Many investors prefer comfort, chasing what is popular and loved, rather than pursuing what is out of favor. The markets do not reward comfort.

Whatever is newly expensive has two attributes: wonderful past returns and, in most cases, lousy future returns.

History teaches that when valuations are extreme, "mean reversion," a move towards historical norms, is likely. Once value stocks turn, the recovery can be fast and intense.

The best investment opportunities are often scary.

The most treasured asset in investment management is a steady hand at the tiller.

Diversify. But carve out 10 to 20 percent for the most unloved part of the market: emerging markets value.

Successful contrarian investing requires us to live with discomfort, for being "wrong" and alone. But bargains do not exist in the absence of fear.