The 52-Week Low Formula: A Contrarian Strategy that Lowers Risk, Beats the Market, and Overcomes Human Emotion
Successful investing is based on simple principles. Buy low, sell high. Make good decisions based upon good information. Try to eliminate noise and emotional confusion. Mitigate risk.Yet, too often, investors fall into familiar traps that lead to suboptimal results. Herding, emotional investing, following the trends instead of the data, taking unnecessary risks— all of these have a common root cause: The lack of a disciplined system for determining investment opportunities.InThe 52-Week Low Formula: A Contrarian Strategy that Lowers Risk, Beats the Market, and Overcomes Human Emotion, Luke L. Wiley, CFP®, examines the formula filters behind selecting the outstanding companies and great investment opportunities that are being overlooked, resulting in bigger gains, reduced risk, and faster recovery following economic downturns.Using his own experiences, deep research, and a healthy degree of skepticism as a guide, Wiley describes what he looks for in a company, what requirements must be met, and how those criteria came into existence. He also presents several case studies to examine companies that were trading around their 52-Week Lows, overcame obstacles, and provided solid investment returns. His book is based on the idea that five simple yet critical filters can lead to mitigating downside risk while achieving market outperformance.The companies that positively make it through these filters, and that are found to be in the midst of a skid, are the ones that are ripe for investment yet continue to be overlooked and unloved by Main Street to Wall Street.The 52-Week Low Formulais a must read for investors, money managers, and financial advisors who want to break through suboptimal conventional strategies and avoid common mistakes. It presents a new but timeless strategy and mindset that should greatly help investors lower risk while outperforming the market.