Dreyfus Was An Inspiring Chartist
Ken Hoover writes in IBD:
“In his day, Jack Dreyfus was head and shoulders above every other mutual fund manager. In the 12 years he ran Dreyfus Fund, it returned 604%. That was 102 percentage points better than the next best fund. The Dow Jones Industrial Average was up 346% in the same period, according to a 1964 Life Magazine article published at roughly the time he stepped down as fund manager. How did he do it? He read charts. “A stock would be middling along for a while, then it would bust out on the upside. That was usually pretty bullish,” Dreyfus said. That’s when he would buy. Dreyfus will be 91 in August. He still goes to his office overlooking Central Park in New York every day…”
Be careful when you hear the word ‘chartist’. There is no universal definition. Some folks think it means looking at a chart and making predictions. Others properly see it as technical trend followers do: another way of describing reacting to ‘price’ movement.
