Dreman & Dividends: Finding Value in The Market’s Unloved

One of the hardest things to do as an investor is go against the grain. Being a contrarian by investing in stocks that no one else wants to touch with a ten-foot pole is difficult, especially in markets like this. But most good value investors, including Warren Buffett, David Dreman, John Neff and others use strategies to uncover value where no one else wants to look. The Dreman strategy, in particular, has a deep bias for unloved, out-of-favor stocks. To identify those types of companies, the approach uses four price-focused variables: Price-Earnings Ratio, Price-Cash Flow Ratio, Price-Book Ratio and Price-Dividend […]

The Dreman Strategy: How to Turn Others’ Fears into Your Profits

In my new investing book, The Guru Investor: How to Beat the Market Using History‚Äôs Best Investment Strategies, I outlined the investment approaches of ten highly successful long-term investors. One of the individuals I highlight is the well-known contrarian, David Dreman. Dreman is chairman of Dreman Value Management and a longtime Forbes magazine investment columnist. I hope you enjoy the following excerpt from Chapter 5 of The Guru Investor, which discusses who David Dreman is, what his strategy consists of, and how to best implement it. I will be publishing a follow up to this piece in which I will […]

Bogle, Siegel, O’Shaughnessy: Where Do They Have Their Own Money?

While they have been hit hard over the past year, many of the world’s top investors aren’t shying away from the stock and bond markets, writes The Wall Street Journal’s Eleanor Laise. In fact, many have been snatching up bargain stocks and bonds for their own personal portfolios while most investors have been fleeing the market. “A sampling of high-profile industry veterans, academics and brokerage-firm chiefs reveals that many are hanging on to holdings battered by last year’s market slide and busily hunting down new opportunities, particularly among bonds and beaten-down value stocks,” Laise explains “And they’re generally upbeat about […]

Dreman: Now Is One of Greatest Buying Opportunities of Your Life

In Forbes new “2009 Investment Guide” issue, contrarian specialist David Dreman says that now is the time to buy stocks. “Do not flee the market by selling your quality stocks,” Dreman writes. “Yes it’s the worst bear market since 2000-02, and stocks are trading at valuations not seen in decades, but equities will come back.” Dreman has been pretty bullish in recent months, but he now appears to be a making a major bull call that goes beyond specific sectors or stocks. “There is almost an endless choice of quality businesses trading at or near liquidation prices,” he says, telling […]