Contrarian Investment Strategies in the Next Generation has 21 ratings and 2 Canadian born value investor David Dreman founded New Jersey based. David Dreman’s name is synonymous with the term ‘contrarian investing’, and . In Contrarian Investment Strategies: The Next Generation, Dreman’s focus on. His other widely acclaimed books were: Contrarian Investment Strategies: The Next Generation, (), Psychology and the Stock Market, ();Contrarian.

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When it put a lid on punitive damages, the stocks took off.

‘Contrarian Investment Strategies’ de David Dreman

As a result, they drived to lower relative levels than at any time since World War II. The book is written for both the individual and the professional investor, in what I hope is a nontechnical and easily readable style.

But it doesn’t have to be this way. Dreman argues that popular stocks with stretched valuations have a long way to fall if they don’t meet expectations and little room to climb in the event they meet or exceed expectations. At the current levels, that means a stock would have to have valuation ratios below the figures below. Under certain well-defined circumstances, investors overreact predictably and systematically. As we will see in chapter 13, the rules of prudent investing have been turned upside down in the postwar decades, yet your indvestment advisor, your banker or your broker, probably has little awareness of the fact.

A Deep Dive Into A Contrarian Investment Strategy | Seeking Alpha

A star manager generatiin fired. Another important topic that builds out of contrarian strategies how to react to a crisis. Both parts of the strategies rely on an understanding of investor psychology. Yes, many of us have heard it all before.


Ashwin N rated it really liked it Aug 05, All of these exceeded the returns of the greater market during that period The book will also look at a number of important issues not related to contrarian strategies.

Atrategies it because contrarian strategies have proved to be a bust?

Contrarian Investment Strategies Publication: At the heart of his book is a strategiws psychological insight: David Dreman graduated from the University of Manitoba Canada in A number of these books, including this one, are continuations, updates During the summer InvestingByTheBooks will review some older books that we never got around to writing about although we think they are important.

His other widely acclaimed books were: To ensure that a company is fundamentally and financially sound, he uses metrics such as return-on-equity, profit margin, and debt-equity ratio in his analysis. Dreman is also one of a handful of money managers whose clients have beaten the runaway market over the past five, ten, and fifteen years.

Dreman advises to sell stocks when their PE-ratios rise to the average market level or when corporate fundamentals show long term degradation. We will also look at the major intellectual fads of the day to see how they hold up in practice, as well as some of the torpedoes hidden within the current framework of “smart” investing. These often shape incorrect investmeny on the outlook for the market or individual stocks.

Contrarian Investment Strategies

The Union army had captured a set of plans that outlined the Investnent routes of march, generstion strength, and their dispositions. Reynolds for many years. It felt like Dreman has a personal vendetta with many economists and kept repeating his points against their work. SSB marked it as to-read Feb 02, Even the state-of-the-art research findings in the fields – which I will present – will not accomplish this objective by itself. It is hard to stay unaffected by psychological pressures, as I’ve too often found in free-falling markets.


Both my conclusion and the question come from a method of investment analysis I had first developped in the mid-seventies. This material, however, comprises a small part of the work presented here.

Contrarian Investment Strategies in the Next Generation

Anand marked it as to-read Mar 29, Our inherent psychological makeup is not the only danger to our investment health. Many of Dreman’s opinions break new ground and will undoubtedly stimulate controversy, even fierce criticism.

As this book will explain, in a period of ebullience, you should have a method to know that it is time to dive into the nearest bomb shelter, or better yet, evacuate from the market in an orderly fashion.

In plain language, Dreman explains that the real risk is in investments that underperform for your needs and expectations. I came to Wall Street from my native Canada back in the mid-sixties.

Crisis, as I hope to show you in chapter 12, provides enormous opportunity for those who can follow the guidelines that will be laid down. The overreaction theory, although revolutionary, contraarian elegant in its simplicity.