subject: Jack Dreyfus-A Financial Wizard [print this page] Jack Dreyfus was born in Montgomery, Alabama, on August 28, 1913. Dreyfus was an American financial wizard, and the founder of the highly successful Dreyfus Fund.
Dreyfus was one of the most successful investors in the 1950's and 1960's. He was credited with bringing big numbers of Americans to the stock market by creating the Dreyfus Fund. This fund was one of the first widely marketed mutual funds.
Dreyfus set up his fund in 1951. He pioneered strategies and methods that would prove to be very successful. This included following market trends, and keeping his losses small. Dreyfus would also buy stocks as they reached yearly or all-time high prices. He proved that, buy high and sell higher, was a much better strategy than, buy low and sell high.
The Dreyfus Fund returned 604% from 1953 to 1964. When Dreyfus himself ran the fund, it beat the next best performing fund by a whopping 102%. Now that is really impressive. Twice in the 1950's, Dreyfus raised cash in his Dreyfus Fund at the beginning of a major bear market. Dreyfus saved his clients a lot of money. Most mutual funds, back then, and even now, stay pretty much fully invested all the time, no matter what. This is pure insanity during a bear market. It is just one of the reasons why mutual funds are not a good way to make money, in my opinion.
Dreyfus used technical analysis to achieve his great success. Dreyfus stated, "I just saw the patterns. The same things happened over and over again".
In summary, here is the basics of the strategy that Dreyfus implemented so successfully. He normally would buy each stock at its highest price in the past year. As an example, if a stock was in a price range of $35 to $40 for a few months, Dreyfus would buy when the stock broke out of the range, at just over $40 a share. Dreyfus watched for certain chart patterns that potentially could mean big profits. He had seen these patterns many times in the past, and knew exactly which recurring patterns were the best to trade. Dreyfus stayed in sync with the market, by analyzing the price and volume action. He favored weekly charts and would also focus on strong fundamentals.
Jack Dreyfus-A Financial Wizard
By: Gary E Kerkow
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