Synopses & Reviews
David Dreman, chairman and managing director of Dreman Value Management, LLC, is one of the most successful and influential investment managers in history, and his name is synonymous with contrarian investing. In this major revision of his investment classic, which Warren Buffett called “that rarity—an extremely readable and useful book that will be of great value both to the layman and the professional,” Dreman introduces vitally important new findings in psychology that explain why the stock market is inescapably given to bubbles, panics, and periods of high volatility. He also shows how we can use these findings to reliably profit from market errors, crash-proof our portfolios, and earn market-beating long-term returns.The need for these keen new insights and his powerful contrarian strategies has never been more urgent. The market crash of 2007-2008 left no doubt that there are glaring flaws in the theory underlying all of the other prevailing investment strategies—the efficient market hypothesis—as well as in the long-accepted theory of risk. These twin theories, and all of the popular investing strategies that are based on them, fail to account for major, systematic errors in human judgment that the powerful new psychology research explains, such as emotional overreactions and a host of mental shortcuts in decision-making that lead to wild over- and undervaluations of securities as well as fundamentally flawed assessments of risk. Dremans contrarian strategies not only account for these dangerous psychological effects but allow investors to take advantage of them. Dreman presents a breakthrough new theory of risk and introduces vital findings about the hidden dangers of high-speed trading and its role in volatility; he also delves into the pernicious risk of flash crashes as well as how to prepare for inflation.Updating all his signature charts of market movements and stock valuations that prove the remarkable power of his contrarian strategies, he shows how the strategies would have optimized returns during the “lost decade” that culminated in the 2007-2008 crash and would have positioned investors for market-beating returns in the recovery. Enhancing his core methods for choosing stocks with a number of new techniques developed over the last decade, he shows why the “best” stocks are consistently overvalued while the so-called worst, contrarian stocks are undervalued, and he lays out his proven and simple rules for avoiding the pitfalls and spotting the bargains.Based on breakthrough research and showing for the first time how the new psychological findings can be directly incorporated into investing strategy, this thoroughly revised edition of one of the most influential books on investment is an essential addition to every investors arsenal.
Review
Marshall Loeb editor, Columbia Journalism Review; Former Editor, Fortune magazine David Dreman has written one of those rare, original books on the market that appear every generation or so. Powerful, profound, and extremely well documented, it provides totally new strategies for investing in the 1990s and beyond. Martin Edelston editor, Bottom Line/Personal Lots of people call themselves contrarians, but David Dreman is the real thing. His shrewd strategies put you far ahead of conventional wisdom. This new classic is easy and valuable reading for anyone interested in beating the market. James W. Michaels Editor, Forbes magazine David Dreman shows you how to make psychology -- both yours and the market's -- work for you, not against you. A. Michael Lipper Lipper Analytical Services, Inc. There are relatively few good money managers or good writers on investments. David Dreman is both. In Contrarian Investment Strategies: The Next Generation, Dreman's focus on the understanding of "risk" should free investors from the mathematical traps of so-called risk measurement. In plain language, Dreman explains that the real risk is in investments that underperform for your needs and expectations. This is a great book for all investors, laymen and professionals alike. Sandra Ward Barron's Beating the S&P 500 consistently. A mutual-fund fantasy? A dream, perhaps. Well, in a way, yes: Dreman it is -- David Dreman, chairman of Dreman Value Advisors, and his Kemper-Dreman High Return fund delivering as advertised. Better still, the best is likely yet to come.
Review
andlt;divandgt;"David Dreman is known on Wall Street as a contrarian, a label that fails to
Review
and#8220;David Dreman is known on Wall Street as a contrarian, a label that fails to appreciate his deep knowledge of the market and research into investor psychology. In andlt;Iandgt;Contrarian Investment Strategies: The Psychological Edge andlt;/Iandgt;Dreman lays bare the deficiencies of the efficient market hypothesis, the investment rationale that states stock prices incorporate all known information. He also provides decades worth of data to show the woeful inaccuracy of analysts' forecasts. With the knowledge that the Street is marching to a flawed drumbeat, Dreman offers advice on how to react when markets misprice assets. Dreman has made a career of leaning heavily against the prevailing wind and for the most part, been highly successful. For those wary of following the herd, Dreman's thinking is revealing.and#8221; and#8211;Hebert Lash, Correspondent, Reuters
Synopsis
A major revision of David Dreman's investing classic, showing investors how to bullet-proof their portfolios and earn strong returns.
Synopsis
In this major revision of his investment classic, one of the premier investment managers introduces vitally important new findings in psychology that show why most investment strategies are fatally flawed and his contrarian strategies are the best way to beat the market.andlt;BRandgt; andlt;BRandgt;The need to switch to a new approach for investing has never been more urgent. The Crash of 2007 revealed in dramatic fashion that there are glaring flaws in the theory that underlies all of the prevailing investment strategiesand#8212;efficient market theory. This theory, and all of the most popular investing strategies, fail to account for major, systematic errors in human judgment that the powerful new research in psychology David Dreman introduces has revealed, such as emotional over-reactions and a host of mental shortcuts in judgment that lead to wild over and under-valuations of stocks, bonds, and commodities and to bubbles and crashes. It also leads to horribly flawed assessments of risk.andlt;BRandgt; andlt;BRandgt; Dreman shows exactly how the new psychological findings definitively refute those strategies and reveals how his alternative contrarian strategies do a powerful job of accounting for them. He shows readers how by being aware of these new findings, they can become saavy psychological investors, crash-proofing their portfolios and earning market beating long-term returns. He also introduces a new theory of risk and substantially updates his core contrarian strategies with a number of highly effective methods for facing the most pressing challenges in the coming years, such as greatly increased volatility and the prospect of inflation. This is every investorand#8217;s essential guide to optimal investing.