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book Review: John Neff on Investing

June 11, 2007
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Steven Rosales

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What Is It About?

This book is the story of John Neff, former manager of the Windsor Mutual Fund. The book is divided into three parts. The first part describes Mr. Neff’s early life leading up to his taking the helm of the Windsor Fund. The second part of the book describes Mr. Neff’s investing style and the techniques he used to obtain above average market success. The final part is a decade by decade review of Mr. Neff’s trading journal and the various investments made using the principles from part two.

What Did I Get Out Of It As A New Investor?

This is an excellent book about an individual who was able to consistently achieve stock market success. Blending a style of investing that I describe as value with contrary ideas, Mr. Neff lays out his method of success describing it simply as “low price-earnings investing.” Applying several principles (e.g., buying low p/e stocks that are fundamentally sound, with growth potential) Mr. Neff attributes his success to maintaining consistency of investing style.

This point provides the investor with the best lesson. Mr. Neff’s success is owed to the simple fact that he found a method of investing that not only worked, but most importantly, worked for him. He then adhered to that style for over 40 years. Consequently, no matter what your time frame or investing/trading style, if you can find something that works and works for you, the hardest part will be simply to maintain the discipline to consistently stick with it your chosen style.

The Good News

Fast paced easy read.

The Bad News

Discusses only in general terms the reasons why certain stock selections were made.

The Bottom Line For those who want to learn more about fundamental investing this book is a great read.

About the author:

Steven Rosales
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.2/5 (6 votes)

Comments

billytickets
Billytickets - 7 years ago
Good review .I don't know why all these "gurus" will not explain how they calculate intrinsic value.Everyone does it different but thats what we want to know as investors
ccyork
Ccyork - 7 years ago


I bet they don't explain how they calculate intrinsic value because it's like grandma's soup: Every time that she makes it, she makes it just a little bit differently from the last time she made it, but somehow it always comes out tasting good.

-- ccyork


billytickets
Billytickets - 7 years ago
lol good line.
Edgar729
Edgar729 - 7 years ago
Ccyork, thats an amazing line!
ccyork
Ccyork - 7 years ago


thanks

-- ccyork
wildcat
Wildcat - 7 years ago
Just buy Google and Apple.

Get rich.
armeetofo
Armeetofo - 7 years ago
it is not that simple to buy google and apple to get rich, bypass the google due to it is too new to me, apple stayed below $20 for last 10 years before ipod introduced to the market or mr. jobs back to the position in 2003

the real result is i do not know where or when to exit, i will end up zero or negative return!

the same token if i buy yahoo or cmgi in 1990's and exit 2000 before march, i am very rich now, the fact is i could not do it, same as soros
musto
Musto - 7 years ago
soros got greedy seeing people around him get rich

on Nasdaq stocks.

He got burned for following the tech herd.

armeetofo
Armeetofo - 7 years ago
musto:

i don't know much that you mention, i know he foresee tech will crash and sell short at Feb, a month before the market real crash, he is smart but miss the timing, that is why i never do any timing.
musto
Musto - 7 years ago
I think in his case there was a bit of envy involved too.

armeetofo
Armeetofo - 7 years ago
i think you are right.

i do not buy any options, if i do want to buy it, i will treat it as buying insurances for my stocks that i love to hold

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