David Dreman Quotations

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

Analysts have always been overly optimistic.

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.

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.

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

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

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

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

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

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.

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 you select will outperform alternative investments for this period.

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

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

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.

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.

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

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

Patience is a crucial but rare investment commodity.

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

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

Stay in the stock market, in the oil sector.

When people are frightened, they cut their time horizon dramatically, ... Even advisors 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.

This was the major litigation case they had to get through.

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.

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.

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

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.

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,

I'm sure weather affects moods, but whether it also affects stock markets is hard to prove. If it's sunny in New York, how's it going to affect the guy selling in a real downpour in Mississippi? However, psychology does influence decision-making. The study should have some caveats.

If you play it out long enough it blows up,

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.

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.