Trader and Manager John Neff, a stock market legend
Many traders have heard of such famous figures as Soros and Buffett, who, thanks to their approaches and achievements, created enormous investment funds and forever etched their names in history during their lifetimes.
Naturally, the people who created such funds rose to the forefront, becoming role models for millions of investors around the world.
However, behind such famous figures, for some reason we do not consider those ordinary workers who have been loyal to their companies throughout their lives, earning billions of dollars for them.
One of these great traders was John Neff, who was able to earn his investors over 13 percent per annum over 30 years.
John Neff was born in the famous Ohio town in the USA in 1931. His family was quite ordinary and far from the stock market.
From childhood, John Neff had a knack for entrepreneurship. While still in fifth grade, he managed to earn his first money selling the ordinary baseball cards his peers collected.
Later, as John grew older, his father constantly involved him in the business. It's worth noting that it was while working with his father that John realized how profitable low-competition, boring niches could be, which played a huge role in his future career.
Education. Work
John Neff initially envisioned himself in the arts, so he initially chose the University of Toledo. A diligent student, he was fortunate to meet a professor in one of his classes who was an ardent follower of the equally famous trader and investor Benjamin Graham.
It's worth noting that before entering university, John had two years to collect his thoughts, as he served in the US Navy from 1951 to 1953.
John Neff was greatly impressed by the professor's lectures, which instilled in him a heightened 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 of financial markets into practice.
By chance, John Neff landed a job as a securities analyst at National City Bank, headquartered in Cleveland. It's worth noting that while working at the bank, he gained his first professional experience trading in financial markets.
While working, John enrolled in Case Western University's School of Finance and Banking. Unlike many students, John had already worked in banking, so he easily completed his studies and earned an MBA.
Career Development. Managed Funds
John Neff successfully worked at National City Bank for eight years, earning a good reputation in the financial community. In 1964, Wellington Management, a major investment corporation, noticed the young manager's talents and offered him a managerial position.
John Neff simply couldn't miss that opportunity, so he immediately quit his previous job and became a manager of one of the separate funds under the company.
It's worth noting that John rose through the ranks very quickly within the firm, and under his management were such renowned 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.
Speaking about John's investment style, it can be noted that he either bought shares in low-competition niches or at turning points in a company, when rumors or mismanagement lowered the share price of strong companies.
In 1995, John Neff retired and ceased to manage Wellington Management's assets independently.
It is worth noting that he decided to convey all the knowledge and experience he had acquired in his autobiography, “John Neff on Investing,” which he was able to publish in 2001.
