David Dreman

David Dreman

Postby winston » Thu Feb 02, 2012 7:09 am

Dreman: Best Values in 30 Years

Contrarian guru David Dreman says he’s finding stocks as cheap as they’ve been at any time since 1982.

Dreman tells Forbes’ Steve Forbes that he’s bullish because valuations are low and companies have good cash flows and financial positions that are as strong as they’ve been in years. (A tip of the cap to Zack Miller of Tradestreaming.com for drawing our attention to the interview.)

He says investors have been running from stocks because they fear volatility and they fear the economy will be in a depression-like malaise forever. He doesn’t see that happening, and thinks all the fear has created numerous opportunities.

Dreman also talks a bit about portfolio management, saying he keeps a diversified portfolio of 50 to 60 stocks, with all the stocks weighted similarly.

He adds that he buys stocks below the market valuation multiple, and always sells when it reaches the market average multiple, though he may sell sooner on “very bad news”.

One change he’s made since the financial crisis: He’ll sell stocks of companies that post losses, even a short-term loss, and won’t buy them again until they are turning a profit.

http://theguruinvestor.com/2012/02/01/d ... -30-years/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: David Dreman

Postby winston » Fri Nov 02, 2012 10:09 pm

Contrarian Investing By Dr. Steve Sjuggerud

Last week, I had lunch with one of my investing heroes… David Dreman.

A few moments after lunch, I introduced him to speak to a crowd of 400 or so investors.

Today, I'll share with you why Dreman is a legend to me… and what he thinks right now…

Dreman is a legend because of what he did in 1979. I explained it as I introduced him at an investment conference. Here's what I said:

David Dreman literally wrote the book on contrarian investing strategies. Consider this: His book called Contrarian Investment Strategies came out in 1979…

You have to realize, when the book came out, stocks had done nothing for a dozen years. David said that it was time to buy stocks – that they were incredibly cheap.

I bet David and his mom were the only people to buy the book… NOBODY wanted to buy stocks back then.

But he got it exactly right. The greatest two decades in the entire history of stocks was from 1979 to 1999. And Dreman, more than anyone else, called it.

I love that Dreman didn't listen to what anyone else had to say. In 1979, he trusted his own research.

He understood that stocks were dirt-cheap and out of favor. After a dozen years of poor performance in stocks, investors were busy buying gold and bonds and avoiding the stock market. Sound familiar to today?

What's Dreman saying today?

These days, he's fearful of inflation, and he believes stocks are the place to have your money… He's been writing a column for Forbes for 30 years. Here's what he said in his most recent column:

Smoldering inflationary fires will burst into an inferno once the unemployment rate falls below 7.5%, if not sooner. In this environment, good stocks, not Treasuries, are the place to be.

What's he doing with money now?

Given my bullish views, I am in buying mode… We will undoubtedly have more scares and volatility ahead, but if you've taken an ultraconservative ­approach to date, it's time to revamp your assets in preparation for rising ­inflation and interest rates.

Dreman wrote a white paper on "The Case for Inflation" in 2011. In it, he said:

We think it's unquestionable that inflation is in our future for some time… it's just as certain that a portfolio of great companies will protect an investment portfolio from the challenges to come.

You can read Dreman's white paper on inflation here.

Dreman outlines his investment philosophy in his presentation here.

And if that's not enough Dreman for you, this year, he put out a new version of his classic book Contrarian Investment Strategies. It's here.

Dreman doesn't follow the crowd. He is the ultimate contrarian.

And right now, this contrarian is expecting inflation, and he believes high-quality stocks (like cigarette giant Altria and banking giant Wells Fargo) are the best place to be positioned.

I suggest you follow his lead…

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am

Re: David Dreman

Postby winston » Wed May 20, 2015 7:34 am

‘Smart Money’ Stocks: David Dreman (Dreman Value Management)

Next up is legendary contrarian value investor David Dreman. If you are a serious student of the markets and you’ve never read Dreman’s classic Contrarian Investment Strategies … well, let’s just say you might not be as serious as you thought you were.

Dreman was one of the first big-name value investors to take a systematic approach to incorporating market psychology into his methods, and he is a dependable source of solid, sober advice. Dreman’s firm manages the Dreman Contrarian Small Cap Value Fund (MUTF:DRISX) as well as separately managed accounts.

So, what has Mr. Dreman been buying?

One stock he’s been trading fairly actively is Spanish banking giant Banco Santander, S.A. (ADR) (NYSE:SAN). Dreman initially purchased Santander in 2010 and has grown his share count from 111,820 shares to 631,135 as of last quarter. I’m not surprised at all to see Dreman buying Santander. Financial stocks make up fully 29% of his portfolio, and Spanish stocks are some of the cheapest in the world.

Another interesting addition, particularly since the sector has been under pressure of late, is diversified medical REIT Medical Properties Trust, Inc. (NYSE:MPW). Dreman bought 672,805 shares last quarter at an average price of $14.85. Today, shares trade hands at less than $14, so you can enjoy a better price than Dreman while also collecting the sweet 6.4% dividend.

Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118522
Joined: Wed May 07, 2008 9:28 am


Return to Market Gurus

Who is online

Users browsing this forum: No registered users and 5 guests