Focused Compounding Ep 422. Creating Business Systems, John Neff, Multiple Expansion, Inflection Points, and Other Investing Musings
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Jan 5, 2024 Investing expert John Neff discusses creating business systems, multiple expansion, inflection points, and other investing musings. The hosts explore books on success and business systems, dive into the concept of systems using Howdens Joinery as an example, and analyze John Neff's investing strategies. They also discuss the impact of multiple expansion on returns and explore different investing approaches and portfolio composition.
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Decentralized Systems
- Create decentralized systems with autonomy for each location, like Howden's Joinery.
- This allows for better customer service and sales focus.
John Neff's Investment Style
- John Neff, similar to Peter Lynch, focused on low P/E investing and stable growth.
- He believed growth above 20% is risky.
Neff's Trading
- John Neff frequently traded the same stocks, buying and selling multiple times.
- He bought and sold Numat Mining multiple times in the early 1980s.