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Widely respected and admired, Philip Fisher is among the most influential investors of all time. His investment philosophies, introduced almost forty years ago, are not only studied and applied by today's financiers and investors, but are also regarded by many as gospel. This book is invaluable reading and has been since it was first published in 1958. The updated paperbac Widely respected and admired, Philip Fisher is among the most influential investors of all time. His investment philosophies, introduced almost forty years ago, are not only studied and applied by today's financiers and investors, but are also regarded by many as gospel. This book is invaluable reading and has been since it was first published in 1958. The updated paperback retains the investment wisdom of the original edition and includes the perspectives of the author's son Ken Fisher, an investment guru in his own right in an expanded preface and introduction "I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits...A thorough understanding of the business, obtained by using Phil's techniques...enables one to make intelligent investment commitments." —Warren Buffet


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Widely respected and admired, Philip Fisher is among the most influential investors of all time. His investment philosophies, introduced almost forty years ago, are not only studied and applied by today's financiers and investors, but are also regarded by many as gospel. This book is invaluable reading and has been since it was first published in 1958. The updated paperbac Widely respected and admired, Philip Fisher is among the most influential investors of all time. His investment philosophies, introduced almost forty years ago, are not only studied and applied by today's financiers and investors, but are also regarded by many as gospel. This book is invaluable reading and has been since it was first published in 1958. The updated paperback retains the investment wisdom of the original edition and includes the perspectives of the author's son Ken Fisher, an investment guru in his own right in an expanded preface and introduction "I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits...A thorough understanding of the business, obtained by using Phil's techniques...enables one to make intelligent investment commitments." —Warren Buffet

30 review for Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics)

  1. 4 out of 5

    Punit Lohani

    If Graham is the king of quantitative analysis, then Fisher is the king of qualitative analysis of stocks. Read this book if your aim is to gain several thousand % in the long term by concentrating on few outstanding firms with excellent management. (For example, one could have gained more than 9000% by investing in GRUH Finance ( a subsidiary of HDFC) when it was a small firm in early 2000s) The book will help you to find future blue chips. Fisher's investing philosophy is focused on investing If Graham is the king of quantitative analysis, then Fisher is the king of qualitative analysis of stocks. Read this book if your aim is to gain several thousand % in the long term by concentrating on few outstanding firms with excellent management. (For example, one could have gained more than 9000% by investing in GRUH Finance ( a subsidiary of HDFC) when it was a small firm in early 2000s) The book will help you to find future blue chips. Fisher's investing philosophy is focused on investing in potential blue chips when they are still small thereby resulting in huge gains. Moreover, the book discusses several puzzling situations which a long term investor often comes across, especially when the markets are volatile. For example: Should one sell if his stock has reached insane valuations so as to purchase it later at lower prices? Or how important is the dividend yield when considering a stock for long term? Of course, Fisher's scuttlebutt technique and his 15 points for stock selection provide immense insights into the analysis style of Fisher. But be warned as these techniques are not as easy to practice. You'll hardly come across any mathematical formulas in Fisher's analysis. Yet this book provides such a compelling logic to understand the stocks that one will find it to be better than most of the quant dominated stocks books. Moreover, you'll discover that, at its core, the idea of growth investing is not much different from that of value investing. In fact, I am not surprised that Warren Buffet calls himself 85% Graham and 15% Fisher. Finally, this book is an excellent value buy. It is actually three books in one. These are: 1) Common Stocks and Uncommon Profits 2) Conservative Investors Sleep Well 3) Developing an Investment Philosophy. The third part contains some excellent ideas based on decades of investing experience of Fisher. This part will, however, benefit you only if you have some investing experience (at least 2-3 yrs). PS: By combining Fisher's ideas with those of Graham's, one can develop an excellent understanding of the stock markets. For perspectives on Indian markets, one can follow Parag Parikh and Mehrab Irani. Iran's articles have been collected into a book called Memoirs of my golden articles. Parikh's ideas on Behavioral finance are outlined in an excellent book called Stocks to Riches. Also, if possible read about Chandrakant Sampat.

  2. 4 out of 5

    Steve

    Bland, obvious and somewhat outdated. Disappointing given Warren Buffet's recommendation. I was hoping for some good ideas on identifying growth franchises that can be backed for long periods of time - most likely the common ground that Buffet finds with Phil Fisher, but instead I found a lot of obvious, MBA-style wisdom, short of real insight. Very little of what is presented is verifiable or backed up with data. The book is particularly dangerous as the basis of an investment manifesto for inve Bland, obvious and somewhat outdated. Disappointing given Warren Buffet's recommendation. I was hoping for some good ideas on identifying growth franchises that can be backed for long periods of time - most likely the common ground that Buffet finds with Phil Fisher, but instead I found a lot of obvious, MBA-style wisdom, short of real insight. Very little of what is presented is verifiable or backed up with data. The book is particularly dangerous as the basis of an investment manifesto for investors with less savvy than Fisher as today's most esteemed companies frequently trade at high valuations, leading to their systematic underperformance as the natural forces of competition and mean reversion do their work to undermine the market's unrealistic expectations (see David Dremen's Contrarian Investment Strategies for research backing this statement). Fisher had the experience and judgement to counteract these forces but most investors do not. Additionally, the valuation methodologies employed by the author are relatively simplistic and rely on a good deal of qualitative judgement. This may sound OK in theory but countless studies have shown otherwise, that because of innate biases, qualitative judgements tend to lead to underperformance over large samples of investors - bar a few seasoned veterans such as Warren Buffet and Peter Lynch). The main problem is that investors lack the discipline to remain unaffected by the cycles of euphoria and panic that characterise markets. The only proven way to instill this discipline is to base decisions on consistent valuation criteria - i.e. one cannot get away from the numbers. Fisher lays out a generic framework that would be a great scorecard for a business awards committee, but would be an unsatisfactory set of guidelines for long term investing success - particularly given the lack of attention on valuation. Anyone who disagrees with this statement should read Dremen's Contrarian Investment Strategies. Clearly most of Fisher's value-add came from industry scuttlebutt and qualitative judgement - unfortunately not something one can learn much about from a book. Common Stocks is not in the same league as Ben Graham's, The Intelligent Investor, which in my view can be employed by the average investor improve his long-term performance (and is backed by substantial research by the author and subsequent studies). For help on the qualitative aspects of investing one could do worse than reading the Buffet annual letters to shareholders. The introduction by Ken Fisher, Phil's son, must be one of the most arrogant and self-promoting forwards ever created and really puts a bad taste in the mouth at the outset..

  3. 4 out of 5

    Joel

    When I first discovered my interest in investing, Common Stocks and Uncommon Profits is one of the first books I read. I remember being enthralled by the notion of taking what seemed incomprehensible and boiling it down to a simple decision--invest or not. Fisher's approach requires common sense and conviction, but most importantly, is repeatable. There are many awful "investing" books out there that seize on people's need to be cutting edge and innovative. Well, not everything changes every year When I first discovered my interest in investing, Common Stocks and Uncommon Profits is one of the first books I read. I remember being enthralled by the notion of taking what seemed incomprehensible and boiling it down to a simple decision--invest or not. Fisher's approach requires common sense and conviction, but most importantly, is repeatable. There are many awful "investing" books out there that seize on people's need to be cutting edge and innovative. Well, not everything changes every year. Eating in moderation and healthy on average will always be better than the latest fad diet. Investing with patience, after research, and with a long-term view, while avoiding ever-present behavioral pitfalls will always lead to better returns, better sleep, and a happier retirement. This is my second read of Fisher's book, so it was more of a quick review than my original detailed study. Nonetheless, here are some salient points that are worth listing (if for no other reason than my own review one day...): apply your time to solvable tasks not senseless economic predictions; a properly chosen stock might never be sold; trust smart investment research, not business insiders; speak to insiders to confirm research, not as an early source; and don't underestimate the importance of company culture.

  4. 5 out of 5

    Iliya Polihronov

    Buy great companies which you never plan to sell. That's the basic concept. The book focuses on and makes some excellent points on the qualitative side of security analysis. It's also a very easy read as quantitive standards aren't really discussed. I will definitely re-read it. Buy great companies which you never plan to sell. That's the basic concept. The book focuses on and makes some excellent points on the qualitative side of security analysis. It's also a very easy read as quantitive standards aren't really discussed. I will definitely re-read it.

  5. 4 out of 5

    إسلام جمال

    It teaches you to invest beyond numbers .. Quality Investing.

  6. 4 out of 5

    Sean

    This book challenged me given its emphasis on growth investing and the scuttlebutt approach. I think I struggled with it because I prefer the simplicity and inherent beauty of the value investing methodology. I invest by identifying undervalued assets, analyzing measures of profitability, liquidity, solvency, and cash flow. I parse the balance sheet in particular and income statement and cash flow statement to a lesser extent. Phil Fisher recommends an alternative approach. He prefers to researc This book challenged me given its emphasis on growth investing and the scuttlebutt approach. I think I struggled with it because I prefer the simplicity and inherent beauty of the value investing methodology. I invest by identifying undervalued assets, analyzing measures of profitability, liquidity, solvency, and cash flow. I parse the balance sheet in particular and income statement and cash flow statement to a lesser extent. Phil Fisher recommends an alternative approach. He prefers to research a company's management, its sale force, its research arm, its employee relations, and other qualitative factors to determine the growth in a company's earnings over the long term. I had assumed prior to reading this book that such an approach would add little value given the difficulty of predicting future earnings growth. I have not completely changed my mind after reading Fisher's book, but I do at least appreciate his perspective and think that formulating an opinion on a company's earnings growth drivers should matter in addition to determining whether a company's shares trade at a sufficiently low multiple to earnings, book value, and cash flow. Fisher argues from first principles in this book. As opposed to other great investment books including the Intelligent Investor, Security Analysis, and Investments by Bodie, Kane, and Marcus, this book falls short in its quantitative rigor. Fisher claims that dividends do not matter as much as most investors believe. I'd like to believe him. But I've also seen charts showing the long-term dominance of dividend-paying stocks over non-dividend paying stocks. Moreover, Fisher claims to favor growth stocks over value stocks with low price-to-earnings ratios. Over time, though, low price-to-earnings stocks outperform high price-to-earnings stocks. Again, I wanted to believe Fisher and favor a growth-investing philosophy; but I don't think the empirical data supports his earnestness for a growth over value approach. Nonetheless, this book challenged me and deserves kudos for its originality and boldness.

  7. 5 out of 5

    Isaac Breese

    Common Stocks And Uncommon Profits by Philip A. Fisher is a book about investments and how to be successful when investing in stocks. Fisher divides his book into three parts. First with common stocks, conservative investments, and developing an investment philosophy. In these sections Fisher emphasizes what to look for in a growth stock, the characteristics of a profitable business, and how his experiences in the stock market helped to develop his own philosophy. There are many things that I Common Stocks And Uncommon Profits by Philip A. Fisher is a book about investments and how to be successful when investing in stocks. Fisher divides his book into three parts. First with common stocks, conservative investments, and developing an investment philosophy. In these sections Fisher emphasizes what to look for in a growth stock, the characteristics of a profitable business, and how his experiences in the stock market helped to develop his own philosophy. There are many things that I like about this book. A few of these things are that it gives a very detailed description of what to look for in a profitable investment as well as what makes a good business. For example, in chapter three of section one Fisher explicitly describes in fifteen points, what to look for in a common stocks when you are planning to buy. Fisher also describes the characteristics of a good business in which he goes in depth in section two by explaining the management, strategic marketing, financial skill, and people that make up an excellent company. However, when he is explaining how the most successful companies operate, her often uses certain companies that are all in the same industry so the reader never really knows how businesses in other fields of interest to them operate and how they gain wealth as well. Although Fisher is very repetitive in the companies he uses in his examples, I would recommend this book to aspiring investors. This information this book gives is very detailed and it gives the reader insight on what to look for in a common stock including what to buy, when to buy, and when to sell. I

  8. 5 out of 5

    Caracalla

    Quick read and informative. Very interesting writing on the way successful companies work in the 1950's (not massively different to today). Touch of the Horatio Alger to stretches of the prose. Fisher basically says he gets all his information from his stockbroking pals which is bad news for any newbies and once sorta tells you to just go to an investment advisor instead of trying it yourself. His focus on information gather correlates with my experience of how difficult it is to find out about Quick read and informative. Very interesting writing on the way successful companies work in the 1950's (not massively different to today). Touch of the Horatio Alger to stretches of the prose. Fisher basically says he gets all his information from his stockbroking pals which is bad news for any newbies and once sorta tells you to just go to an investment advisor instead of trying it yourself. His focus on information gather correlates with my experience of how difficult it is to find out about companies. The low grade because of the fact it was a chore more than an interest/pleasure read.

  9. 5 out of 5

    Timothy Chklovski

    Not giving Phil Fisher 5-stars is a bit like saying "Renoir sux". Probably reflects more on me than on the author or book. Still, of the many investment books, this left me least comprehending how to develop confidence in a growth-type company, nor did it delve into non-profitable growth. One of the most valuable notions may be just that such companies exist -- and make for very rewarding investments. That said, BYD is likely a "Fisher" company. Not giving Phil Fisher 5-stars is a bit like saying "Renoir sux". Probably reflects more on me than on the author or book. Still, of the many investment books, this left me least comprehending how to develop confidence in a growth-type company, nor did it delve into non-profitable growth. One of the most valuable notions may be just that such companies exist -- and make for very rewarding investments. That said, BYD is likely a "Fisher" company.

  10. 4 out of 5

    Steve

    Dated, not worth reading. I'm sure it was groundbreaking when it was first written, but pretty mundane by any standard today. Dated, not worth reading. I'm sure it was groundbreaking when it was first written, but pretty mundane by any standard today.

  11. 4 out of 5

    Bryan Rhodes

    Good book. Pros: Gives a cool insight for the personal investor. Provides tons of info for (emphasis) long-term investing. Finding a few winners and riding them out for 30 years. (I was encouraged that someone as sophisticated an investor as Fisher invested in no more than 30 stocks at a time for his personal portfolio - no more than 9 later in life.) Cons: This book is very much written from the 1950s perspective. Fisher’s son is correct, the lessons from that perspective are timeless, but while Good book. Pros: Gives a cool insight for the personal investor. Provides tons of info for (emphasis) long-term investing. Finding a few winners and riding them out for 30 years. (I was encouraged that someone as sophisticated an investor as Fisher invested in no more than 30 stocks at a time for his personal portfolio - no more than 9 later in life.) Cons: This book is very much written from the 1950s perspective. Fisher’s son is correct, the lessons from that perspective are timeless, but while that’s true, it doesn’t make it more interesting, particularly. In all - good book, obviously. It is literally used as a textbook in the Stanford MBA program. But be prepared to glean a lot of lessons from 1950s mechanization and do your best to apply it to the industries of growth of today.

  12. 4 out of 5

    Isaac

    Very solid investment book. Old, but quite timeless. Covers just about every principle you need to consider when investing, and well. Growth focused, which isn't usually my thing, but worth reading for every investor. I even think it is more applicable and useful than The Intelligent Investor for the average person. 10/10 Very solid investment book. Old, but quite timeless. Covers just about every principle you need to consider when investing, and well. Growth focused, which isn't usually my thing, but worth reading for every investor. I even think it is more applicable and useful than The Intelligent Investor for the average person. 10/10

  13. 5 out of 5

    Mike Madden

    Sound advice...

  14. 5 out of 5

    Avinash Rao

    Hold the stocks of business that has a strong moat. Don't sell them just for the sake of selling. Hold the stocks of business that has a strong moat. Don't sell them just for the sake of selling.

  15. 4 out of 5

    Jackson

    Language is too old and long winded. The points raised may have been revolutionary at the time, however much of this knowledge is now available from blogs of prominent investors and presented in a language that's much more digestible. The main thing I got from this is do not worry about the price if the underlying business is solid and has such a magnificent runway for growth, and to conduct field research - called Scuttlebutt - in order to get an informational edge. Language is too old and long winded. The points raised may have been revolutionary at the time, however much of this knowledge is now available from blogs of prominent investors and presented in a language that's much more digestible. The main thing I got from this is do not worry about the price if the underlying business is solid and has such a magnificent runway for growth, and to conduct field research - called Scuttlebutt - in order to get an informational edge.

  16. 5 out of 5

    Shashank

    Look I understand where Fisher was going with this book and I still think he is one of the founders of value investing. However, there is a lot of non engaging material in the book, right from the introduction to the second last chapter. A lot of points on evaluation of the business are great and still hold relevance but otherwise I don't think I got a lot of out this. I guess this book hasn't aged well Look I understand where Fisher was going with this book and I still think he is one of the founders of value investing. However, there is a lot of non engaging material in the book, right from the introduction to the second last chapter. A lot of points on evaluation of the business are great and still hold relevance but otherwise I don't think I got a lot of out this. I guess this book hasn't aged well

  17. 4 out of 5

    John Hively

    Interesting book and point of view. Unfortunately, most small investors will not have the connections or the time Fischer recommends putting toward talking with people who work in high level positions in corporations you want to invest in. However, Fisher has some other advice that pertain to buying, selling and holding stocks.

  18. 4 out of 5

    Tim O'Hearn

    This book is significant and its author is a legend. However, we're kidding ourselves if we list this among investing must-reads in 2017. Phil Fisher pioneered an early type of long-term investing where he would pore over financial statements and call employees working every post of the company. You're wasting your time if you do this today. Back then, such fundamentals weren't priced in as efficiently as they are in today's markets, and Phil did well for himself (though nobody knows how well). H This book is significant and its author is a legend. However, we're kidding ourselves if we list this among investing must-reads in 2017. Phil Fisher pioneered an early type of long-term investing where he would pore over financial statements and call employees working every post of the company. You're wasting your time if you do this today. Back then, such fundamentals weren't priced in as efficiently as they are in today's markets, and Phil did well for himself (though nobody knows how well). How much of it was luck? We'll never really know. In Common Stocks and Uncommon Profits (and Other Writings) (2nd edition) you'll trudge through the entirety of Phil's investing philosophy. He invested through the Great Depression and WWII and came out with some actionable investing advice. His writing style is old-fashioned--certainly in a way that conveys eternal wisdom but not in a way that is conducive to one wanting to continue reading the book. I picked it up in 2014, resumed it last night, finished it today, and the sum of knowledge gained by this rapidly-aging pedant has been zero. Of particular interest was the idea in the mid-50s that "The very rich and the very poor each year grow smaller in number." I'm assuming this was true at the time of writing, but at some point became perpetually untrue. Phil Fisher doesn't cast a wide net of predictions, but one thing that impressed me was that his understanding of the future of semiconductors seemed to be ahead of its time (and correct). Part of me wished he could have predicted the consolidation of wealth and erosion of the middle class that was fueled largely by semiconductor technology, but that type of foresight would have been godly. He seems to be highly suspicious of diversification. He admits to practicing it but doesn't have a well-rounded approach. The benefits of diversification weren't published until the late sixties, if memory serves me correctly. While Phil gets a free pass, this book is dangerous to the uninitiated due to outdated advice such as what's contained here. For this reason, you should choose a modern book like A Random Walk Down Wall Street and avoid classics regardless of what Warren Buffet tells you to do. See this review and others on my blog

  19. 5 out of 5

    Andrew

    Fisher is known as a pioneer in in vesting in growth stocks, thus found the book to be more tailored for investing in growth stocks. The book was similar to an investing philosophy book but offered more instruction and tips on what to think about when looking at growth stocks on a qualitative level. His idea of the scuttlebutt method is a classic for sure. If you're interested in growth investing it's worth checking out. My summary of the book is below: 0. Prior Warren Buffett has called himself 8 Fisher is known as a pioneer in in vesting in growth stocks, thus found the book to be more tailored for investing in growth stocks. The book was similar to an investing philosophy book but offered more instruction and tips on what to think about when looking at growth stocks on a qualitative level. His idea of the scuttlebutt method is a classic for sure. If you're interested in growth investing it's worth checking out. My summary of the book is below: 0. Prior Warren Buffett has called himself 85% Graham and 15% Fisher Fisher specialized in innovative firms driven by R&D Pioneer in field of growth investing 1. Clues from the past States even thought inventors try to time the cycle the best returns come from holding great companies for many years Investing in stocks is good as the idea and environment are good 2. What “scuttlebutt” can do? Investors goal to find good companies that will generate good returns Scuttlebutt method - how to find good companies - takes advantage of the business grapevine - by talking to stakeholders Fisher says speak to suppliers customers researchers employees ex employees 3. What to buy - the fifteen points to look for in a common stock 15 questions must be answers about each company If the answers are yes that is good Separate firms that are able and ones that are fortunate as the able one will continue to grow and the fortunate ones will stall 1 - does the company have market potential to grow sales in coming years Is the management skilled and is growing market and product lines to increase sales even in mature industries 2 - does management institute policies that result in newly developed products Related to management attitude 3 - how effective is the company’s research and development? Not just amount of R&D but how well it is R&D where the product is already successful is good 4 - does the company have above average sales organization? Repeat sales to satisfied customers the first benchmark of success Hard to research so use scuttlebutt to ask employees/customers 5 - does the company have a worthwhile profit margin? Temporary effects can lower or raise margins r&d builds for the future but lowers margins 6 - what is the company doing to improve? Increase price? Change profit margins? 7 - does the company have outstanding labor relations? If labor has not been unionized a clue that workers have not felt the need to do so Look at worker turnover 8 - does the company have outstanding executive relations? 9 - does the company have management depth? Authority sut be delegated 10 - how good is the company's cost analysis? Cannot have success unless it can breakdown costs by product Scuttlebutt method help with this - shoe companies that are bad at this 11 - are there other clues which show the company to be outstanding relative to its peers? Catch all for everything else Ex - Leasing costs /real estate management, lower insurance costs 12 - does the company maximize long term or short term profits? Does the company force suppliers to offer the lowest price or does it pay more to focus on partnership Will it help customers in a jam 13 - will substantial equity dilution be avoided to finance the business’ growth? If its meets the other criteria it will be able to borrow money If already at a high debt level should be cautious 14 - does management continue to speak freely to investors when disappointments occur? How management reacts is important If management panis or does not have a plan that’s a no go 15 - does management have unquestionable integrity? Management can enrich himself sat shareholders expenses 4. What to buy - applying this to your own needs Investment strategy should be tailored to financial situation Recommends growth stocks for all types of investors While you can get good bargains value investing the small upside of 50% does not compare compared to growth investing Two categories of growth stocks Large and continue to grow (IBM, Dow and DuPont) Suggests these for safety and could still have good upside Those undiscovered by institutional investors These have the most potential for returns but also could be duds If you want more risk take these Says if you don’t have the time to research get a money manager - but you shoul still understand what is going on 5. When to buy Trying to study economic condition on when to buy does not work Tailor investing to opposite market sentiment of the securities Inevitable companies will not have a failure at one point Market will produce pullbacks - this is a good time to jump in 6. When to sell - and when not to Three financial reasons for selling Sell if investor made a mistake Sell if company does not possess factors on why you liked it anymore Management changed, company is too large now Sell if better opportunities out there Don’t sell if you think its overvalued or the price has advanced Will only take a few years to have the valuation actually catch up and can never predict a bear market 7. The hullabaloo about dividends If management is building up excess cash and doing suboptimal returns dividends are good Growth inventors shouldn't find dividends appealing Why invest then pay tax and invest again Even costs to re invest for pension funds Fisher recommends management pay a % of earnings a slowly raise is as earnings increase Believes investors should not worry about dividend policy a lot 8. Five don’ts for investors 1 - don't buy unestablished companies Too many points of weakness 2 - don’t ignore a stock just because it is over the counter Rules for OTC are not too different from exchanges 3 - don't buy stock because of the tone of its annual report Look at facts of 10k not skill of IR by nice decks and colors 4 - don’t assume stock prices already discounts high future earnings growth Stock may trade at 2x pe of market because of earnings growth Analysts will say prices discount to future growth Be cautious - as company will grow but pe should not be higher than average company (as they will grow too) 5 - don't quibble over the ask price Some cases investors will issue limit orders to not pay the ask price In order to save a few bucks investor may costs himself in the long run If the company is a great company the gains far outweigh a few dollars saved for a better price 9. Five more don’ts for investors 1 - don't be too diversified Benefits of diversification are over stressed Know your few companies well Have 5 stocks 2 - don't be afraid to buy on a war scare Buy on dips 3 - dont be influenced by what doesn't matter People will be influenced by past share price its pas p/e and make assumptions on valuation Argues past valuation levels are not relevant and investor should look forward 4 - don’t fail to consider the right time to buy a growth stock Timing and price both matter for growth stocks If price is overvalued wait 5 - don't follow the crowd Not easy as everyone is influenced by world around us See through waves of optimism and pessimism These waves will inflate and default ratios making opportunities 10. How i go about finding a growth stock He used to get is ideas from executive contacts He gets most of his ideas from hearing about the investments of other investors he respects He rarely finds ideas in print media Once he find some good ideas he does scuttlebutt method Do the research before you meet management

  20. 5 out of 5

    James Lan

    The book was really good in giving you the mindset of how to find and what to look for in the potential winning stocks. In this book, it is mainly focusing on looking at the company's fundamental. The book teaches you how to use the scuttle butt method or a method that is used to extract information related to the company's performance and evaluate whether this company is worthwhile for investment. Moreover, it also teaches when to buy and more importantly when to sell. It also point out common The book was really good in giving you the mindset of how to find and what to look for in the potential winning stocks. In this book, it is mainly focusing on looking at the company's fundamental. The book teaches you how to use the scuttle butt method or a method that is used to extract information related to the company's performance and evaluate whether this company is worthwhile for investment. Moreover, it also teaches when to buy and more importantly when to sell. It also point out common mistakes of investors to remind what not to do and what to watch out. The most important part and the part that I find to be very useful is the last chapter of this book which discuss about the investment philosophy and the author prior investment examples, which he elaborated in a bibliography-like story. Because there are so many investment principles in this book, the author kindly wrote down summary of every chapters and everything he discussed in the book at the end of the last chapter. The book really taught me a lot and I found it to be very useful and applicable, even in Thai's market. Personally, I really like the part where he discussed about new things in the company; he said "one should look for a company that do 'research' to create 'new products' that can generate a strong revenue for the company at least several years and the revenue should cover the whole researching cost for it to be a worthwhile investment". I'm strongly recommending this book to anyone who are seriously looking for a good investment book and for those who work in the financial field especially one who works in brokerage firms. They must have this book! Warren Buffet said that he listens to whatever Phillip A. Fisher said. I believe now that make two of us.

  21. 4 out of 5

    Matthew

    An excellent and thoughtful book on the investing process. It also debunks my previous conception of value investing as going only for old, staid companies, Fisher makes a beeline for the growth-oriented stocks that he thinks will multiply several fold in value over the coming years -- only he won't overpay for them. I like, also, the short autobiography at the end, especially his quotation of Shakespeare: "There is a tide in the affairs of men which, taken at the flood, leads on to fortune." Str An excellent and thoughtful book on the investing process. It also debunks my previous conception of value investing as going only for old, staid companies, Fisher makes a beeline for the growth-oriented stocks that he thinks will multiply several fold in value over the coming years -- only he won't overpay for them. I like, also, the short autobiography at the end, especially his quotation of Shakespeare: "There is a tide in the affairs of men which, taken at the flood, leads on to fortune." Strikingly, parts of the book seem so fresh and relevant, written as they are some two decades ago. This makes me wonder: perhaps an age, an era, is less defined by technology/infrastructure and more by whether the thoughts and ideas of men in earlier years continue to be echoed by those of later years. Some peripheral details, of course, are no longer relevant, but much of the investment process, the observations of investor behavior, the insights on good management, still resonate. Coincident to this, the Shakespeare quote was written before the stock market evolved! I don't think we're quite in the same era though; however, it is curious to imagine what Shakespeare observed to make such comments. I wonder if it is from a History play - perhaps men's fortunes in politics are shaped as much by seizing opportunity and riding momentum as they are in investing.

  22. 5 out of 5

    Amir

    The great investor Phillip Fisher wrote this book more than fifty years ago. In this book Mr. Fisher describes interesting ways of acquiring more information about companies that you wish to invest in. He describes how to identify outstanding companies, how to determine companies' competitive advantages, and what to look for when buying a company, as well as when to sell a company and when not to. Don't miss reading part two of the book, "Conservative investors sleep well." This book is a must fo The great investor Phillip Fisher wrote this book more than fifty years ago. In this book Mr. Fisher describes interesting ways of acquiring more information about companies that you wish to invest in. He describes how to identify outstanding companies, how to determine companies' competitive advantages, and what to look for when buying a company, as well as when to sell a company and when not to. Don't miss reading part two of the book, "Conservative investors sleep well." This book is a must for those who are investing from a business point of view. The book provided a great framework and understanding of the questions that you need to ask before investing in a company and where one should look for answers. The author even utilizes a method that is more common today than in the past - a list of don'ts. Many of the companies that appear in the book do not exist anymore but I believe that the book lessons are as valid as they were 50 years ago. Many will say “these are simple and basic lessons”, but how many investors really go through his checklists and discover the true business behind the ticker? Highly recommended for the business mind investor

  23. 5 out of 5

    Mindy

    The language and style of this book is not my cup of tea. This book was difficult for me to understand. It was great to know that the lessons I learned from investing are the same as discussed in the book. Never sell. I also learned many more about investing such as it is better to choose stock that give no or low dividend. Instead of paying dividends, the company can reinvest the money by using it on products and technologies. This book is three books combined into one: 1. Common Stocks and Uncom The language and style of this book is not my cup of tea. This book was difficult for me to understand. It was great to know that the lessons I learned from investing are the same as discussed in the book. Never sell. I also learned many more about investing such as it is better to choose stock that give no or low dividend. Instead of paying dividends, the company can reinvest the money by using it on products and technologies. This book is three books combined into one: 1. Common Stocks and Uncommon Profits 2. Conservative Investors Sleep Well 3. Developing an Investment Philosophy Common Stocks and Uncommon Profits discusses how to pick growth stocks, when to buy and sell. Research and investigate companies by first looking at their financial reports. And then talking to their competitors, employees, and management. Ask questions such as: "What are you doing that your competitors aren't doing yet?" "What do you consider to be the most important long-range problem your company is facing?" "What this company do that others would not be able to do as well?" Use good judgement & cross-checking. You "souttebutt" by: 1. Go to 5 companies in an industry and ask each of them intelligent questions about the strength and weakness of the other 4 companies. 2. Ask vendors and customers about the company's real nature. 3. Ask research scientists in universities, governments, and in competitive companies. 4. Ask former employees for inside view of company's strength and weakness. Also, ask them why did they left the company. When Fisher select stocks, he used 15 points which had to do with management, technological change, development research, sales organization, and production. Part 2 - Conservative Investors Sleep Well is about the 4 dimensions of a Conservative Investment. The 1st dimension is the company's operation or production. Look for companies that have competence managers in production, marketing, research, and financial controls. Select companies that doesn't cost much to operates or produces. The company needs to recognize the public taste, understand what the potential buyers really want and react to these changes promptly. Market by explaining the advantages in the buyer's terms. Part of the technological effort is to create new and better products, or perform services in a better way or at a lower cost than in the past. Also, to develop product that has significant demand and be sold using the company's existing marketing organization, and the cost to produce it will yield a worthwhile profit. A company with a strong financial team can detect the threats to the profit plan quickly It can tell which products have the highest potential to make money, and where production, marketing, and research costs are inefficient. The company will have better control of receivables and inventory. Second dimension has to do with the results produced and will continue to be produced by the quality of the people that runs the operation or production and the policies they create. Find companies where top management take the time to identify and train qualified and motivated juniors to succeed senior management whenever a replacement is needed. When a large company need to hire a new CEO from outside, that is a sign that something is wrong with the existing management. Although an advantage with hiring from outside is that it can bring a new perspective into the corporate councils, and to challenge the accepted way as the best way by adding fresh ideas. To know whether a management is predominately by one man or a working team, check the annual salaries of the top managements in the proxy statement. If the salary of the top manager is very much more than the next 2 or 3, that is a warning that it is manage mainly by one person. If it's running by a team, this information doesn't tell if it's a good team or not. A good management team would also do everything reasonable to create a good working environment and take care of its employees' interest. The employees are not afraid to voice their thoughts and opinions. This culture would increase the productivity and lower the costs. A growth company would not try to show the greatest possible profits at the end of each accounting period. It focuses on if the earning and profit are enough to finance the costs of expanding the business. The 3rd dimension deals with the business characteristics. Leaders in the industry creates a strong competitive advantage that defend itself from new competitors. The company that has a high rate of sales in relation to assets may be a more profitable company than one with a higher profit margin to sales but a lower rate of sales turnover. The 4th dimension is the appraisal of the financial community. Conservative investors are aware of the nature of the current financial community appraisal of the industry that you are interested in. High interest rate lowers the level of all stocks. There will be a lot of stocks being sold. Lower interest rate raises the stock level as investors buys. Part 3 - Developing an Investment Philosophy discusses the lessons and experiences of the author as an investor. To determine if a stock is cheap or overpriced, look at its ratio to the earning in a few years ahead. If you believe a stock would rise in a few years to several times its current price, there is very little difference between if you buy at $10 or $10.25. Same with selling. It maybe better to invest in a company with no or little dividends. The investor can profit more when the company reinvest into products and technologies. When management fails to grow as the company grows, it is time to sell.

  24. 5 out of 5

    Jimmy Huynh

    A well written book on the fundamentals of long position strategy. Fisher goes into detail in explaining the rationality behind each of his recommendations/strategies. Fisher uses fictional examples as well as sharing his real life experiences as well. Specifically, I found his 15 point system to be relevant as opposed to the many outdated finance strategies/books out there as well as his approach on finding & researching growth stocks towards the end of the book. Overall a great book and I reco A well written book on the fundamentals of long position strategy. Fisher goes into detail in explaining the rationality behind each of his recommendations/strategies. Fisher uses fictional examples as well as sharing his real life experiences as well. Specifically, I found his 15 point system to be relevant as opposed to the many outdated finance strategies/books out there as well as his approach on finding & researching growth stocks towards the end of the book. Overall a great book and I recommend it to all who are interested in long-term growth stocks.

  25. 4 out of 5

    deleted d

    read only the summary think long term ignore mr market research your companies well look to buy when there's a temporary drop in the stock price To be a successful investor, you have to be willing to dig. A company’s true value is based on so much more than its stock price alone! If you’re willing to put in the detective work, you stand to reap great rewards no matter whether you’re a conservative investor or a high-risk one. read only the summary think long term ignore mr market research your companies well look to buy when there's a temporary drop in the stock price To be a successful investor, you have to be willing to dig. A company’s true value is based on so much more than its stock price alone! If you’re willing to put in the detective work, you stand to reap great rewards no matter whether you’re a conservative investor or a high-risk one.

  26. 4 out of 5

    Roope Keto

    I try to summarize this book really briefly: This book emphasizes growth. And that's easily understandable when you take fishers's attitude of long-term holding. So, you look for a company with a potential and competence. "it's better to get great company with a good prize than a good company with a great price" I try to summarize this book really briefly: This book emphasizes growth. And that's easily understandable when you take fishers's attitude of long-term holding. So, you look for a company with a potential and competence. "it's better to get great company with a good prize than a good company with a great price"

  27. 4 out of 5

    Gabriel Pinkus

    Buffett said he's 85% Graham and 15% Fisher... I can now see why. Fisher goes beyond the 10K. Fisher's teachings have inspired me to learn about business in a new dimension, allowing me to look at a company's core business, operations, and management, and see how that information might not be reflected in financial statements. Must-read for any investor. Buffett said he's 85% Graham and 15% Fisher... I can now see why. Fisher goes beyond the 10K. Fisher's teachings have inspired me to learn about business in a new dimension, allowing me to look at a company's core business, operations, and management, and see how that information might not be reflected in financial statements. Must-read for any investor.

  28. 4 out of 5

    Vilmantas

    This is one of the greatest books of investment in history. It's not a surprise that this is one of the top picks by Warren Buffett. In addition, Warren Buffett is using P.A.Fisher's philosophy in his investing. If you want to become smart value investor - it's a must read. Don't invest until you read this book. Good luck in your journey, my friend. ;) This is one of the greatest books of investment in history. It's not a surprise that this is one of the top picks by Warren Buffett. In addition, Warren Buffett is using P.A.Fisher's philosophy in his investing. If you want to become smart value investor - it's a must read. Don't invest until you read this book. Good luck in your journey, my friend. ;)

  29. 5 out of 5

    Caleb Philbrick

    One of the great investment texts. Fisher goes beyond the annual report and suggests that investors dig deeper into fundamentals, focusing on high quality/high return businesses. He posits that the best time horizon is forever, certainly an approach taken by Buffett, who was significantly impacted by Fisher.

  30. 4 out of 5

    Alaeddin Hallak

    The key message in this book: To be a successful investor, you have to be willing to dig. A company’s true value is based on so much more than its stock price alone! If you’re willing to put in the detective work, you stand to reap great rewards no matter whether you’re a conservative investor or a high-risk one.

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