John Neff
Legendary manager of Vanguard Windsor Fund, master of low P/E value investing
"To us"
About John Neff
John B. Neff (September 19, 1931 – June 4, 2019) was an American investor and mutual fund manager. He managed the Vanguard Windsor Fund from 1964 to 1995, achieving an average annual return of 13.7%, outperforming the S&P 500 by over 3% annually for 31 years. Neff was known as a "low P/E investor," consistently seeking undervalued stocks that the market had overlooked or abandoned. His approach combined value investing with a focus on dividend yield and earnings growth, creating what he called "total return" investing. Unlike glamour stock investors, Neff deliberately sought out-of-favor, unglamorous companies trading at low price-to-earnings ratios. He believed that patient investing in boring but solid businesses would eventually be rewarded as the market recognized their true value. His contrarian approach and disciplined methodology made the Windsor Fund one of the most successful mutual funds of its era, attracting billions of dollars from investors who appreciated his consistent, risk-conscious approach.
Core Investment Principles
Low P/E Investing
Buy stocks with low P/E ratios relative to their growth rates. The market often overreacts to bad news.
→Total Return Focus
Look at total return: earnings growth plus dividend yield. Both matter for wealth creation.
→Contrarian Value
Buy when others are selling. The best opportunities are in stocks that are out of favor.
→Dividend Yield
Dividends are a real return you can count on. They also signal management confidence.
→Moderate Earnings Growth
You dont need high growth. Moderate, sustainable growth at a low P/E beats expensive growth stocks.
→Browse John Neff's Principles by Topic
Famous Quotes
"ugly stocks were often beautiful."
"When you feel like bragging"
"it's probably time to sell."
"It requires the loneliness of the long-distance runner."
"Windsor's success flowed from our willingness to step outside the crowd's embrace."
