Neff employs a value approach with an emphasis on dividend producing stocks, which sets him apart from most other money managers in this FAQ because the majority of the others rank dividend yield as one of the least important factors to consider.

He ignores momentum, being happy enough to buy stocks based purely on value criteria and sell any stock in his portfolio that becomes expensive from a value standpoint.

Neff's portfolio has an average PER about 1/3 lower than market averages, with a 2% higher dividend yield. He doesn't mind concentrating his portfolio in particular industry groups that satisfy his value criteria as well, seeing no real obligation to diversify across all sectors.

His funds emphasise income, believing people overpay for growth and that growth stocks suffer from a high rate of mortality. His portfolios have a fairly low turnover because he buys mostly for the dividends, feeling that often he can achieve a higher total return from slower growing companies with high dividend yields.

John Neff has an interesting valuation approach that is quite similar to a PEG (John uses the inverse of this ratio, but I've flipped it for consistency) Price/earnings/(growth and dividend) ratio = what you pay for your investment return.

                                  PER   
             PEGD  =  ---------------------------- 
                      Growth rate + dividend yield