The founder and Chairman of Dreman Value Management (est. 1977) shares his views on how investors can beat the market with this book (written in 1998). In reference to the efficient market hypothesis (EMH), Dreman writes "Nobody beats the market, they say. Except for those of us who do." More on this book is available here. One of his earlier books (from 1982) has already been summarized here.
In addition to the criteria set out above, Dreman checks the following five additional criteria before an issue makes it into his portfolio:
- A strong financial position (current assets vs current liabilities etc.)
- Favourable operating and financial ratios
- A higher rate of earnings growth (historically) vs S&P 500, plus the likelihood that earnings will not plummet in the future
- Earnings are estimated conservatively
- An above average dividend yield
Finally, Dreman discusses some actual investments he has made by applying these methods. He goes into detail on how the above ratios and criteria applied to his purchases of Galen Health, Eli Lilly, Ford, Fleet Financial and KeyCorp in the 1990s.