He advices the investor to speak to the management, employees and customer and get a good sense of the culture and challenges. Moat : There should be sufficient barriers to entry in the product line up to prevent other players from entering the same market and usurping the incumbent player (think IPhone).Apart from these key message he also belabours upon the "Scuttlebutt" approach most of which I found to be quite irrelevant for retail investors, because this approach requires deep understanding of the company, its management, its customers, its debtors et al. New Growth : The company should be able to find new avenues of growth if the current lines dry up, either through Research and Development or through inorganic acquisitions.3. Growth companies : The company should be in a growth sector meaning it sales should grow to perpetuity.2. He begins by saying that the best time to sell a stock is "never" which he practiced himself when he held the stocks of Motorola, Texas Instrument and Raychem for the entirety fo his life, although his son in the preface admits that by the end of his fathers career, he had become recalcitrant to the new stock while solely focusing on the above mentioned three top stocks.The book can be surmised by the following philosophies :1. As you move further he buttress his views with data and practical example. Although it is dated in some sense, however the core message remains quite relevant even in today's time, as much it did perhaps 70 years ago, when the book was originally written.Philips Fisher introduces the reader with the "Scuttlebutt" approach to stock picking, quite early on in the book. Recommended by Buffet himself this book is one of the classics, as you already probably know. I have always wondered, as to why does Warren buffet buy certain stocks, while avoiding equally good others ? If you read this book you will know for sure. Why does Warren buffet buy Apple and not Amazon "My own copy has underlinings and marginal thoughts throughout." John Train author of Dance of the Money Bees About the Author "My own copy has underlinings and marginal thoughts throughout." John Train author of Dance of the Money Bees everyone will profit from ponderingas Warren Buffett has donethe investment principles Fisher espouses." James W. "Little known to the public, rarely interviewed and accepting few clients, Philip Fisher is nevertheless read and studied by most thoughtful investment professionals. A thorough understanding of the business, obtained by using Phil's techniques.enables one to make intelligent investment commitments." Warren Buffett When I met him, I was impressed by the man as by his ideas. "I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits. He recorded these philosophies in Common Stocks and Uncommon Profits, a book considered invaluable reading when it was first published in 1958, and a must-read today.Īcclaim for Common Stocks and Uncommon Profits His investment philosophies, introduced almost forty years ago, are not only studied and applied by today's finance professionals, but are also regarded by many as gospel. Widely respected and admired, Philip Fisher is among the most influential investors of all time. "You will find lots of jewels in these pages that may do as much for you as they have for me." from the Introduction by Kenneth L. "I am an eager reader of whatever Phil has to say, and I recommend him to you." Warren Buffett
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