1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

David Dreman: Value Keeps Steaming On

January 13, 2006 | About:

David Dreman is happy with the fact that for the sixth consecutive year, value stocks outpowered growth, with the S&P Barra Value Index appreciating 3.5% last year compared with 2.5% for the S&P Barra Growth Index. What should we look for during 2006? I expect a reasonably good one with the S&P 500 rising 10% or more."

He wrote: "Stocks tend to get hurt by inflation in its early stages, but then they catch up after the first year or so of an ascending Consumer Price Index. I think we are at this inflection point now.

With few exceptions every one of the stocks I write about is held in the portfolios I manage. This is known as putting your money where your mouth is. In most cases these are long-term holdings.

The news from companies is encouraging: Earnings should continue to increase. Large-size issues, which have trailed mid- and small-cap stocks for five years, should outpace them this year. Large-caps are much cheaper at this stage of the cycle.


Rating: 1.0/5 (1 vote)


Please leave your comment:

GuruFocus has detected 2 Warning Signs with Pfizer Inc $pfe.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by

User Generated Screeners

doonich5% within 52wk
JefulfordNegative EV
JefulfordP/graham <0.5
JefulfordP/TB <1
JefulfordP/TB <0.7
JefulfordNCAV <1
peterc123NCAV New
wwygeraSmall-Cap Growth
sidrkfgSmall Cap Growth
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat