38 Quotes by David Dreman

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.