If main stream thinking would lead to financial freedom – wouldn’t there be many more financially free people? Most of us are taught to go to school – get a good job and climb up the corporate ladder. How many that have followed that path are financially free? It is hard to tell, because there are many different definitions of financial freedom. If I were to make a guess – I would guess that fewer than 5% of the people in the U.S are financially free. I would also guess that very few of those became financially free by climbing the corporate ladder.
I submit that your chance of becoming financially free employing mainstream thinking is fairly slim. If we can agree on that fact, then the converse must be true. In other words, your chances are greatly improved by going against the grain or thinking differently than the masses. Now, that doesn’t mean that you will become financially free, but your probability of success is increased.
Since I realize this fact and believe it I am constantly seeking words of wisdom from the contrarians. A contrarian is someone who takes the opposite position or attitude. An investor who buys stock when most others are selling is a contrarian. How else can you buy low and sell high? Stocks are only at their lowest point when no one wants to buy. The real estate market was red-hot in 2004, because everyone wanted to buy or trade up. Contrarians sold and are renting now.
Some of my favorite contrarians are:
- Jim Puplava, Peter Schiff – Money Managers
- Marc Faber, Jim Rogers – Investors
- Nouriel Roubini – Economist
I read these people often are regularly.