TIP747: John Neff: The Value Investor Who Quietly CRUSHED the S&P 500 w/ Kyle Grieve

You're listening to TIP. Today, we're gonna cover a value investing legend who is rarely discussed among the greats, but most definitely belongs there. That's John Neff, a low PE investor who outperformed the S and P 500 by 3% per year for nearly three decades. My favorite part about Neff was the vast array of ways that he won. Yes, he was best known as a low PE investor who gobbled up cheap shares in businesses that were unloved by the market. But that wasn't the single investing strategy I think that really defined him. Instead of looking exclusively for cheap stocks, he ventured into cyclicals, moderate growers, and my personal favorite, misunderstood growth. While the majority of his contemporaries chased well known growth stocks, John chose a road less traveled. And like many value investors, he was forced to endure some pretty tough times of underperformance. However, he never abandoned his value investing roots and continued to invest wherever he could find value. It didn't matter if the stock had a PE of four or 25. If it was undervalued and had the characteristics of a winner, he was fair game. I have a deep admiration for investors who own a diverse amount of stocks at wide ranges of valuation metrics and can still outperform the market. Neff was someone who excelled at investing and did a great job of sharing his investing strategy, which I'm gonna cover with you today. So whether you're a value investor looking at cigar butts or a growth investor looking for hidden growth, you're gonna enjoy this episode. Now let's get right into this week's episode on Jon Neff. Since 2014 and through more than 180,000,000 downloads, we've studied the financial markets and read the books that influence self made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Kyle Grieve. Welcome to The Investors Podcast. I'm your host Kyle Grieve. And today, we're gonna be discussing one of the most underrated legends of the value investing world, and that's Jon Neff. So I'll be citing his autobiography here, which is called Jon Neff on Investing. The book provides a very, very good illustration of his long and successful career and a lot of details on his strategy which is what I'm gonna be focusing on. So Jon Neff's investing career ran about three decades. And during that time, he outperformed the S and P 500 by 3% annually which is one of the most impressive investing feats I've ever seen. One thing I really admire about John was his steadfast ability to just maintain a strategy when other strategies were working better for a time. Now he ran the Windsor Fund from 1964 to 1995, Meaning, he was around during the go go years where investors who chase momentum were very well rewarded until they weren't. But let's start with John's early life before we transition to some of his primary principles here. So …