Brazilian Billionaire: “When It’s Bad, I Buy”

Luiz Alves Paes de Barros has made a killing by “wagering on stocks almost no one else seemed to want,” says a recent Bloomberg article. The sixty-nine-year-old is known as the “anonymous billionaire” for his under-the-radar but hugely successful investments. Most recently, during one of the worst recessions in Brazil’s history, his company Alaska Investimentos Ltda. bet big on the floundering retailer Magazine Luiza SA which, according to the article, “has surged more than 1,000… Read More

Yes, Even In This Market You Can Find Contrarian Picks

Many of history’s greatest investors have had a contrarian streak, and in a recent column Validea CEO John Reese took a look at how and why go-against-the-crowd gurus like Steven Romick and David Dreman have built portfolios of unloved stocks. “Some stocks are unloved because the companies behind them are just dogs, and everybody knows it. Key to a contrarian approach is thus separating the stocks that are unloved because of real, long-term problems from those… Read More

Hulbert: Fear Is Encouraging

In his latest column for MarketWatch, newsletter-watcher Mark Hulbert of Hulbert Financial Digest makes an interesting observation about fear and contrarian investing, one that echoes the findings of one of the great gurus we follow, Martin Zweig. Writing about the recent Las Vegas Money Show, Hulbert says that sentiment among the conference’s presenters was decidedly conservative and measured. “More often than not, they devoted their talks and workshops to managing risk and avoiding further losses… Read More

Dreman: Yes, It’s a Depression — So Buy

One of the investing world’s pre-eminent contrarians, David Dreman, writes in Forbes that the U.S. is indeed in a depression — not a recession — but says it’s also a good time to put money to work in the stock market. “Let’s not sugarcoat what’s going on,” Dreman writes. “We are in a depression, not a recession. It continues to devastate industry after industry like a wild forest fire leaping across the clearings.” Dreman says… Read More

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’s 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,… Read More