Validea Hot List Newsletter: Spotlight on Guru John Neff

In our most recent Validea Hot List newsletter, we highlight the investment philosophy of John Neff, who managed the Vanguard Windsor Fund from 1964 to 1995 (during which time the fund averaged a 13.7 percent return versus the S&P 500’s 10.6 percent). Neff’s strategy focused on the price-earnings ratio as a gauge of investor expectations for a company’s future growth—an important factor according to this market guru. We explain the Neff methodology, founded on the… Read More

John Neff and Five Picks for the Low P/E Investor

For legendary investor John Neff, who managed Vanguard’s Windsor Fund from 1964 to 1995, a stock’s price-earnings ratio represented a measure of what level of growth investors are expecting a company to achieve in the future. This according to a recent Nasdaq article by Validea CEO John Reese. The expectation factor, writes Reese, “was paramount for Neff, who found that high-flying growth stocks with high P/E’s were very sensitive to any disappointment compared to expectations.”… Read More

Value-Based Picks for the Trump Rally

As the Trump rally continues and stock prices remain elevated, shopping for value stocks may not sound feasible, writes Validea CEO John Reese in this week’s Forbes. He points out, however, that whether or not the market is overbought “shouldn’t matter to a true value investor.” Reese discusses the strategy of value investing legend John Neff, who led the Windsor Fund from 1964 to 1995 and outperformed the market by an average of 3.1% per… Read More

John Neff: Bargain Hunter

Unloved but promising stocks were just the ticket for Investment guru John Neff. While managing the Windsor Fund for more than 30 years, his conservative approach earned an average 13.7% annual return and beat the market by an average of 3.1% per year. In his article for TheStreet.com this week,  Validea CEO John Reese describes this Low P/E Investor’s philosophy and offers some fundamentally solid stock picks. Scripps Networks Interactive, Inc. (SNI) is a developer… Read More

How John Neff Beat The Market For 30 Years

Every other issue of the Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the John Neff-inspired strategy, up 19.0% year-to-date vs. 8.9% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Neff-based investment strategy.

Great Pages: John Neff Calls The Internet Bubble

Can a single page of a book change your investment life? We believe it can. Periodically, we highlight some of the Great Pages that have had a great impact on our investment philosophy. Today, we look at p. 231 from John Neff’s “John Neff on Investing”, in which Neff essentially predicts the coming demise of the Internet bubble.

How John Neff Beat The Market By Being Boring

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the John Neff-inspired strategy. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Neff-based investment strategy. Taken from the January 31, 2014 issue of The Validea Hot List Guru Spotlight: John Neff Most investors wouldn’t give a fund described as “relatively prosaic, dull, conservative” a… Read More

How John Neff Beat The Market For Three Decades

Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the John Neff-inspired strategy. Below is an excerpt from the newsletter, along with several top-scoring stock ideas from the Neff-based investment strategy. Taken from the April 26, 2013 issue of The Validea Hot List Guru Spotlight: John Neff Most investors wouldn’t give a fund described as “relatively prosaic, dull, conservative” a second glance.… Read More

Guru-Inspired Picks from the Ripening Farming Industry

Profits in the agriculture industry are reaching all-time highs, and in his latest Forbes.com article, Validea CEO John Reese offers some ideas for how investors can profit from the surge. “This year, the Department of Agriculture is forecasting record profits for the farming industry, with net farm income topping the $100 billion mark for the first time ever,” Reese writes. “The projected $103.6 billion in income would be a 24.5% increase over 2010, with big… Read More

Are Stock Prices Already Factoring In An Earnings Slowdown?

Michael Lipper, a former president of the New York Society of Security Analysts, says he thinks stocks are already pricing in a slowdown in sales growth and a decrease in profit margins. “One of the many lessons that I learned from John Neff, who was the great portfolio manager of the Windsor Fund, (now known as the Vanguard Windsor Fund), was to focus on the earnings power of a company under normal business conditions and… Read More