410 Introduction to Buying the Unloved
You might know the unpopular kid in school who grew up to outperform all the popular kids. It happens with mutual funds, too, which is why you should keep an open mind toward all funds. In this course, Morningstar shares some tips on how to go against the crowd and win.
What you will learn
- Morningstar's Unpopularity Contest
- Morningstar's Rules for Buying the Unloved
What do you know?
Introduction to Buying the Unloved
It can be hard to turn your back on a winner. Investors usually flock to those parts of the market with great returns. But chances are, those stellar returns won’t last forever. Sears is no longer the nation’s preeminent retailer, Seinfeld is no longer a top prime-time sitcom, and few of us are still walking around in double-breasted suits with ultra-wide ties.
Play against the crowd, though, and you just may catch a future trend today. Fund investors, as a group, have lousy timing. Most investors buy high and sell low, instead of the other way around. Opportunists therefore have the potential to profit by buying what everyone else is selling.
So here’s how to be an opportunist, the Morningstar way.
