David Dreman Quotes

David Dreman Quotes

Analysts have always been overly optimistic.

This win is very helpful in the litigation scene. This is a case that a lot of other states were watching.

One of the big problems with growth investing is that we can’t estimate earnings very well. I really want to buy growth at value prices. I always look at trailing earnings when I judge stocks.

Investors repeatedly jump ship on a good strategy just because it hasn’t worked so well lately, and, almost invariably, abandon it at precisely the wrong time.

Nobody beats the market, they say. Except for those of us who do.

Experience teaches us that when “everyone” comes to the same conclusion, that conclusion is just about always wrong.

The [price-to-earnings ratio] on the S&P and technology stocks, in particular, is enormously high.

Demanding immediate success invariably leads to playing the fads or fashions currently performing well rather than investing on a solid basis. A course of the investment, once charted, should be given time to work out. Patience is a crucial but rare investment commodity.

Whenever you get some kind of natural disaster, the best thing is to stay on the sidelines for the first couple of days. We’ll see higher oil prices from here on in. Demand is simply outstripping supply.

Bank One has got one of the best credit card divisions, … The perception of investors is that financial services stocks are affected by interest rates and they’re not.

I buy stocks when they are battered. I am strict with my discipline. I always buy stocks with low price-earnings ratios, low price-to-book value ratios and higher-than-average yield. Academic studies have shown that a strategy of buying out-of-favor stocks with low P/E, price-to-book and price-to-cash flow ratios outperforms the market pretty consistently over long periods of time.

Sullivan took a company that was really scandal-ridden, and he has opened it up. On the other hand, will he pull off all sorts of new major products like Greenberg did? It’s really hard to say

Bank One has got one of the best credit card divisions, … The perception of investors is that financial services stocks are affected by interest rates and they’re not.

There’s a lot of serious charges without a lot of fact. The fact may be there. But we haven’t seen it.

If you have good stocks and you really know them, you’ll make money if you’re patient over three years or more.

Contrarian value investing is based on various performance metrics that outperform the market, like low price/earnings, low price/cash flow, low price/book and even high-yield. All of these, in numerous academic studies, have outperformed the market…significantly over time.

Psychology is probably the most important factor in the market – and one that is least understood.

For the last two or three years, the earnings just shot through all the forecasts. We’re still in a strong earnings environment, but at the same time we’re getting somewhat more misses, and that, coming to a somewhat more jittery market, I think is leaving people concerned.

History constantly reminds us that in an uncertain world there is no visibility of prospects. Future earnings cannot be predicted with accuracy.

There’s no question that people saw the excitement of the Internet, … how important it would be. There was absolutely no question they caught it right in the late 1990s. But they paid far too much.

A realistic definition of risk recognizes the potential loss of capital through inflation and taxes, and would include at least the following two factors: The probability that the investment you chose will preserve your capital over the time you intend to invest your funds. The probability the investments

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you select will outperform alternative investments for this period.

I want to take a little bit more time now that the market has closed and take a good look. Is there anything really new here? I really don’t know.

A good starting point [in the measurement of investment risk] is the preservation and enhancement of your purchasing power in real terms.

There’s a lot of nervousness with what interest rates are doing, … Financial stocks are up 3 percent one day and down 3 percent the next.

When people are frightened, they cut their time horizon dramatically, … Even advisers will say to sell because they see portfolios crumble and they fear people will have nothing left. It’s really not rational, but it does happen.

Favored stocks underperform the market, while out-of-favor companies outperform the market, but the reappraisal often happens slowly, even glacially.

I paraphrase Lord Rothschild: ‘The time to buy is when there’s blood on the streets.’

good growth rate, (although) the stock has been knocked down sharply.

Famous Quotes by David Dreman

We invest in undervalued companies that exhibit strong fundamentals, above-market dividend yields and historic earnings growth, which our analysis indicates will persist. Our strategy is to own strong, fundamentally sound companies and to avoid speculative stocks or potential bankruptcies.

Patience is a crucial but rare investment commodity.

The economics of the auto industry are overwhelming what Bill Ford can do. Are they going to come out of this? I just don’t know.

If you play it out long enough it blows up.

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David Dreman Quotes