📖John Neff
Quality at a Fair Price
Seek quality businesses at fair prices.
The ideal investment is a high-quality business purchased at a fair price. Quality compounds wealth; fair prices protect capital.
🏠 Everyday Analogy
📖 Core Interpretation
John Neff emphasizes durable business quality over short-term noise. A strong model, real competitive edge, and disciplined capital allocation matter more than quarterly excitement.
💎 Key Insight：Quality and fair price together create optimal investments.
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❓ Why It Matters
Without business-quality filters, investors drift toward stories rather than economics. Durable cash generation is what supports long-term valuation.
🎯 How to Practice
Use a checklist covering moat, management, unit economics, and capital allocation; track long-term cash generation instead of quarter-to-quarter noise.
⚠️ Common Pitfalls
Buying narratives instead of cash-generating economics
Overreacting to short-term operating noise
Ignoring management quality and capital allocation
📚 Case Studies
1
Chevron Energy Cycle Investment (1982)
In the early 1980s energy downturn, Neff accumulated Chevron at a discounted valuation while oil prices and profits were depressed.
✨ Outcome：When energy prices stabilized and improved, Chevron’s earnings strengthened and the stock delivered strong total returns for his fund.
2
Ford Motor Turnaround (1982)
Neff bought Ford when it was deeply out of favor, trading at low P/E and high dividend amid recession and auto-industry pessimism.
✨ Outcome：Held for years as earnings rebounded; stock multiplied several times, validating his patient value approach.
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