--- title: Podcast Review | Adam Karr on Contrarian Investin‪g‬ by Masters in Business description: Podcast Review | Adam Karr on Contrarian Investin‪g‬ by Masters in Business image: https://blog.naos.com.au/hubfs/Business%20Mind_11%20Feb.jpg --- ##### [Subscribe to NAOS NEWS & Insights](https://www.naos.com.au/subscribe) [![](https://assets.website-files.com/5b3d7f5582ecae7f1e026ce2/60be9de099c2716fb2efb4a7_naos.svg) ![](https://assets.website-files.com/5b3d7f5582ecae7f1e026ce2/640666256ede5e8ae8e33da0_B-Corp-Logo-Black-RGB.png)](https://blog.naos.com.au/) [Home](https://www.naos.com.au) About [About NAOS](https://www.naos.com.au/about-our-firm) [Our Team](https://www.naos.com.au/about-our-firm#people) [Why invest with NAOS](https://www.naos.com.au/about-our-firm#why-invest) [Our Investment Beliefs](https://www.naos.com.au/about-our-firm#beliefs) [Our Investment Process](https://www.naos.com.au/about-our-firm#how-we-invest) Listed Investment Companies [NCC: NAOS Emerging Opportunities Company Limited](https://www.naos.com.au/ncc-naos-emerging-opportunities-company-limited) [NSC: NAOS Small Cap Opportunities Company Limited](https://www.naos.com.au/nsc-naos-small-cap-opportunities-company-limited) [NAC: NAOS Ex-50 Opportunities Company Limited](https://www.naos.com.au/nac-naos-ex50-opportunities-company-limited) [Our Listed Investment Companies](https://www.naos.com.au/our-lics-compare-our-lics) [How to Invest](https://www.naos.com.au/our-lics-compare-our-lics#how-to-invest) Private Opportunities [NAOS Private Opportunities Fund](https://www.naos.com.au/npof-naos-private-opportunities-fund) [NAOS Ideas Network](https://www.naos.com.au/naos-ideas-network) E.S.G. 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The central theme of his investing style is staying rational, running counter to the prevailing market wisdom and the sentiment of the herd. For Karr, whose investing passion began cleaning the floors of banks and observing the pages of the Wall Street Journal during nightshifts, investing success is boiled down to four key principles:   1. Thinking like a business owner 2. Long term mindset 3. Contrarian 4. Independent thinking   His focus is on “intrinsic value”, not just “price to book” but the long-term business DNA that will generate meaningful returns. Karr notes several examples where his investment team noticed the herd was running in the wrong direction or in Warren Buffet parlance: the party was about to turn into “pumpkins and mice”. The first clear example was in the 1990s when Japan was 45% of the world index, of which Orbis had “zero exposure…on the view that it was extreme and grossly overvalued”. Then to the “dot-com bubble” of 1999/2000, which Orbis was “on the other side of”, fearing a pullback that did eventuate.   When asked about the current market, Karr notes some initial signs of euphoria, when referencing the John Templeton line: “Bull markets are born on pessimism, grow on scepticism, mature on optimism, and die on euphoria”. He notes the high levels of activity in the U.S. SPAC market, the “IPO frenzy”, the level of retail engagements, “margin debt levels”, the “Robin Hood tribe” and even the S&P equities trading at ten times revenue.   Karr is of the view that markets are inherently cyclical and as the sentiment that “value investing is dead” grows in popularity, it's actually a characteristic of the “late stages in the cycle”. Finally, Karr discusses his change in style that came later in his investing career. While early on he focused on distressed turnaround investing, looking for “hard assets and downside cash flow”, he later focused on the returns generated by “phenomenal companies that compound over time”. [Link to podcast](https://podcasts.apple.com/au/podcast/masters-in-business/id730188152?i=1000505445292)   ###### [Podcast & Book Reviews](https://blog.naos.com.au/podcast-reviews/topic/podcast-book-reviews) ###### Share this post ### Comments ##### NAOS Asset Management ![](https://uploads-ssl.webflow.com/5b09df434e359cb73f2f80b5/5b09df434e359c362d2f81c4_location-icon-white.svg) Level 34, 25 Martin Place Sydney NSW 2000 ![](https://uploads-ssl.webflow.com/5b09df434e359cb73f2f80b5/5b09df434e359c121c2f81c8_mail-icon-white.svg) [enquiries@naos.com.au](mailto:enquiries@naos.com.au?subject=NAOS%20Website%20Contact) ![](https://uploads-ssl.webflow.com/5b09df434e359cb73f2f80b5/5b09df434e359ce0f62f81c9_phone-icon-white.svg) +61 2 9002 1576 ##### Our Listed Investment Companies [ASX: NCC - NAOS Emerging Oportunities Company Limited](http://www.naos.com.au/ncc-naos-emerging-opportunities-company-limited) [ASX: NSC - NAOS Small Cap Opportunities Company Limited](http://www.naos.com.au/nsc-naos-small-cap-opportunities-company-limited) [ASX: NAC - NAOS Ex-50 Opportunities Company Limited](http://www.naos.com.au/nac-naos-ex50-opportunities-company-limited) [NAOS Private Opportunities Fund](https://www.naos.com.au/npof-naos-private-opportunities-fund) [Listed Investment Companies](http://www.naos.com.au/our-lics-compare-our-lics) [Share Registry](https://boardroomlimited.com.au/) [Corporate Governance](http://www.naos.com.au/corporate-governance) ##### More Links [Privacy Policy](http://www.naos.com.au/privacy-policy) [Terms & Conditions](http://www.naos.com.au/terms-conditions) ##### Follow NAOS [![](https://uploads-ssl.webflow.com/5b3d7f5582ecae7f1e026ce2/5b3d7f5582ecae7e51026d27_twitter-icon-white.svg)](https://twitter.com/naosassetmgmt) [![](https://uploads-ssl.webflow.com/5b09df434e359cb73f2f80b5/5b09df434e359c11092f818c_facebook-icon-white.svg)](https://www.facebook.com/NAOSAssetManagement) [![](https://uploads-ssl.webflow.com/5b3d7f5582ecae7f1e026ce2/5b3d7f5582ecae133c026dca_Group%20261.svg)](https://www.linkedin.com/company/naos-asset-management) [![](https://uploads-ssl.webflow.com/5b3d7f5582ecae7f1e026ce2/5bf6115a4ae34255e68089e1_Asset%201Chart4.svg)](https://www.instagram.com/naos_asset_management/) Join our investment community. 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