Reverse project investment was first put forward by Peter Derman on the basis of scientific research in behavioral psychology. Darriman was selected as one of the top 19 investors by the Encyclopedia of Project Investment. He thinks that the stock market is very designed for the advantages of human nature, and people's greed and fear are self-evident in the stock market. Investor sentiment will cause the stock price to deviate greatly from its intrinsic value, and the successful use of other investors' incorrect pricing can bring very rich benefits.
Dreiman's key investment method is to buy stocks with low P/B ratio but higher dividend distribution than the average when the stock price was hit. Dreiman said, the key to successful investment is: don't expect your strategy to succeed in the sales market immediately, and give it an effective time. In other words, everyone should be concerned about long-term rights and interests.
Robert Neve is regarded as a typical contrarian investor. With this unique project investment design style, Robert Neve has achieved extraordinary project investment and sales performance. During his 31-year management of Windsor Stock Fund, he won 22 sales markets, which increased by 55.46 times, and the average annual compound rate of return was 13.7%, which exceeded the average rate of return of the sales market by 3%.
Robert Neve's investment methods can be summarized as follows:
First, low P/B ratio. For cyclical industries, only buy those stocks whose P/B ratio is expected to fall to the bottom. For the stable enterprises in the growth manufacturing industry, we should pay attention to them when they suffer the impact of bad news and go to a low price-to-book ratio.
second, the total rate of return should be more than twice the price-to-book ratio. The total rate of return is one of the treasures of Robert Neve's victory over his peers. It describes raising the forecast, income growth rate plus return on equity.
Third, select companies whose stock fundamentals are at least close to the average. This low price-to-book ratio shows that the use value of the enterprise has not been fully recognized.