Subscribe to RSS feed
posted on 2 Feb 2016  -  2,838 views
I regularly read articles from
"The Motley Fool Singapore". One person that is frequently mentioned there is John Neff.
"John Neff (born 1931) is one of the best known mutual fund investors of the past 40 years, notable for his contrarian and value investing styles as well as heading Vanguard's Windsor Fund. Windsor was the best performing mutual fund during his tenure and became the largest fund closing to new investors in the 1980s. Neff retired from Vanguard in 1995. During Neff's 31 years, from 1964 to 1995, Windsor returned 13.7% annually versus 10.6% for the S&P 500." -
It is reasonable to assume that he is doing something right to have beaten the market with an annual return 30% higher than S&P 500. He openly shares his approach and the few main metrics that he focused on are:
Price / Earnings to understand expectations. He wanted this to be low, but not too low because it could mean that there might be problems with the company.
Earnings per share growth which ideally lies between 7% and 20%. Too high and it might not be sustainable.
Return on Equity to measure management effectiveness. He believes this to be a good gauge of management effectiveness.
Good Dividend Yield
Total Return Ratio which is basically the summation of EPS growth and dividend yield over PE.
Using the above-mentioned metrics, I have created a
screener in SGXcafe named "John Neff" that will be available for everyone to use to screen Singapore stocks.
Next Article >
< Previous Article
Growing Dividends - Does Debt-to-equity ...
Facebook for Investor
List All Articles
Other articles by evankoh
A Course All Investors Should Attend
I have always wanted to attend the Value Investing Mastery Course (or VIMC) by BigFatPurse as I have heard many good things about it. However, as I am working and living in Tokyo, there was no opportunity for me to attend. Luckily for me, they recently released eVIMC, which is the e-learning equivalent of the popular VIMC. Personally, I have always preferred e-learning over physical lectures as it ...
Do You Keep Your Extra Cash in the Bank? There Are Better Options Out There!
The company that I am currently working for in Tokyo has a cafeteria that serves free lunch to all employees, hence during lunchtime, we would get together for lunch and chat. Occasionally, the topic about money management would come up, and to date, I have yet to find a Japanese colleague who invests in the stock market, citing reasons of either finding it too risky, lack of knowledge, or more commonly, ...
Play and Become A Better Investor!
As an investor, we often want to believe that we can pick stocks that can beat the market. So I made a game that allows us to test if we could actually pick stocks that can beat the market. The idea is simple: you will be given facts of an anonymous stock on a historical date. Based on the information, you will choose whether to invest or ignore that stock. Once you have made the decision, SGXcafe ...