Eugene Fama and Kenneth French propounded the ''Contrarian Investment Strategy'' which requires the investor to embrace stocks whose prices are in the dumps because they have fallen out-of-favour with most other investors-being greedy when others are fearful and being fearful when others are greedy. This is in tandem with the secret of successful investing which requires an investor to buy low and sell high.
Warren Buffett, under the tutelage of his mentor, Benjamin Graham, imbibed this principle. He, however, modified and christened it ''Selective Contrarian Strategy''. While the traditional contrarian strategy does not consider the long-term fundamentals of the company to be invested in, selective contrarian strategy advocates investing in low-priced companies that have long-term economics that can make their prices soar in the future.
Warren amassed stupendous wealth by taking advantage of the ignorance of unscrupulous investors in the capital market. Templeton described himself as a ''Philanthropist'' because he was buying from people ( when they sell out of fear), and selling to them (when they buy out of greed). What a philanthropist!
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