David Dreman is the founder and Chairman of Dreman Value Management, LLC and also serves as the firm’s Chief Investment Officer. His Large Cap Value Fund has returned average 17% annually, and Small Cap Value Fund average 16.5% annually since inception in 1991. A regular columnist for Forbes for 25 years, Mr. Dreman’s recent best-selling book, "Contrarian Investment Strategies: The Next Generation?" was published in the spring of 1998.
Investing Philosophy:
The Contrarian and the value guru, Dreman’s investment philosophy is based on low P/E approach to stock selection. The philosophy at Dreman Value Management: “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.” They believe that the markets are not perfectly efficient, and that behavioral psychology influences investor actions and reactions.
(GuruFocus, November 19, 2009) David Dreman runs Dreman Value Managements LLC, through which he offers s series of contrarian funds and managed account services. GuruFocus tracks his stock portfolios from all sources and as of September 30, 2009, we see him managing $3.85 billion distributed among 292 stocks. So he is not a concentrated stock pick by another stretch. More...
In his latest Forbes column, contrarian investor David Dreman is bullish. He thinks that the economy will recover, as it always did. “One thing that isn't different is the economy's thirst for energy.” This is his third quarter portfolio update. More...
David Dreman's Forbes column: "Multiples are inflated because earnings are depressed. It's that simple."
"The pundits on CNBC are telling us that a stock market correction is overdue. The reason a pullback is supposedly imminent: The economy is going to need a long time to heal. Unemployment advances toward 10%, and consumer spending, as a percentage of income, is at its lowest level in decades. Economic pessimists include such notable commentators as forbes columnists A. Gary Shilling and the libertarian congressman Ron Paul (see "On My Mind"). And then, say the bears, stock prices are already pretty high. The S&P 500 index is at 133 times bottom-line earnings for the 12 months through September." More...
David Dreman recently had an interview with Fox Business. This article will highlight his thoughts from the interview and conclude by reviewing Dave Dreman’s top holdings. The video can be found here. In the interview, he hinted that he liked Wells Fargo & Company (WFC) and PNC Financial Services (PNC) even though thee are not part of his top holdings. More...
(GuruFocus, August 26, 2009) Last year, when the stock markets fell indiscriminately, there was nowhere to hide. Among the investment Gurus we track, with a few exceptions (such as John Paulson, Prem Watsa, John Hussman, Robert Rodriguez), many value investors were punished just as severely as their momentum investing colleagues, who seem have the right to be more volatile. Among the investment Gurus who got their reputation tarnished is David Dreman, who suffered horrendous losses during 2008. So severe that one institute, Deutsche Bank fired him as the fund manager for DWS Dreman High Return Equity Fund in early April, 2009. More...
David Dreman Forbes Column: Buy real estate, buy stocks and sell long bonds. Or else suffer the consequences when the full effects of stimulus spending are felt. More...
(GuruFocus, August 5, 2009) Investment Guru, Chairman and CIO of Dreman Value Management David Dreman had an interview with CNBC. Key points he made: More...
David Dreman, the renowned contrarian investor, had a forgetable 2008. His idea is "that we accumulate useful resources, such as crude for our strategic oil reserve. This would create new jobs, halt a deflationary spiral and give us some protection against the next international oil crisis." David Dreman owns 297 stocks with a total value of $3.1 billion. This is his Q2 portfolio update. More...
While perusing the news headlines on Seeking Alpha this morning I learned that Fairfield Semiconductor (FCS) reported second quarter earnings per share of -$.03, soundly beating the consensus estimate of -$.11. Hooray! The company only lost $.03 a share in the worst economic downturn in 80 years. This is surely something to celebrate, as evidenced by the fact that the stock was indicated up in pre market trading. Now, I have no idea whether the stock will finish or up down on the day. I also don’t know if only losing $.03 a share in this economic environment is actually indicative of shrewd management and effective cost containment. It could be that FCS did an admirable job in Q2 navigating its way through a very tough market. I am certainly not an expert on the semiconductor industry and am not picking on FCS. I’m just using Fairfield’s Q2 results as an example of what I see as the absurdity of putting any weight behind how a company performed relative to consensus forecasts. More...
My idea is that we accumulate useful resources, such as crude for our strategic oil reserve. This would create new jobs, halt a deflationary spiral and give us some protection against the next international oil crisis. If the government isn't going to buy oil, you can do so yourself by purchasing oil producers. More...
David Dreman, the legendary contrarian investor, had a forgetable year in 2008. He thinks that we are in a depression. But he thinks that if stocks drop another 15% to 20%, they are likely to at least double from their current levels over the next five years. Trying to catch the market bottom is a loser's game. He is heavy in financials (still), oil and health care. These are his buys and sells in the first quarter. More...
Even if stocks drop another 15% to 20%, they are likely to at least double from their current levels over the next five years. Trying to catch the market bottom is a loser's game. More...
Maybe it was Robert Olstein, manager of Olstein All Cap Value (OFALX) and co-founder of "The Quality of Earnings Report." He delves into the financial statements of the companies to find those that generate lots of free cash flow, avoid aggressive accounting, and are selling at a discount to his estimate of value. This has allowed his fund to post annualized returns of 7.6% since inception in late 1995, versus 3% for the S&P 500. More...
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