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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David Dreman graduated from the University of Manitoba in Through this book, Dreman systematically demonstrated the absurdity of such an assumption, and proved that the market is everything but rational. They have been straregies into 3 categories: People prefer to see strong and immediate correlation between the price and the perceived value of a stock, as it offers an immediate explanation reason bias of the prevalent stfategies, which provide comfort psychologically by reducing the level of uncertainty.

Beware of market manipulation Lists with This Book.

Contrarian Investment Strategies: The Classic Edition by David Dreman

David Dreman’s name is synonymous with the term “contrarian investing,” and his contrarian strategies have been proven winners year after year.

The most important value of this book is Dreman’s commitment into the treacherous water of “market irrationality”, which both Graham and Fisher recognized, but neither made serious attempts to explain.

On Contrarian Investment Strategy. The book concludes with a warning about high frequency trading, a description of the GFC, an overview of the dangers of inflation and some thoughts on free vs. Remember to think for yourself and do not follow the crowd! Why Initial Public Offerings are a guaranteed loser’s game. He also provides things to consider when hiring a broker and financial advisor.

Trivia About Contrarian Invest With contrarian investing diversification is essential – 30 to 40 stocks. The filtering process is NOT passive, which provides a pretty reasonable representation of the real world, but active. The excessive use of credit is the first of many destructive characteristics most bubbles have in common. Open Preview See a Problem? Stefan Verstraeten rated it it was amazing Apr 30, I tried to extract points drenan the book, which I believe are contrariaan unique or original as far as the field of investment concerns.


Nov 30, Steve Bradshaw rated it it was amazing Shelves: The book concludes with a warning about high frequency trading, a description of the GFC, an overview of the 4. The only difference in the 70s was the runaway inflation. Thomas Nilsson rated it liked it May 19, The “autokinetic effect” experiment on stratgeies convergence of opinion in group: A modern Ben Graham, Dremen is driven investmsnt fundamentals and underlying data, an approach that oddly marks him as a contrarian investor in today’s emotion-driven markets.

Why crisis, panic, and even market downturns are the contrarian investor’s best friend. Be the first to ask a question about Contrarian Investment Strategies. 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.

The smaller investmeng sample used t he more likely the findings are to be chance rather than meaningful. May 30, Jeffrey rated it it was ok. Saliency leads people to recall distinctively good or bad events disproportionally to the actual frequency. Phil rated it it was amazing Oct 04, This is the climate that tests the mettle of the pros, the worries of the average investor, and the success of David Dreman’s brilliant new strategies for the next millennium. When analyzing, one should try investemnt avoid drawing conclusion bases on too small sampling size law of small numbersor drawing conclusion from unreliable or irrelevant “case rate” the available info in a specific situation.

It also packs a good dose of simple executable advice – in essen Dremen’s name is eponymous with successful contrarian investing and this book methodically shows why along with the impressive records of the Kemper-Dremen funds. Representativeness – natural human tendency to draw analogies and see identical situations where none exist.


The opinion of a group “converges” as the group interacts. It’s worth the read or even just a skim.

Contrarian Investment Strategies: The Classic Edition

Psychological detrimental factors that prevent one from being a successful investor. This tends to comfort people, as it reduces the level uncertainty.

All common sense but difficult to be executed. Although EMH dremzn been disproved by black swan events in many circumstances, it still has a large support base due to the lacking of a better theory.

The recency and saliency of the enormous price movements resulted in investors vividly recalling the share gains these stocks provided while downplaying dontrarian considerable risks. Never buy a company that is losing money. The more vague and complex the situation is, the more we rely on other people whose intelligence we ivnestment.

Harsh Patel rated it it was amazing Feb 15, Why the chances of hitting a home run using the Street’s best research are worse than being the big winner in the New York State Lottery. His Kemper-Dreman High Return Fund has been the leader since its inception in — th David Dreman’s name is synonymous with the term “contrarian investing,” and his contrarian strategies have been proven winners year after year.

May 18, Hahn Lin rated it really liked it. Dreman is also one of cpntrarian handful of money managers whose clients have beaten the runaway market over the past five, ten, and fifteen years.

Recency – people think disasters are more likely because they have happened recently.