Wilbur Ross is a multi-billionaire and legendary investor. He made his money by buying hated assets – like steel when nobody was touching it and Japanese banks when they were saddled with debt. (Sound familiar?)
So what is he buying now? Anything that has been hurt by high oil prices. He just purchased an Indian airline, for example.
Mr. Ross is a confirmed contrarian who likes to run ahead of the Wall Street pack. He loves to buy when the market knocks down the prices of assets and companies he thinks will bounce back. Banks, insurance companies, mortgage companies, home builders, and some retail companies are the ones now getting killed by the market.
If you think we’ll have a thriving real estate market again (and it’s only a matter of time), mortgage companies and home builders would be good investments. Choose the ones that have been punished unfairly by the market… that haven’t sold off their revenue-producing assets… that have management who weren’t reckless but simply got caught up in a falling market. In other words, you still have to do your homework and pick the best of the bunch.
Because you have a little less money than Mr. Ross, instead of investing in these companies right away, keep an eye on them. When their share prices begin to go up, pounce. I want you to see the bottom rather than try to guess when it’ll come. You’ll be leaving only a little money on the table… and it’s a much safer way to invest.[Ed. Note: When you see a bunch of investors looking in one direction, look the other way. As contrarian investor Andrew Gordon has discovered, going against the grain can often be your best chance to profit. Get Andrew’s recommendations for low-risk investments with high profit potential right here.]