SRI practitioners say that the contrarian focus on long-term prospects and overall health of a company suggest yes, while its focus on timing suggests maybe no.
Contrarian investing capitalizes on human frailty--namely, that people tend to overreact. In the marketplace, investors often flee companies experiencing relatively minor problems even though they are sound from a long-term perspective. Contrarian investors take advantage of such short-sightedness by buying the stocks when they are undervalued, anticipating that their valuation will rise when the market recognizes their worth more accurately.
Free SRI Mutual Funds Kit"Only those who will be sellers of equities in the near future should be happy at seeing stocks rise," said Warren Buffet, widely considered one of the best investors alive, explaining his contrarian philosophy. "Prospective purchasers should much prefer sinking prices."
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