In his books, David Dreman presents a proven strategy for investing while also addressing the psychological reasons that many investors fail. Contrarian Investment Strategies has ratings and 18 reviews. Ming Wen said : David Dreman’s Contrarian Investment Strategy should occupy the 3rd place. Contrarian Investment Strategies in the Next Generation has 21 ratings and 2 Canadian born value investor David Dreman founded New Jersey based.
|Published (Last):||10 March 2008|
|PDF File Size:||3.29 Mb|
|ePub File Size:||13.22 Mb|
|Price:||Free* [*Free Regsitration Required]|
My 20 years of investing has allowed me to retire at 55 if that is any indication and I have already said that this book has been the most influential of any I have read, so yes, value investing has worked for me.
Has it worked for me?
Goodreads helps you keep track of books you want to read. Dreman demonstrates how investors consistently overvalue the so-called “best” stocks and undervalue the so-called “worst” stocks, and how earnings and other surprises affect the best and worst stocks contrraian opposite ways. Jul 31, Christopher Pepper rated it really liked it Shelves: Phil rated it it was amazing Oct 04, One of the strongest sections of the book showed how value stocks weathered negative earnings surprises and leapt at positive surprises, while growth and concept stocks hardly budged at positive earnings surprises and plummeted on misses.
Dreman shows that low multiples over time leads to higher returns and that this is not the consequence of higher risks. Aditya Harite marked it as to-read Mar 29, Part 2 is a must read where Dreman rips efficient markets hypothesis to shreds by poring over the original research and running new studies.
And in the end, I never trusted the author enough to invest any real money in his strategy. His techniques have spawned countless imitators, most of whom pay lip service to the buzzword “contrarian,” but few can match his performance.
Amos Tversky and Daniel Kahneman’s “law of small numbers” – when too much faith has been put on too small sampling size.
Contrarian Investment Strategies: The Classic Edition
Dreman cuts through the clutter of prevailing investment fads and delivers a solid approach to investing based on his experiences and careful statistical research. Sep 24, Tirath rated it liked it. Will marked it as to-read May 27, A number of common investment strategies and practices on the financial markets are presented and discarded in a factual but entertaining way.
Pages with related products. Money Masters of Our Time. May 30, Jeffrey rated it it was ok.
Contrarian Investment Strategies in the Next Generation
All of these exceeded the returns of the greater market during that period I have no business relationship with any company whose stock is mentioned in this article. East Dane Designer Men’s Fashion. His Kemper-Dreman High Return Fund has been the leader since its inception in — the number one equity-income fund among all ranked by Lipper Analytical Services, Inc. Rob added it Oct 15, He emphasizes the importance of investor psychology, which he terms “the necessary link required to activate the contrarian strategies we will now examine.
The converse is true for unpopular stocks—which have a lot of headroom and less downside risk. Dreman recommends buying stocks when prices fall, the worse the panic the better.
Open Preview See a Problem? He also evaluated the likelihood that earnings would remain stable in the near future. The book is better written than many similar ones, despite the fact that a good chunk of the book dwells on what not to do versus how to play the contrarian investment strategy.
Individuals in the crowd are primitive beings. All in all, I believe the book remains as relevant today as it was in the mid’s, particularly as the IPO market gears up again, this time with social networking stocks.
Return to Book Page. I like to buy stocks when they are on sale.
Shashika marked it as to-read Nov 27, The more I read Dreman, though, the more I admire his thinking. The Classic Edition by David Dreman.
Contrarian Investment Strategies in the Next Generation by David Dreman
Such a great classic and simple book. Ashwin N rated it really liked it Aug 05, Why you should avoid Nasdaq “the market of the next hundred years” like the plague. There were manias and panics, include tech stock manias, in cnotrarian 60s and 70s.