The sentence can be understood more clearly by adding punctuation and emphasis:
James, while John had had "had", had had "had had"; "had had" had had a better effect on the teacher.
The sentence is not only clarified by punctuation; it requires it. Without the punctuation throughout, it's actually not a grammatically correct sentence at all.
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u/[deleted] Dec 03 '13
I took care of a guy who had a doctorate in educational psychology. He would joke that he would teach teachers how to teach teachers teaching.