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

Categorized in : Fashion Work Out Investing

Patience is a crucial but rare investment commodity. by David Dreman

Patience is a crucial but rare investment commodity.

investment commodity crucial

Psychology is probably the most important factor in the market -... by David Dreman

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

psychology understood important

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

conclusion always-wrong teach

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.

ships investing strategy

I paraphrase Lord Rothschild: ‘The time to buy is when there's bl... by David Dreman

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

rothschild lord blood

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.

risk loss two

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

patient three years

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

company favors happens

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.

cash-flow yield book

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.

growth judging looks

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.

division perception cards

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

enhancement risk real

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

visibility earning world

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.

yield growth strong

Nobody beats the market, they say. Except for those of those of u... by David Dreman

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

finance beats business

Analysts have always been overly optimistic. by David Dreman

Analysts have always been overly optimistic.

analysts optimistic