John Neff

Mr. Neff, 67, who outperformed Standard & Poor's 500 stock index in 20 of the 29 full calendar years he ran Windsor until retiring in 1995, sees a lot of unhappy stock market investors on the horizon. "I don't think the economy is in any kind of trouble, but people are anticipating a reward out of character with the type of earnings growth we will have in the next 10 years. The market has been pumped up so high on a valuation basis that it will be extremely hard for it to perform. "There's still decent companies in decent industries like home builders D.R. Horton Inc., Toll Brothers and Beazer Homes USA. They are selling for six to nine times earnings in a 27-multiple market. Everybody in America shows how they made it by having their own piece of turf. I say as long as we have 7% mortgage money, that makes housing very affordable. "Most portfolio managers are fighting yesterday's war instead of the next one. They are reacting to what's happening rather than anticipating. They are captives too often of Street analysis and momentum investing. If you can get on the other side with skill, dexterity and patience -- and be right -- why, the world beats a path to your door."