--- title: "Meaning & Key Takeaway of: We invest in undervalued companies that…" description: "\"We invest in undervalued companies that exhibit strong fundamentals, above-market dividend yields and historic earnings growth, which our analysis indi..." image: "https://sms4smile.com/quotes/i/c97/david-dreman-29428_analysis_we-invest-in-undervalued-companies-that_2718325.jpg" --- # We invest in undervalued companies that exhibit strong… ![“We invest in undervalued companies that exhibit strong fundamentals, above-market dividend yields and historic earnings growth, which our analysis indicates will persist. Our strategy is to own strong, fundamentally sound companies and to avoid speculative stocks or potential bankruptcies.” quote by David Dreman](https://sms4smile.com/quotes/i/c97/david-dreman-29428_analysis_we-invest-in-undervalued-companies-that_2718325.jpg) [Download](https://sms4smile.com/quotes/i/c97/david-dreman-29428_analysis_we-invest-in-undervalued-companies-that_2718325.jpg) [Open image](https://sms4smile.com/quotes/i/c97/david-dreman-29428_analysis_we-invest-in-undervalued-companies-that_2718325.jpg) > “We invest in undervalued companies that exhibit strong fundamentals, above-market dividend yields and historic earnings growth, which our analysis indicates will persist. Our strategy is to own strong, fundamentally sound companies and to avoid speculative stocks or potential bankruptcies.” [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Invest in solid, undervalued firms with strong fundamentals and avoid risky, speculative stocks. **In simple terms:** Buy strong, cheap companies; avoid risk. Key Takeaway Focus on fundamentals, avoid speculation. Themes investment value risk management Mood analytical cautious Type financial educational When to use this quote - portfolio building - financial planning - stock analysis Key Concepts fundamentals dividends earnings growth Questions to Reflect On - How do you assess a company's fundamentals? - When is speculation justified? A Different Perspective Market volatility can affect even strong fundamentals. ★ ★ ★ ★ ★ No ratings yet [Analysis](https://sms4smile.com/quotes/about/analysis/) [Bankruptcy](https://sms4smile.com/quotes/about/bankruptcy/) [Company](https://sms4smile.com/quotes/about/company/) [Customer](https://sms4smile.com/quotes/about/customer/) [Dividends](https://sms4smile.com/quotes/about/dividends/) [Earning](https://sms4smile.com/quotes/about/earning/) [Exhibits](https://sms4smile.com/quotes/about/exhibits/) [Fundamentals](https://sms4smile.com/quotes/about/fundamentals/) [Growth](https://sms4smile.com/quotes/about/growth/) [Historic](https://sms4smile.com/quotes/about/historic/) [Invest Undervalued](https://sms4smile.com/quotes/about/invest-undervalued-2861577/) [Investing](https://sms4smile.com/quotes/about/investing/) [Persist](https://sms4smile.com/quotes/about/persist/) [Sound](https://sms4smile.com/quotes/about/sound/) [Stocks Potential](https://sms4smile.com/quotes/about/stocks-potential-2861578/) [Strategy](https://sms4smile.com/quotes/about/strategy/) [Strategy Strong](https://sms4smile.com/quotes/about/strategy-strong-1309057/) [Strong](https://sms4smile.com/quotes/about/strong/) [Strong Fundamentals](https://sms4smile.com/quotes/about/strong-fundamentals-2861579/) [Undervalued](https://sms4smile.com/quotes/about/undervalued/) [Undervalued Companies](https://sms4smile.com/quotes/about/undervalued-companies-2861576/) [Yield](https://sms4smile.com/quotes/about/yield/) ## Related quotes > [“A strategy is only as strong as its ability to adapt under pressure.”](https://sms4smile.com/quotes/wayne-chirisa/a-strategy-is-only-as-strong-as-its-ability-to-adapt-under-pressure/) [Wayne Chirisa](https://sms4smile.com/quotes/author/wayne-chirisa/) > [I love using a targeted acquisition approach in conjunction with a business that has a clear strategy and strong organic growth.](https://sms4smile.com/quotes/brad-feld/i-love-using-a-targeted-acquisition-approach-in-conjunction-with-a/) [Brad Feld](https://sms4smile.com/quotes/author/brad-feld/) > [The best strategy is always to be very strong.](https://sms4smile.com/quotes/carl-von-clausewitz/the-best-strategy-is-always-to-be-very-strong/) [Carl von Clausewitz](https://sms4smile.com/quotes/author/carl-von-clausewitz/) > [I think any good government will target on the finishing date, that is, the polling day and make sure that their strategy is strong…](https://sms4smile.com/quotes/alexander-downer/i-think-any-good-government-will-target-on-the-finishing-date-that-is/) [Alexander Downer](https://sms4smile.com/quotes/author/alexander-downer/) > [Well if you've got information about a company, or you believe that a company is undervalued, you can go out and buy their stock…](https://sms4smile.com/quotes/robert-f-engle/well-if-you-ve-got-information-about-a-company-or-you-believe-that-a/) [Robert F. 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To try to…](https://sms4smile.com/quotes/benjamin-graham/the-thing-that-i-have-been-emphasizing-in-my-own-work-for-the-last/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [“Our statistical screens are merely exploiting a group of undervalued stocks that are easily identified and are further protected by strong balance sheets and…](https://sms4smile.com/quotes/tobias-carlisle/our-statistical-screens-are-merely-exploiting-a-group-of-undervalued/) [Tobias Carlisle](https://sms4smile.com/quotes/author/tobias-carlisle/) > [If you buy something because it's undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value.…](https://sms4smile.com/quotes/charlie-munger/if-you-buy-something-because-it-s-undervalued-then-you-have-to-think/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [To be part of a winning team was something I had undervalued.](https://sms4smile.com/quotes/justin-rose/to-be-part-of-a-winning-team-was-something-i-had-undervalued/) [Justin Rose](https://sms4smile.com/quotes/author/justin-rose/) > [The role of women has always been undervalued in the spy world, always undermined in terms of recognition. Unfairly so. It's a world that…](https://sms4smile.com/quotes/helen-mirren/the-role-of-women-has-always-been-undervalued-in-the-spy-world-always/) [Helen Mirren](https://sms4smile.com/quotes/author/helen-mirren/) > [Contentment is an undervalued grace.](https://sms4smile.com/quotes/sinclair-b-ferguson/contentment-is-an-undervalued-grace/) [Sinclair B. Ferguson](https://sms4smile.com/quotes/author/sinclair-b-ferguson/) > [For far too long, women have been undervalued in the workplace for the work they provide compared to their male counterparts that do the…](https://sms4smile.com/quotes/ned-lamont/for-far-too-long-women-have-been-undervalued-in-the-workplace-for-the/) [Ned Lamont](https://sms4smile.com/quotes/author/ned-lamont/) > [Any Mexican, would recognise that Mexico was abused, undervalued and downgraded in international circles, most of all by the United States.](https://sms4smile.com/quotes/adolfo-aguilar-zinser/any-mexican-would-recognise-that-mexico-was-abused-undervalued-and/) [Adolfo Aguilar Zinser](https://sms4smile.com/quotes/author/adolfo-aguilar-zinser/) > [Effort is the one strictly undervalued and original contribution we make to this world.](https://sms4smile.com/quotes/william-james/effort-is-the-one-strictly-undervalued-and-original-contribution-we/) [William James](https://sms4smile.com/quotes/author/william-james/) ## More by David Dreman > [A realistic definition of risk recognizes the potential loss of capital through inflation and taxes, and would include at least the following two factors:…](https://sms4smile.com/quotes/david-dreman/a-realistic-definition-of-risk-recognizes-the-potential-loss-of/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [Investors repeatedly jump ship on a good strategy just because it hasn't worked so well lately, and, almost invariably, abandon it at precisely the…](https://sms4smile.com/quotes/david-dreman/investors-repeatedly-jump-ship-on-a-good-strategy-just-because-it/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [History constantly reminds us that in an uncertain world there is no visibility of prospects. Future earnings cannot be predicted with accuracy.](https://sms4smile.com/quotes/david-dreman/history-constantly-reminds-us-that-in-an-uncertain-world-there-is-no/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [Favored stocks underperform the market, while out-of-favor companies outperform the market, but the reappraisal often happens slowly, even glacially.](https://sms4smile.com/quotes/david-dreman/favored-stocks-underperform-the-market-while-out-of-favor-companies/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [Bank One has got one of the best credit card divisions, ... 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Except for those of those of us who do.](https://sms4smile.com/quotes/david-dreman/nobody-beats-the-market-they-say-except-for-those-of-those-of-us-who/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [One of the big problems with growth investing is that we can't estimate earnings very well. I really want to buy growth at value…](https://sms4smile.com/quotes/david-dreman/one-of-the-big-problems-with-growth-investing-is-that-we-can-t/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [I paraphrase Lord Rothschild: ‘The time to buy is when there's blood on the streets.'](https://sms4smile.com/quotes/david-dreman/i-paraphrase-lord-rothschild-the-time-to-buy-is-when-there-s-blood-on/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [“The rational man - like the Loch Ness monster - is sighted often, but photographed rarely.”](https://sms4smile.com/quotes/david-dreman/the-rational-man-like-the-loch-ness-monster-is-sighted-often-but/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [Patience is a crucial but rare investment commodity.](https://sms4smile.com/quotes/david-dreman/patience-is-a-crucial-but-rare-investment-commodity/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [ A good starting point \[in the measurement of investment risk\] is the preservation and enhancement of your purchasing power in real terms. ](https://sms4smile.com/quotes/david-dreman/a-good-starting-point-in-the-measurement-of-investment-risk-is-the/) [David Dreman](https://sms4smile.com/quotes/author/david-dreman/) > [I buy stocks when they are battered. 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