Sunday, March 11, 2007

John Neff on Investing - Book Review

John Neff on Investing

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.

Other Related Reading:

My Review My Review