Variant Perception is a concept defined by Michael Steinhardt as a view that is materially different from the consensus and that you have a belief that it has an average probability of being correct.

For many, the fear of standing out negatively overrides their desire to stand out positively. By following the herd mentality, you are cushioned by the many views that are supporting the reasons for the fact that makes you comfortable. The problem is usually the case where valuation gets higher and as investors you are paying that comfortability for a premium with lesser margin of safety.

On the other hand, being a contrarian is lonely because you are going against the crowd for most of the time. They are usually slow, infrequent in nature and are an outcast by most standard which most people don’t quite understand at the beginning. You’ll get plenty of questions which will …