The Winning Investment Strategy A Top Value Manager Doesn’t Want You To Use

For nearly two decades, top value investor and columnist John Dorfman has been tracking a purely quantitative “robot portfolio” that has beaten the S&P 500 by about 12 percentage points per year. His advice: Don’t use it. In an interview with Wealth Track’s Consuelo Mack, Dorfman talks about why his robot approach isn’t suitable for the vast majority of investors. The strategy takes all stocks with market capitalizations of at least $500 million, eliminates those… Read More

Tricks for Spotting Neff-Type Bargains

In a recent column for Bloomberg, John Dorfman channels John Neff, who compiled one of the best track records ever while managing the Windsor Fund for more than three decades. “One of Neff’s techniques that I like is scouring the list of stocks that have reached 52-week lows,” Dorfmnan explains. “In his book ‘John Neff on Investing,’ Neff notes that some companies hitting new lows will have to endure ‘more dismal days.’ Others, though, are… Read More

Lowest of the Low-P/E Firms Post Big Outperformance

Numerous contrarian investment strategies have a track record of solid performance. But just how well — or poorly — do the most unloved stocks in the market fare? According to columnist and money manager John Dorfman, they have fared quite well in the past dozen years. In his Bloomberg column, Dorfman takes a  look at a virtual portfolio that, starting in 1999, would have invested in the 10 stocks with the lowest price/earnings ratios in… Read More

Dorfman: Time to Add Risk

Bloomberg columnist and money manager John Dorfman says it’s time for investors to take on more risk. Dorfman tells Bloomberg that investors shouldn’t let the lingering fears from the 2008 crisis impact their investment decisions going forward. He also talks about some of his top stock picks heading into the new year. [youtube=]  

“Smooth” Recoveries Rarely Occur, Says Dorfman

Growth in manufacturing activity and industrial production have slowed a bit recently, leading many to fear a double-dip recession is coming. But columnist and money manager John Dorfman — one of the few strategists who was offering optimism heading into the 2009 rally — is still optimistic. “One reason these figures don’t shake my confidence too much is that I’m old,” Dorfman writes in the New Jersey Star-Ledger. “Having lived through nasty recessions in the… Read More

Dorfman Finding Value in Big Names

Money manager and columnist John Dorfman, one of the few strategists who was offering optimism heading into the 2009 rally, is still seeing plenty of opportunities in stocks. Dorfman tells Bloomberg that he doesn’t think we are heading into double-dip recession or depression. With that in mind, he says some big names, including Microsoft, are priced very attractively. [youtube=]

Dorfman on Strategy, and Why Stocks Are Still Cheap offers an interesting interview with Bloomberg columnist and money manager John Dorfman, who called the market rally and says stocks are still cheap. “I think the stock market was undervalued even before the recent sell off,” Dorfman tells Jacob Wolinsky. “Yes the market P/E is around 18 but only because it is based on trough earnings. Now, with the correction, valuations have come down a bit. The field is always changing and there are… Read More

Dorfman: Sectors for the Recovery

Is the recovery real? Yes, says John Dorfman. In his Bloomberg column, Dorfman — who was on target in calling the start of the stock market rally — says improvements in auto sales, existing home sales, and third-quarter gross domestic product are among many factors that point toward the recovery being for real. Given that position, Dorfman focuses on three sectors that he says usually lead in the early stages of recoveries: energy, materials, and… Read More

Dorfman Sees Rally Continuing for Several Months — at Least

Money manager and Bloomberg columnist John Dorfman — who was ahead of the curve in forecasting the market rebound — says he thinks the rally will continue well into next year. “I feel fairly confident that the gains will chug along through at least the first quarter of 2010,” writes Dorfman. “In the past century, there have been 11 violent declines in the stock market, including the 2008-2009 disaster. In nine of the 10 previous… Read More

Dorfman Adjusts for Post-Recessionary Climate

Thunderstorm Capital Chairman and Bloomberg columnist John Dorfman says the market and economy should continue to trend upward at least into next year. Dorfman says he’s emphasizing industrial cyclicals, materials stocks, and energy stocks in his portfolios, and is cutting back on utilities and healthcare stocks, two areas he had focused on during the downturn. He also offers some interesting thoughts on where tech stocks might be headed, and gives a couple stock picks. [youtube=]