David Dreman was on Cnbc yesterday. Dreman surprisingly is not too popular a name in the value investing world compared to others like Schloss or others. However, he has a great long term track record, and I think his books, which really rip apart the effecient market theory, and prove through numerous research the value in low pe, pb, p/cf, and p/d stocks should be required reading for all value investors.
I got the chance to interview Dreman in person about a year ago, if anyone is interested in seeing it click here.
Back to the video:
Relying On Old-Fashioned Stock Picking, Lee Ainslie Reports His “Strongest Quarter” Ever
Lee Ainslie's Maverick Fund USA enjoyed its "strongest quarter in the fund's history" during the three months to the end of June. According to a copy of the firm's second-quarter letter to investors, which ValueWalk has been able to review, Maverick Fund USA gained 18% in the second quarter. Following this performance, the fund was Read More
Dreman thinks inflation is a risk, which puts him in the same camp as Seth Klarman (and myself)! Seth Klarman stated that using 1980s methodology inflation is currently at 8.5%, and 1990s at 4.5%.
Dreman does not trust Bernanke to deal with inflation, as he has been wrong in the past.
Dreman is bullish on real estate, as he has been for over a year.
He does not predict when real estate or inflation will pick up, but will think sometime in the next few years it will.
He thinks that even with the market rich, if you stick with low pe, low pb stocks you will do well, since these stocks have historically outperformed the broad market.
Dreman is not a fan of commodities, but it is impossible predict their future movement.
Below is the full video: