Trader and Manager John Neff. Stock market legend
Many traders have repeatedly heard about such famous figures as Soros and Buffet, who, thanks to their approaches and achievements, created huge investment funds and forever wrote their names in history during their lifetime.
Naturally, the people who created such funds came to the fore, becoming role models for millions of investors around the world.
However, behind such famous figures, for some reason we do not consider those simple workers who throughout their lives were loyal to their companies, earning billions of dollars for them.
One of these greatest traders was John Neff, who was able to earn his investors more than 13 percent per annum for 30 years.
John Neff was born in the famous town of Ohio, USA in 1931. His family was very ordinary and far from the stock exchange.
Since childhood, John Neff has had entrepreneurial savvy. So, when John was only in the fifth grade, he managed to earn his first money by selling ordinary baseball cards that his peers collected.
Later, as John grew older, his father constantly involved him in business work. It is worth noting that it was while working with his father that John realized how profitable low-competitive, boring niches could be, which later played a huge role in his career.
Education. Job
Initially, John Neff saw himself in art, so the initial choice fell on the University of Toledo. Being a diligent student, during one of the courses he was lucky to meet a teacher who was an ardent follower of the equally famous trader and investor Benjamin Graham.
It is worth noting that before entering university, John had two years to collect his thoughts, since he served in the US Navy from 1951-1953.
John Neff was greatly impressed by the lectures of the teacher, which instilled in him an increased interest in financial markets.
After graduating with honors from the university, John received a bachelor's degree and immediately tried to put his acquired knowledge about financial markets into practice.
By chance, John Neff was able to get a job as a securities analyst at National City Bank, whose office was located in Cleveland. It is worth noting that while working at a bank, he gained his first professional experience of trading in financial markets.
At the same time as working, John entered Case Western University to study finance and banking. Unlike many students, John has already worked in the banking industry, so he can easily complete his studies and receive an MBA degree.
Develop your career. Managed funds
John Neff successfully worked for National City Bank for eight years, which allowed him to gain a good reputation in the financial environment. In 1964, the largest investment corporation, Wellington Management, noticed the talents of the young manager and offered him the position of manager.
John Neff simply could not miss that good moment, so he immediately quits his previous job and becomes the manager of one of the individual funds under the company.
It is worth noting that John very quickly began to rise through the ranks of the firm, and under his management there were such famous investment funds as Gemini, Qualified Dividend and Windsor.
It is worth noting that the average return on the funds was in the range of 13-15 percent, which ultimately, after thirty years, allowed investors to receive 55 for every $1 invested.
If we talk about John's investment style, it can be noted that he either bought shares in low-competitive niches, or at turning points in the company, when new rumors or mismanagement reduced the value of shares of strong companies.
In 1995, John Neff retired and ceased to manage assets independently for Wellington Management.
It is worth noting that he decided to convey all the acquired knowledge and experience in his autobiography, “John Neff on Investing,” which he was able to publish in 2001.