The great science writer Isaac Asimov once said that the most exciting phrase in science isn’t “Eureka!”—but rather, “That’s funny…”
He believed this understated reaction sparked more discoveries than grand moments of inspiration. The same holds true in equity investing. Often, the most profitable insights emerge not from chasing consensus—but from pausing to explore what doesn’t quite make sense.
Most investors seek reassurance. They look for research that confirms their beliefs, follow analysts who echo their views, and prefer narratives that feel familiar. This is human—but it’s also limiting.
But here lies the problem: if everyone is looking at the same obvious opportunities and reaching similar conclusions, where exactly is the edge?
If a stock idea has become widely accepted, its upside is likely priced in. The real edge lies in noticing anomalies that others overlook.
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How Indian IT first looked ‘funny’
Take India’s software services boom in the 1990s. When Infosys first went public, the very concept seemed bizarre — how could a company based in Bangalore possibly provide technology services to American and European corporations?
The prevailing wisdom held that complex software work demanded close proximity to clients and deep cultural familiarity—things Indian firms supposedly lacked. But a few investors paused to ask, “That’s funny… why are global clients sending more work to these companies in Bangalore?” That question led them to uncover a scalable, cost-efficient business model that defied conventional frameworks—and rewarded early believers handsomely.
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The most valuable insights often begin when data breaks your mental model. Maybe a company reports growth while peers flounder. Perhaps a declining industry keeps throwing off cash. Or a management team makes decisions that seem contradictory.
Most brush off these quirks as flukes or bad strategy. But some of these outliers point to shifts in customer behaviour, new tech cycles, or competitive dynamics not yet priced in.
Not every puzzle pays
Of course, not every oddity signals opportunity. Many are explained by mismanagement or randomness. The key is not to pounce on every deviation—but to develop the habit of thoughtful inquiry.
A good investor asks: Why is this company’s performance diverging from that of its peers? What might management know that isn’t obvious from public information? Could there be structural changes in this industry that conventional analysis is missing?
This way of thinking requires intellectual humility. You have to accept that your understanding might be incomplete—and that markets can behave in ways that seem strange at first but later make sense. It means letting go of the need to always feel certain and being open to asking difficult questions instead. Being a contrarian isn’t just about going against the crowd—it’s about being right when you do.
In practical terms, this means building a few smart habits. When you look at a company’s results, don’t just focus on the numbers you expected—pay attention to what surprises you. When reading what management says, look for things that don’t line up with what’s happening in the industry. When prices move in a way that challenges your view, don’t explain it away—look deeper.
The aim isn’t to reject all popular opinions or chase every unusual pattern. It’s to pause when something doesn’t quite add up and ask: is there something important I’m missing?
In today’s fast-moving market, where obvious opportunities vanish quickly, the best insights often come from those willing to explore what others ignore. So the next time you catch yourself thinking, “That’s funny…”, don’t brush it off. That small moment of doubt could lead to your next big breakthrough.
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Dhirendra Kumar is founder and chief executive office of Value Research, an independent investment advisory firm