David Dreman Quotes
102 David Dreman Quotes
1 2 3
I bought a lot of bank stocks in 1990, when many big, strong banks with good capital got tarred. And after Hillary Clinton because chief adviser in 1992, we bought a lot of drug stocks. We were able to buy Bristol-Myers at something like 14 times earnings and yielding 6%.
David Dreman
One of the big problems with growth investing is that we can’t estimate earnings very well… I always look at trailing earnings when I judge stocks.
David Dreman
[On whether he tends to buy early and sell early] That’s the biggest flaw of every value manager.
David Dreman
If you have good stocks and you really know them, you’ll make money if you’re patient over three years or more.
David Dreman
[In September 1980] We’re having a wild ‘new-issue-tronics’ market similar to the one in the 1960s. If you’re not already in it, we’re on the verge of a very major bull market.
David Dreman
In any single year, there is always some style that will take the lead and then fade out over the next few years.
David Dreman
[On buying pharmaceutical stocks in 1993 when Hillarycare made the headlines] We took a pretty big position, and in the first year, it hurt us. But in years two and three, we doubled or tripled our money.
David Dreman
[On stocks in October 2008] We’re buying.
David Dreman
[In January 2012 on the stock market] It’s very cheap… People are just terrified to go near stocks at this point.
David Dreman
[In January 2012] It’s hard to finetune earnings… But stocks are still very, very cheap.
David Dreman
We’ve always been contrarian investors.
David Dreman
[On the differences between Contrarian and Value investing] Contrarian is a form of value investor, where we tend to buy the lowest P/E stocks or by P/E ratio or we can also use Price to Book or Price to Cashflow or even high yield … It does work… There are a lot of very good stocks, where people just don’t like them for one reason or another and they won’t pay much for them.
David Dreman
[On owning 50-60 stocks] We have diversification and don’t take really big bets on any one stock.
David Dreman
We always sell at the market multiple. We buy below the market multiple, and when a stock moves up to the market multiple we’ll sell it.
David Dreman
[In January 2012] Diversification is more important than it’s ever been.
David Dreman
[In January 2012 on a lesson learnt in 2008] If there’s a loss just don’t buy it… Some of the very major banks had no idea how much they owned in sub-prime.
David Dreman
[In January 2012] There’s a lot of money floating out there not only in the United States and we think that we’re probably going to face some inflation at most four or five years out.
David Dreman
[In April 2008] Bank of America is one of our biggest holdings… I think we’re more than half-way through this crisis.
David Dreman
[In April 2008] I think right now that Lowes and some of the retailers are just counting a worst case for housing and for general retail for years and years to come. I don’t think it’s that way. We’ll have a minor dip… but Lowes’s probably has long term growth of 10-12% a year and I think it’s undervalued in the current market.
David Dreman
Invest equally in 20 to 30 stocks, diversified among 15 or more industries (if your assets are of sufficient size).
David Dreman
Buy medium or large sized stocks listed on the New York Stock Exchange, or only larger companies on Nasdaq or the American Stock Exchange.
David Dreman
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.
David Dreman
1 2 3
Return from David Dreman Quotes to
Quoteswise.com