6/19/2023 0 Comments Scuttlebutt investing![]() Along with Thomas Rowe Price, Jr., Fisher is one of the early proponents of the growth investing strategy. That talks about really strong growth mindset management and finally Businessįactors that talks about the key business characters to look for.Philip Arthur Fisher (Septem– March 11, 2004) was an American stock investor best known as the author of Common Stocks and Uncommon Profits, a guide to investing that has remained in print since it was first published in 1958. In evaluating promising firms” which are classified into 3 parts: Functionalįactors that talk about the Firm`s functional characteristics, People factor Well but “clam up” when troubles or disappointments occur?Ĭompany have a management of unquestionable integrity?īest Message I took from the book other than above: The Appendix of this book has “Key factors Management talk freely to investors about its affairs when things are going The company may be in relation to its competitors?Ĭompany have a short-range or long-range outlook to profits?įoreseeable future will the growth of the company require sufficient equityįinancing so that the large number of shares that are outstanding will largelyĬancel the existing stockholder’ benefit from this anticipated growth? ![]() Involved, which will give the investor important clues as to how outstanding There other aspects of the business, somewhat peculiar to the industry The company doing to maintain or improve profit margins?Ĭompany have outstanding labor and personnel relations?Ĭompany have outstanding executive relations?Īre the company’s cost analysis and accounting controls? Potentials of currently attractive product lines have been exploited?Įffective are the company’s research and development efforts in relation to itsĬompany have an above-average sales organization? That will still further increase total sales potentials when the growth Management have a determination to continue to develop products or processes Possible a sizeable increase in sales for at least several years? This might not be sacrosanctīut all 15 points should be part of a larger checklist one maintains.Ĭompany have products or services with sufficient market potential to make Below are the 15 questions which canīe used even today before making any investments. We can see in the below video Buffet referring to this book during the Berkshire Hathaway 2018 annual conference,įisher had published a ‘15 Points checklist’ to analyzeīefore buying any company as investment. ![]() This is Phil Fisher had deep influences in Warren Buffet`s investment philosophies. He had explained this process really in detail in his most famous classic “Common Stocks and Uncommon Profits”. Fisher also provides in his book Common Stocks and Uncommon Profits a list of 15 different questions, some best asked and information obtained from external sources while others will be best asked to directly to company`s management. But Phil Fisher applies Scuttlebutt technique to enquire or analyze about a firm he is interested in by having conversations with company`s customers, employees, management, competitors. Scuttlebutt meaning is rumor or gossips that typically derives from casual water cooler conversations. Legendary investor Philip Fisher introduced investors to the concept of Scuttlebutt Investing through this book. I would recommend Common Stocks and Uncommon Profits book as the first book to read for someone who wants to start investing in markets. This is by far the best Investment books if we list out top 10 in the order of ease of understanding, nuances in detailing and articulation of strong investment philosophies. ![]()
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