Chess Discussed in the blog "The Zen of Investing"

'"Rabbit hole investing is much more than just buying assets when they are hated and selling them when mania surrounds them, as is the behavior people tend to associate with contrarian investors. In addition to implementing that aforementioned strategy when reality bears out a good risk-reward setup, I also seek out investment opportunities that no one is even considering, which wouldn't fit into the "contrarian box" at all. Rabbit hole investing has more similarities to playing chess than it does to contrarian investing. The only reason I use the word "contrarian" is because nobody would ever understand what I meant by rabbit hole investing. It is said that child chess prodigy Bobby Fischer would think at least seven steps ahead when playing a game of chess before committing to a move. To be really successful in investing, one must do the same.

"When I see mania driving an upward trend that is based upon deception and manipulation, thanks, but no thanks. I'd rather miss out on some gains than be exposed to the risk that will inevitably occur when people discover they've been deceived weeks or months later. I'd rather position my portfolio in assets that I know will profit phenomenally when reality bubbles to the surface seven steps later. Like a good chess player, a good investor positions his or her assets not for the immediate payoff but for the pay off down the road that is inevitable. It's worked for me in the past, it's worked for me now, and I'm confident it will work for me in the future."

It's rabbit hole investing, thinking like a chess player, call it what you may. It works and I'm sticking to it.'

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