Dreman Strategy Making Big Comeback

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This week’s issue looks at the David Dreman-inspired Contrarian Investor strategy, which is up more than 25% this year and more than 40% in the past three months. Below is an excerpt from the newsletter along with several top-scoring stock ideas based on the Dreman investment strategy. Taken from the July 24, 2009 issue of The… Read More

Dreman “Terrified” of Bonds

Famed contrarian investor David Dreman says inflation concerns have him “terrified” of bonds and seeing good times for stocks and real estate. “I think we’re going to have some of the worst inflation, with all the printing presses around the world running 24/7,” Dreman told Reuters. “Probably the two worst investments over the past two, three years have been stocks and real estate. They could be the best investments two or three years out.”

The Contrarians’ Revenge?

MarketWatch recently had an interesting piece on contrarian investment strategies, highlighting the fact that many of the contrarian managers who were hit hard last year are now netting some strong bounce-back gains. “As the market has bounced back in recent weeks, [several] contrarian-style funds, with their bargain-minded ways, have been outperforming,” writes MarketWatch’s Sam Mamudi, discussing well-known contrarian managers like David Dreman, Bill Miller, and Marty Whitman. “Dreman Contrarian Large Cap Value is up about… 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

Dreman on Why to Buy Bank Stocks, and How the Credit Crisis has Hurt Value Investors

Showing the contrarian bent that made him one of the most successful investors of all time, David Dreman says it’s time for investors to jump into banking stocks. “They will come back at some point. It’s essential to the economy,” Dreman tells Q1 Publishing. “We need a banking system we’re confident in. We can’t work without a banking system. We can patch it up for a while and the government will probably take some stake… Read More

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… 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

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… Read More

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… Read More