years has been marked by tremendous volatility in the Market. Caterpillar (CAT), a global leader in building equipment, has traded at $67.54 -$116.55 in the last 52 weeks alone.... but, is it possible for the intrinsic value of a financially strong, “wide-moat” company to shift so violently?
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