I was bummed out before I read this book- had just read A Random Walk Down Wall Street and had become a believer in a)the efficient market hypothesis and b)the inability to beat the market over the long term.
Then comes this book. Chapter by chapter, Dreman dissects efficient market arguments that I saw as fact and showed that they were folly. Dreman states that the market is not efficient because investors are many times not rational. In fact, they are predictably irrational. And then Dreman gives data to prove this. He presents research to show that investing in a certain way allows you to beat the market.
And he gives more research and data. And more, and more. Some people will complain that this is boring and overwhelming, but he does so to prove the validity of his methods. I've read many investment books, and usually an author will give his guidelines for picking stocks, with return numbers taken at a certain point in time, and holding stocks for a certain period, and maybe a few other stipulations. And in the end, I never trusted the author enough to invest any real money in his strategy.
Not so with Dreman. The wealth of research convinced me that Dremans methods were not datamining and were not limited to certain market environments.
Its the most imporant investing book I have read. Dremans method is very similiar to value investing preached by a number of other famous investors. The difference is that Dreman proves to you through his research that value investing works. Everybody addicted to Mad Money and Jim Cramer needs to give this book a peek.
- Hardcover: 464 pages
- Publisher: Free Press (5 October 1999)
- Language: English
- ISBN-10: 0684813505
- ISBN-13: 978-0684813509
- Product Dimensions: 15.5 x 3.3 x 23.5 cm
- Boxed-product Weight: 771 g
- Average Customer Review: Be the first to review this item
- Amazon Bestsellers Rank: 121,077 in Books (See Top 100 in Books)