Philip Fisher “Common stocks and uncommon profits and others writings” focuses on the qualitative aspects of a business, moving beyond simple balance sheet analysis to evaluate the true potential of an enterprise.
A fifteen-point checklist is introduced, designed to help investors identify businesses with exceptional management teams and strong prospects for sustained growth. Central to the philosophy is the scuttlebutt method, which encourages investors to conduct independent research by speaking with competitors, suppliers, and customers to gain an accurate picture of a company’s operations and reputation.
Buying a truly great enterprise and holding it for decades will generate massive returns, minimizing taxes and transaction costs. It is important to understanding a company’s research and development capabilities, profit margins, and sales organization. By ignoring short-term market fluctuations and concentrating on fundamental business quality, investors can build substantial wealth through holding superior equities over a lifetime.
Common stocks and uncommon profits
FISHER, Philip A. and FISHER, Ken, 2003. Common Stocks and Uncommon Profits and Other Writings. New York: Wiley. ISBN 978-0-471-44550-0.