David Dreman, author and money manager, wrote one of the seminal books on contrarian investing, Contrarian Investment Strategies: The. These books are the basis for the AAII David Dreman screen. Dreman Screen. Dreman’s contrarian investment strategy seeks out medium- and large-sized. courses: Living in the Environment, 16th edition ( pages, Brooks/Cole ),. . B. Millman, University of Massachuse.
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Fundamental analysis sounds far more logical than technical analysis, but itself also rest on a bed of psychological quicksand. This book is updated recently by the author, David Dreman, a pioneer on behavioral investing and a true contrarian.
Thus continued good news has limited impact stgategies a high flyer with high PE, but a negative surprise will hammer the stock.
Contrarian Investment Strategies: The Classic Edition by David Dreman
Ammarabuajamieh rated it it was amazing Jan 25, Generally supply increases at our near market highs. The Classic Edition better. Trivia About Contrarian Invest The more “case rate” is considered to be unreliable, the more one should rely on the “base rate” in general info statistical for the entire category. All common sense but difficult to be executed. It’s worth the read or even just a skim.
Dreman demonstrates how investors consistently overvalue the so-called “best” stocks contrarisn undervalue the so-called “worst” stocks, and how earnings and other surprises affect the best and worst stocks in opposite ways. The school technical analysis views that all fundamental information about a security has already been reflected in the price. Since surprises are a way of life in the market, Dreman shows you how to profit from these surprises with his ingenious new techniques, most of which have been developed in the nineties.
This is something I’ve noticed anecdotally, but it’s pleasing to see in the research – and, of course, provides a big justification for value investing through times of turmoil.
Excellent, though it fails to tell the whole story. Gert Van Huynegem rated it liked it Sep 22, Thomas Nilsson rated it liked it May 19, Why innvestment stocks offer extra protection in bear markets, as well as delivering superior returns when the bull roars.
Contrarian Investment Strategies: The Classic Edition
May 31, Alan Deng rated it really liked it. The more vague and complex the situation is, the more we rely on other people whose intelligence we respect. Our beliefs, values and attitudes can be thought to lie along a continuum.
Remember to think for yourself and do not follow the crowd! This update is useful because he spends time discussing the current economic investmejt and offering some strategies.
After graduating, he worked as director of research for Rauscher Pierce, senior investment officer with Seligman, and David Dreman is a noted investor, who strategues and is the Chairman of Dreman Value Management, an investment company. To ask other readers questions about Contrarian Investment Strategiesplease sign up. Stanley Aog rated it liked it Aug 12, Backing up the data is a lengthy but good discussion on investor psychology along the lines of Shiller’s Irrational Exuberance that goes through the main behavioral biases that provide opportunities for value investors.
The book ends by exposing the pitfalls of IPOs, small caps and index investing. Invdstment a decent book for the library – not much else.
He also provides things to consider when hiring a broker and financial advisor. This landed a crucial piece of theoretical support on fundamentalists analysts like Graham and Fisher, whose investment thesis lies on the mis-valuation of the market. To capture the crowd, this image must be extremely simple. I hope such list can be used as a quick reference this great work of Dreman?
David Dreman – Contrarian Investment Strategies
He is even handed in his disdain for all the systems – fundamental, technical, momentum and market timing. People who are liked like biaswho have high status authority biaswho are reputed to be competent on the judgmental task authority bias or who merely exude self-confidence are more effective in influencing others.
There are no discussion topics on this book yet.
May 30, Jeffrey rated it it was ok. Never buy a company that is losing money. Gustave LeBon’s theory of “psychological crowd” Crowds think, and only think, in images. Bin Li rated it it was amazing Dec 13, Psychological detrimental factors that prevent one from being a successful investor. Psychology in Group Thinking: Just a moment while we sign you in to your Goodreads account.