Customer Reviews

Contrarian Investment Strategy

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I admit to opening this book with a degree of scepticism because of its early publication date (1979). Most of the older investment books that I have read just do not stand the test of time. I am shocked and pleased to report that this one is different: It remains a timely, interesting if not particularly lively read! The really great thing about this book is that it covers a broad panoply of issues that saves one from having to buy other books such as, to paraphrase, 'The Madness of Crowds and the Delusions of....', or 'Against All Odds,' (a book about the nature of odds). I would say 'A Random Walk Down Wallstreet' too, but I believe that this latter book is so important that one really must read it. The author does one thing that no other book on investing that I have read has done which is to discuss the effect of mass psychology or 'groupthink' upon the decisions of market analysts, financial advisors, and investors. Further the author convincingly demonstrates the why and how that fundamental and technical analyses fail to outperform the market, or even to anticipate market moves. What makes this book an especially timely read to me (circa 2004) is that I believe that the conditions of the 1970's that the author comments upon have crucial similarities to the ones that we may soon be facing (wartime economy, inflationary pressures, statgnant job/wage growth, national self-doubt). Obviously no two economic eras will be identical, but I believe that the author's incredibly insightful commentary at that time supplies we the present day audience with an awful lot of really good ideas and methods for building a successful approach to the new economics. As to the author's system of 'Contrarian Investment Strategy,' I would put it to you that the ideas contained are not half bad. In fact, I use a somewhat modified approach myself which, I am happy to say, seems to have stood me in good stead to date. I would recommend this book to you and, without having read it yet, the author's undoubtedly good 1998 update; although, ironically, I suspect that this older version is going to be more relevant to the next decade than the updated version is. We'll see.

It was my good fortune, and my clients, that I read this book back in 1980. It informed my stock selection methods for my entire career, and I owe Mr. Dreman a debt of gratitude. I haven't missed too many books on investing published in the last 40 years (and before) and this one rates as one of the two best I have found. If you are interested in stock investing, buy it!