John Neff on Investing

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In the investment-management business, it's best to take bows quickly. Unless, of course, you're John Neff, a living legend, who as manager of Vanguard's Windsor Fund beat the market in 22 out of 31 years. Neff grew Windsor to become the largest mutual fund by combing the bargain basement for quality merchandise and selling as other investors caught on. In John Neff on Investing, he explains how he scoured the daily list of stocks hitting new lows, the "dusty rag and bone shop of the market," to find out-of-favor companies with low price/earnings ratios, those growing faster than seven percent a year, that paid generous dividends. He shows how to distinguish misunderstood and overlooked stocks from those with lackluster prospects.

Shunning the terms value investor and contrarian, he tells us he prefers to be known simply as a "low-p/e investor." "Contrarian investor suggests a stubborn nature," he says, "and there's a thin line between contrarian and being just plain stubborn." Memory in the stock market is notoriously short. "Remember the lessons of the past as they tend to repeat themselves," Neff says. "You cannot become a captive of historical parallel, but you must be a student of history." He takes us back to the early '70s, the "silly season" he calls it, "when investors emphasized a handful of glamour stocks at the expense of the market.... Hypnotized by rising market levels, investors lost sight of fundamentals ... and a dazed and confused public became persuaded that investing is easy." The toughest investment decision is the decision to sell. "Successful stocks don't tell you when to sell," says Neff. "When you feel like bragging, it's probably time to sell." He quotes a French proverb: "Buy on the cannons, sell on the trumpets."

John Neff on Investing begins with an insightful autobiographical sketch, but the marrow of this book is the journey through Neff's investment diary while managing Windsor. He takes us through three turbulent decades and dissects in detail his investment successes and failures. Relying on relentless application of his low-p/e strategy, abetted by attention to fundamentals and a liberal dose of common sense, he repeatedly rode stocks from under- to fair valuation, most often leaving the overvaluation thrill ride to braver souls.

Neff explains his concept of Measured Participation, a sort of asset-allocation strategy for low-p/e investing, and he shows that while difficult in today's high valuation market, constructing a portfolio guided by his methodology is still possible. Anyone with an interest in investing will enjoy learning at the feet of this master. --Scott Harrison

Book Description

John Neff is a life-long contrarian, proving time-and-again over the past three decades that bucking the system can pay off big. During his illustrious career as a money manager, Neff flew in the face of conventional wisdom by consistently passing over the big growth stocks of the moment, in favor of inexpensive, under performing ones-and he usually won. During his thirty-one years as portfolio manager for Vanguard's Windsor and Gemini II Funds, he beat the market twenty-two times, through every imaginable stock market climate, while posting a 57-fold increase in an initial stake. When Windsor closed its doors to new investors in 1986, it was the largest mutual fund in the United States.
Now retired from mutual fund management, Neff is finally ready to share the investment strategies that earned him international recognition as the "investor's investor", and made him the one to whom other money managers come to manage their money. In John Neff on Investing, Neff delineates, for the first time, the principles of his phenomenally successful low p/e approach to investing, and he describes the strategies, techniques, and investment decisions that earned him a place alongside Warren Buffett and Peter Lynch in the pantheon of modern investment wizards.
Packed with solid advice and guidance for anyone who aspires to using Neff's unique brand of value investing, John Neff on Investing offers invaluable lessons on using price-earnings ratios as a yardstick, to zeroing in on undervalued stocks, interpreting earnings histories and anticipating new market climates. A narrative of Neff's early days-My Road to Windsor-reveals the extraordinary mindset and humble circumstances that shaped his winning investment philosophy. By reproducing excerpts from his personal investment diaries, this book offers a unique opportunity to watch Neff in action over the years. A faithful, quarter-in-quarter-out chronicle of a life on Wall Street, the diaries provide unprecedented insights into the thinking behind some of his best (and worst) investment decisions, while tracing the evolution of his innovative investment style.
The first book to fully reveal the long-heralded investment strategies of a Wall Street genius, John Neff on Investing is must reading for investors, brokers, traders, and bankers of every kind.
JOHN NEFF, until his retirement in 1995, was Senior Vice President and Managing Partner of the Wellington Management Company, the Windsor Fund's investment advisor.
S.L. MINTZ, is New York Bureau Chief of CFO Magazine, a publication of the Economist Group dedicated to the latest financial thinking and how it is being implemented in today's markets. His other books include Beyond Wall Street (Wiley, 1998) and Five Eminent Contrarians.

Customer Reviews:

Not bad.......2007-06-14

Neff's book is for value investors. He had a great run as manager of the Windsor fund. People have noted his market beating record was not as good as Peter Lynch's and I agree; however, Neff ran his fund a lot longer and endured more bearish periods of time than Lynch. That aside, I wish Neff had mentioned more of his bad decisions. I tend to learn more through others' mistakes than successes. What Neff repeats throughout the book is that he always focused on low P/E stocks with moderate growth potential and healthy dividends. He wasn't one to buy and hold for long periods. If you like value investing and identify with its tenets you might want to give this book a try.

John Neff on Investing.......2007-04-11

A life experience about investing in stocks from one of the best investors, in simple words.

Let down by the last 100 pages.......2006-09-26

First up, for those of you who haven't heard of John Neff - he was in charge of the Windsor Fund in the US for 31 years. It beat the market for 25 of those 31 years and beat the S&P 500 by more than 2 to 1. In other words - he has street cred as an investor. In fact, he's right up there with Peter Lynch as a genuine guru of fund management.

Cutting to the chase, I would say that this book is well worth reading but not as good as either of the two Peter Lynch books (One Up on Wall Street and Beating the Street). It is written in a chronological style and starts out with a bit of a tour through Neff's early life before getting to the good stuff - his days at Windsor. He starts out by setting out what his main investment principles are:

Low p/e ratio
Fundamental growth > 7%
A decent (and ideally growing) yield
Superior relationship of total return to p/e paid
Solid companies in growing fields
Strong fundamental case

Up to here I thought the book but great. Neff sets out what qualities it is that he looks for in a company. But the final third of the book is basically a year by year tour of the most important buys and sells in the Windsor portfolio during Neff's tenor. I found this a bit unsatisfying because Neff never really set out why something was bought or sold and how it was that a company did or didn't come to meet his principles.

The most interesting thing that I took from the book was that Neff never fell in love with stocks and never bought something with the intention of holding it forever. His style was to hunt out bargains or hidden value stocks and buy them at low p/e ratios. Once the hidden value had been "outed" and the price had caught up with Neff's view of the true intrinsic / fair value, he would sell. In other words he would trade in and out of stocks all the time - it wasn't uncommon for him to hold a stock for 6-12 months before selling it.

An interesting read,.......2006-05-30

On reading this book, my first thought was that if getting good returns were so easy, why aren't more people following Neff and Dreman's strategy? I read this book just after finishing Dreman's, and it seems that Neff says exactly the same thing as Dreman. Of course I should say rather that Neff speaks more from practice while Dreman's book seemed to contain more of a research and academic focus. I found it interesting because Neff narrates his experiences in a detailed manner against a backdrop of varying economic conditions from the go-go era of the sixties, through inflation and oil scares in the seventies, rising interest rates, and various boom and bust cycles. The latter was particularly relevant for me, since I believe that currently (2006), we are also facing some inflationary fears and rising oil prices.
Admittedly, if you are just looking for investment advice, its not the best book however I think much can be gleaned from Neff's experiences. Given hindsight and the fact that the book was published in 1999, I found it remarkable that Neff had advised investing in REITs and home builders back in 1999. (Of course that would have led to a windfall these past 3-4 years!)
Overall I advise reading it, even if it may sometimes sound repetitive, so that its drummed into oneself that low P/Es are safer and speculative booms eventually end in tears.

buy it used, or not at all.......2006-05-17

I'll start out by saying that this book had a co-writer. That's not usually the end of the world, but in this case, it seemed to make everything sort of wooden and unfeeling. Not that I expected much more from an investing book (it was a triumph..I laughed, I cried!), but this was really at the edge of readability, in my book.

Which leads me to two huge pet peeves, which were violated in this tome.

First, penultimate means NEXT TO last. Some people, even to those that "ultimate" means last, think penultimate means "very last, or "really the conclusion last," but it doesn't. It means NEXT TO last. I learned this in school, in 7th or 8th grade, when we read some knights of the round table stuff (le morte d'arthur, the green knight (I think), and others). Uther Pendragon was King Arthur's predecessor, and he was, in shallowly veiled allusion, the "pen dragon," meaning the one before the dragon, who was Arthur. So remember- penultimate is not last.

The other complaint, which is somewhat esoteric, is on the definition of "inflection point." Inflection points are not places where the graph or plot peaks at highs or lows. Inflection points are specifically where the rate of change shifts from positive to negative. For example, if the market grew at 5% in year 1, then grew 10% in year 2, then grew 15% in year 3, then grew 10% in year 4, then grew 5% in year 5, then lost 5% in year 6, then lost 10% in year 7, the inflection point would NOT be sometime between year 5 and 6. The inflection point would actually be between year 3 and 4, when the rate of change of value stopped increasing and started decreasing. Another way to rememeber it is when the graph shifts from concave up to concave down. If your graph can hold water, like a cup, it's concave up, and the other part is concave down. I'm not explaining it too well, but if you really care, check out an algebra textbook or google it. I checked other investing sources about this, to see what they say, and most have confusing definitions, like "A point on a chart that marks the beginning of a significant move, either up or down." That's sort of true, but it seems to reinforce the Neff-like definition of an inflection point, which is "when the market stops going up and starts going down."

OK, done with that rant. Believe it or not, I actually thought this book was pretty good. The first part is a sort of autobiographical piece about how he found himself as a fund manager. The rest of the book is about what his fund did through every major market event, from the beginning until the 90's. A side effect of his Windsor fund summary is that it's essentially a summary of every major market event for the last 50 years. I admit, I started skimming in the late 70s, only because I've read other market histories lately. It was good- if that's what you're looking for.

Being a person that felt the pain of a huge stock market correction in 2001-2 (remember, I was the guy that thought I was diversified because I held most of my money in Fidelity Select Technology), I enjoy reading histories of other huge market. People that say everything has changed since things like "The Intelligent Investor" was written are up there with people that say value investing is dead. Neither is right, long term.

So, despite being annoyed at the little things, this was an interesting read. This is another book that I wouldn't recommend until you've read some of the classics first, though. I give it a weak buy.

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John Neff on Investing: Library Edition
John Neff
Manufacturer: Blackstone Audiobooks
ProductGroup: Book
Binding: MP3 CD

General | Business & Investing | Subjects | Books

General | Investing | Business & Investing | Subjects | Books

Business & Investing | MP3 CD | Audiobooks | Formats | Books
ASIN: 0786174706

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John Neff on Investing
John B.; Mintz, S. L. Neff
Manufacturer: John Wiley & Sons, Incorporated
ProductGroup: Book
Binding: Paperback
ASIN: B000WL6YHK

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Due to factors both within and outside their control, companies of all types now face internal and external communication demands that are central to their ultimate success. Markos Kounalakis, Drew Banks, and Kim Daus accordingly argue in Beyond Spin that the most efficacious way to handle them is more complicated than some business leaders may initially imagine--but also more potent than the alternatives they may otherwise engage. Drawing on varied backgrounds in business and journalism, the authors craft a convincing argument for developing a holistic alliance between standard organizational communication and traditional Western journalism that meets these needs. The goal of this refreshingly progressive approach, which they've dubbed strategic corporate journalism, is to create "awareness and understanding through open, timely and accurate information flow." It has been employed in one manner or another by high-profile firms such as SGI, formerly Silicon Graphics, whose experiences under fire are examined in one chapter. Other chapters focus on the evolution and impact of in-house PR and journalism for public consumption; development of effective communication networks in knowledge-based organizations; consequences of adopting or rejecting these principles at companies such as Hewlett-Packard and ARCO; and future requirements these efforts will continually address. --Howard Rothman

Book Description

Discover a new, strategic brand of corporate communication that cuts through today's Dilbert-esque cynicism to engage workforces, manage constant change, and align organizations. In Beyond Spin, three experts detail the techniques of corporate journalism--an ingenious communications model that hinges on open, accurate, and strategically weighted reporting inside a corporation. With practical guidelines and real-world examples from SGI, Microsoft, J.P. Morgan, and other corporations, Beyond Spin helps you equip your company with this powerful new standard of communication--one that makes the most of every communications vehicle to keep your company aligned, nimble, innovative, and fiercely competitive.

Customer Reviews:

Radical new approach to corporate communications.......2006-05-10

This is a very fresh look at corporate communications. Many executives (especially those caught in a short-term "Enron" mentality) are not likely to see the benefits of approaching communications in this way. Is it really so novel an idea that `truth' should be the basis of communication, even in business? Apparently...

This attitude has a common sense to it that is very appealing. If you speak truth to your employees than they will be less likely to have false expectations and become disenchanted and disgruntled. If you speak truth to your customers, they'll never feel cheated. Finally, if your company has spoken the truth, it will not have to face the disgrace of being caught out in a lie-which could destroy it.

Of course, the thought of turning your corporate communications office loose on your company like investigative journalists is probably alarming to most executives. The big question is, how else can you make sure your various departments and employees are motivated to tell the truth and held accountable when they don't?

The authors argue that companies need to re-tool the content, distribution and style of their corporate communications. If the company has good or bad news for its employees and its customers, it is better for the company to be the first to release the "story." Most organizations only deal with bad news when forces outside the company demand it, and then the organization is left scrambling and spinning-loosing credibility in the process.

This book has some fascinating ideas and considers some very important questions that all executives should think about.

don't bother.......2004-04-13

This book still exists? Save your money, its just
more corporate blah, blah, blah by three people who claim to have changed the face of corporate journalism by building an intranet that supposedly changed a company. Nothing more than a bunch of back-patting by three people who did nothing but spend 6-12 mo. in 'employee communications' positions within SGI working with an intranet that was conceived and built way before they took over.
All three of them were escorted to the door because the company realized their ROI was zero. Too bad Markos, Drew and Kim...you couldn't get out of the way of your own 'spin.'

Highly Recommended!.......2002-03-23

In a world overloaded with spin, the only way to cut through the bull is with the truth. So say the authors of Beyond Spin, which advises executives to allow their corporate communications staff to act as internal investigative journalists. The authors maintain that only by revealing the truth within your organization can you hope to guide the flow of information about and around your company in the digital era. Although many executives might find these concepts unworkable, we from getAbstract highly recommend this example-filled look for its fresh perspective on corporate communications.

Beyond Great!.......1999-12-23

Finally! A book that does not insult the "worker in the trenches"! "Beyond Spin" takes the unbelievable position that cubicle dwellers have known all along-the spin upper level management tries to put on its mistakes has never fooled anyone. Truthfulness in corporate communication shows respect and trust (thus fostering its continuance) between the corporation and its employees. Kudos to the authors for their integrity and excellent writing!

Book Description

Hotel and Lodging Management, Second Edition prepares readers to succeed as managers in the hotel and lodging industry, while developing a solid foundation for a long and successful career. This comprehensive resource combines detailed presentations of each department in a hotel or lodging establishment along with a close examination of organizational structure and the interdependent relationship among departments.

This updated Second Edition presents:

New, completely updated chapters on human resources and the sales and marketing departments
Up-to-date case studies reflecting the latest management trends and issues
Profiles of industry pioneers working at all types of properties, from small motels to five-star hotels
New sections on yield management, lodging environments, franchise companies, and management organizations

Hotel and Lodging Management, Second Edition is a comprehensive tool to help readers develop the understanding, knowledge, and skills to be tomorrow's management leaders.

Customer Reviews:

Too brief, too boring, too expensive.......2001-05-06

I work for a hotel/property management software company now and never worked in the hospitality industry other than being a busboy at a Howard Johnson's when I was 16, so I bought this book to give me a better feel for what goes on in the heads of the people using our software. I was disappointed in my choice as soon I opened the package and saw how briefly each topic is covered.

There are plenty of pictures and short biographies of the great hoteliers, which were about the most interesting parts of the book. Many other pictures showed typical workers smiling as they did their jobs, taken right out of the archives from the major hotels. Each chapter also had a summary and review questions section which takes up a good portion of the book. Other than things I had no interest in, such as pages of checklists on the steps to efficiently cleaning a hotel room and sample franchise agreements that used up more valuable pages, there was very little depth to any of it.

It only glanced at the subject of the night audit and accounting functions, which is what I originally bought the book for, and it's coverage of PMS (Property Management Software) systems was limited to remarking that this is one of the biggest changes to happen in the past ten years. I wondered if the author had ever had any exposure to any of the popular PMS packages in use today, or even knew of any since he didn't list or provide references for further study on this subject. With a copyright date of February 2001 I assumed I would get the most up to date coverage but the few pictures and paragraphs of front desk automation were of ancient terminals circa 1985 or so and virtually nothing was mentioned of recent technology changes such as the Internet and online reservation systems now being integrated and handled in-house.

This book is listed as 400 pages but is actually only a little over 300, which was a blessing in a way, since I couldn't wait to get through it and get started on more substantial book on the subject. I'm used to buying computer books with list prices in the range of this book's price tag, and expect to get a comprehensive guide to the subject when I do. I was disappointed with what I got for my money on this purchase though, and couldn't recommend it for anyone who doesn't have to buy it for a course they are taking in school. As a book to keep around just for knowledge, review and reference it is of little value to me.

Book Description

This digital document is an article from The Advocate (The national gay & lesbian newsmagazine), published by Thomson Gale on April 10, 2007. The length of the article is 1110 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Fantastic family fun: good news as we hit vacation time: With Rosie at the helm, the world keeps getting more hospitable to our families.(LIFE/STYLE)(Rosie O'Donnell )
Author: Matthew Link
Publication: The Advocate (The national gay & lesbian newsmagazine) (Magazine/Journal)
Date: April 10, 2007
Publisher: Thomson Gale
Issue: 983 Page: 52(2)

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Gambling on hospitality as USM adds casino/resort management.(Focus: meetings & conventions)(University of Southern Mississippi): An article from: Mississippi Business Journal

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Gambling on hospitality as USM adds casino/resort management.(Focus: meetings & conventions)(University of Southern Mississippi): An article from: Mississippi Business Journal
Lynne Jeter
Manufacturer: Venture Publications
ProductGroup: Book
Binding: Digital

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Management | Management & Leadership | Business & Investing | Subjects | Books

Book Description

This digital document is an article from Mississippi Business Journal, published by Venture Publications on November 29, 2004. The length of the article is 683 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Gambling on hospitality as USM adds casino/resort management.(Focus: meetings & conventions)(University of Southern Mississippi)
Author: Lynne Jeter
Publication: Mississippi Business Journal (Magazine/Journal)
Date: November 29, 2004
Publisher: Venture Publications
Volume: 26 Issue: 48 Page: 18(1)

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Website to Accompany Hotel and Lodging Management: an Introduction

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Website to Accompany Hotel and Lodging Management: an Introduction
Stutts
Manufacturer: John Wiley & Sons Inc
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Binding: Unknown Binding

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"[The Inner Edge] idea of practical spirituality incorporates what I think of as fundamental human values."

--His Holiness, The Dalai Lama

"A clearly thought out, workable guideline for spirituality in business dealing with profound issues both on the individual level and at work."

--Deepak Chopra

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--Bob Gardella, author of The Harvard Business School Guide to Finding Your Next Job

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