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Common Stocks and Uncommon Profits and Other Writings
"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. Fisher Forbes columnist
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 finance professionals, but are also regarded by many as gospel. 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.
Acclaim for Common Stocks and Uncommon Profits
"I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits...When I met him, I was impressed by the man as by his ideas. A thorough understanding of the business, obtained by using Phil's techniques...enables one to make intelligent investment commitments."-Warren Buffett
"Little known to the public, rarely interviewed and accepting few clients, Philip Fisher is nevertheless read and studied by most thoughtful investment professionals . . . everyone will profit from pondering-as Warren Buffett has done-the investment principles Fisher espouses."-James W. Michaels Editor, Forbes
"My own copy [of Common Stocks and Uncommon Profits] has underlinings and marginal thoughts throughout."-John Train Author of Dance of the Money Bees
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 finance professionals, but are also regarded by many as gospel. 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.
Acclaim for Common Stocks and Uncommon Profits
"I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits...When I met him, I was impressed by the man as by his ideas. A thorough understanding of the business, obtained by using Phil's techniques...enables one to make intelligent investment commitments."-Warren Buffett
"Little known to the public, rarely interviewed and accepting few clients, Philip Fisher is nevertheless read and studied by most thoughtful investment professionals . . . everyone will profit from pondering-as Warren Buffett has done-the investment principles Fisher espouses."-James W. Michaels Editor, Forbes
"My own copy [of Common Stocks and Uncommon Profits] has underlinings and marginal thoughts throughout."-John Train Author of Dance of the Money Bees
288 pages, Paperback
First published November 30, 1957
2013 people are currently reading
33365 people want to read
About the author
Philip A. Fisher
22 books193 followersPhilip Arthur Fisher 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 ever since it was first published in 1958.
His career began in 1928 when he dropped out of the newly created Stanford Graduate School of Business (later he would return to be one of only three people ever to teach the investment course) to work as a securities analyst with the Anglo-London Bank in San Francisco.
Fisher's famous "Fifteen Points to Look for in a Common Stock" from "Common Stocks and Uncommon Profits" are a qualitative guide to finding well managed companies with growth prospects.
His career began in 1928 when he dropped out of the newly created Stanford Graduate School of Business (later he would return to be one of only three people ever to teach the investment course) to work as a securities analyst with the Anglo-London Bank in San Francisco.
Fisher's famous "Fifteen Points to Look for in a Common Stock" from "Common Stocks and Uncommon Profits" are a qualitative guide to finding well managed companies with growth prospects.
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March 25, 2016
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.
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.
February 4, 2012
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..
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..
April 25, 2017
رویکرد سرمایه گذاری وارن بافت در سهام به دو صورت بوده است یکی شرکت های ته سیگاری که از بنجامین گراهام یاد گرفته است به این صورت که همان گونه که ته سیگاری هایی در کف خیابان ریخته شده اند را می شود برداشت و از پک آخرش به رایگان کشید، در بازار سهام نیز شرکت هایی وجود دارند که مانند ته سیگاری در گوشه ای افتاده اند و پایین تر از قیمت واقعیشان قیمت گذاری شده اند، وارن با خرید این سهم های ارزان در کف قیمت و اعتقاد به این که روزی این سهم ها به قیمت واقعی شان برمیگردند، منفعت می برد. کتابی که فیشر نوشته است صورت دوم رویکرد وارن بافت را نشان می دهد که آن خرید سهم های گران قیمت است
سهم های فیشری سهم های شرکت های رشدی هستند که دارای پارامترهای خوب بازار و مدیریت می باشند، در زیر باید ها و نبایدهای فیشری در مورد این شرکت ها را بخوانید:
https://farachart.com/4217
در واقع این کتاب به معرفی شرکت های پیشتاز بازار و خرید سهام آن ها و نگه داری سهام و نفروختن این سهام تا پایان عمر می پردازد، درس های سرمایه گذاری خوبی می شود از فیلیپ فیشر آموخت که به حق دید خوبی در حوزه ی سرمایه گذاری به افراد می دهد. من کتاب سرمایه گذار هوشمند بنجامین گراهام را که بخش هایی از آن به فارسی ترجمه شده است را یک سال پیش خواندم، از آن کتاب چیز زیادی متوجه نشدم، ولی این کتاب به عنوان دومین کتاب در حوزه ی بازار سهام را به همه توصیه میکنم
متن و نگارش کتاب اصلاً مهیج و چشم نواز نیست و نویسنده قصد ندارد که شما را سرگرم کند، ولی اگر صبوری کنید و کتاب را تمام کنید؛ مجهز به خرد والای نویسنده می شوید.
از نظر فیشر، تحقیق، نقش کلیدی در سرمایهگذاری موفق دارد. او کلمه
«scuttlebutt»
را وضع کرد که شاید مهمترین جنبهی فلسفهی سرمایهگذاری وی باشد
«scuttlebutt»
یعنی این که یک سرمایه گذار برود و تحقیق کند و مکان شرکت را ببیند از دیگران و کارکنان آن شرکت درباره ی آن شرکت سوال بپرسد. برای من
خیلی عجیب بود که اسکاتلبات (این کار به این سادگی) مهم ترین اصل سرمایه گذاری یکی از نوابغ این کار است
فیشر معتقد بود که اگر شرکتی نکتههایی که تعیینکنندهی پتانسیل رشد بلندمدت شرکت هستند را رعایت کند سهام آن شرکت علیرغم هرگونه زیان کوتاهمدت، نهایتا در درازمدت به سود میانجامد. او گفتهی معروفی دارد مبنی بر اینکه اگر با تحقیق و تحلیل گسترده، شرکت درستی خریداری کنید، وقت فروش سهام آن، تقریبا «هیچوقت» خواهد بود.
https://farachart.com/4025
سهم های فیشری سهم های شرکت های رشدی هستند که دارای پارامترهای خوب بازار و مدیریت می باشند، در زیر باید ها و نبایدهای فیشری در مورد این شرکت ها را بخوانید:
https://farachart.com/4217
در واقع این کتاب به معرفی شرکت های پیشتاز بازار و خرید سهام آن ها و نگه داری سهام و نفروختن این سهام تا پایان عمر می پردازد، درس های سرمایه گذاری خوبی می شود از فیلیپ فیشر آموخت که به حق دید خوبی در حوزه ی سرمایه گذاری به افراد می دهد. من کتاب سرمایه گذار هوشمند بنجامین گراهام را که بخش هایی از آن به فارسی ترجمه شده است را یک سال پیش خواندم، از آن کتاب چیز زیادی متوجه نشدم، ولی این کتاب به عنوان دومین کتاب در حوزه ی بازار سهام را به همه توصیه میکنم
متن و نگارش کتاب اصلاً مهیج و چشم نواز نیست و نویسنده قصد ندارد که شما را سرگرم کند، ولی اگر صبوری کنید و کتاب را تمام کنید؛ مجهز به خرد والای نویسنده می شوید.
از نظر فیشر، تحقیق، نقش کلیدی در سرمایهگذاری موفق دارد. او کلمه
«scuttlebutt»
را وضع کرد که شاید مهمترین جنبهی فلسفهی سرمایهگذاری وی باشد
«scuttlebutt»
یعنی این که یک سرمایه گذار برود و تحقیق کند و مکان شرکت را ببیند از دیگران و کارکنان آن شرکت درباره ی آن شرکت سوال بپرسد. برای من
خیلی عجیب بود که اسکاتلبات (این کار به این سادگی) مهم ترین اصل سرمایه گذاری یکی از نوابغ این کار است
فیشر معتقد بود که اگر شرکتی نکتههایی که تعیینکنندهی پتانسیل رشد بلندمدت شرکت هستند را رعایت کند سهام آن شرکت علیرغم هرگونه زیان کوتاهمدت، نهایتا در درازمدت به سود میانجامد. او گفتهی معروفی دارد مبنی بر اینکه اگر با تحقیق و تحلیل گسترده، شرکت درستی خریداری کنید، وقت فروش سهام آن، تقریبا «هیچوقت» خواهد بود.
https://farachart.com/4025
February 21, 2018
What to buy
15 points:
1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?
3. How effective are the company's research and development efforts in relation to its size?
4. Does the company have an above -average sales organization?
5. Does the company have a worthwhile profit margin?
6. What is the company doing to maintain or improve profit margins?
7. Does the company have outstanding labor and personnel relations?
8. Does the company have outstanding executive relations?
9. Does the company have depth to its management?
10. How good are the company's cost analysis and accounting controls?
11. Are there other aspects of the business, peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition?
12. Does the company have a short-range or long-range outlook in regard to profits?
13. In the foreseeable future will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing stockholders benefit from this anticipated growth?
14. Does the management talk freely to investors about its affairs when things are going well but "clam up" when troubles and disappointments occur?
15. Does the company have a management of unquestionable integrity?
5 Don'ts:
1. Don't buy into promotional companies.
2. Don't ignore a good stock just because it's traded "over the counter".
3. Don't buy a stock just because you like the "tone" of its annual report.
4. Don't assume that the high price at which a stock may be selling in relation to earnings is necessarily an indication that further growth in those earnings has largely been already discounted in the price.
5. Don't quibble over eights and quarters.
Five more don'ts for investors:
1. Don't over stress diversification.
A: 5 great companies each max 20%, highest class growth stocks
B: 10 moderate risk/reward companies with each max 10%
C: maximum 5% in each with maximum possibility and risk for complete loss
2. Don't be afraid of buying on a war scare
3. Don't be influenced about what doesn't matter.
4. Don't fail to consider time as well as price in buying a true growth stock.
5. Don't follow the crowd
"There are fads and styles in the stock market just as there are in women's clothes" p. 156
"The young growth stock offers by far the greatest possibility of gain. Sometimes this can mount up to several thousand per cent in a decade" p. 85
"Without sales, survival is impossible. It is the making of repeat sales to satisfied customers that is the first benchmark of success" p. 59
"Scuttlebutt" method: " Go to five companies in an industry, ask each of them intelligent questions about the points of strength and weakness of the other four, and nine times out of ten a surprisingly detailed and accurate picture of all five will emerge."
15 points:
1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?
3. How effective are the company's research and development efforts in relation to its size?
4. Does the company have an above -average sales organization?
5. Does the company have a worthwhile profit margin?
6. What is the company doing to maintain or improve profit margins?
7. Does the company have outstanding labor and personnel relations?
8. Does the company have outstanding executive relations?
9. Does the company have depth to its management?
10. How good are the company's cost analysis and accounting controls?
11. Are there other aspects of the business, peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition?
12. Does the company have a short-range or long-range outlook in regard to profits?
13. In the foreseeable future will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing stockholders benefit from this anticipated growth?
14. Does the management talk freely to investors about its affairs when things are going well but "clam up" when troubles and disappointments occur?
15. Does the company have a management of unquestionable integrity?
5 Don'ts:
1. Don't buy into promotional companies.
2. Don't ignore a good stock just because it's traded "over the counter".
3. Don't buy a stock just because you like the "tone" of its annual report.
4. Don't assume that the high price at which a stock may be selling in relation to earnings is necessarily an indication that further growth in those earnings has largely been already discounted in the price.
5. Don't quibble over eights and quarters.
Five more don'ts for investors:
1. Don't over stress diversification.
A: 5 great companies each max 20%, highest class growth stocks
B: 10 moderate risk/reward companies with each max 10%
C: maximum 5% in each with maximum possibility and risk for complete loss
2. Don't be afraid of buying on a war scare
3. Don't be influenced about what doesn't matter.
4. Don't fail to consider time as well as price in buying a true growth stock.
5. Don't follow the crowd
"There are fads and styles in the stock market just as there are in women's clothes" p. 156
"The young growth stock offers by far the greatest possibility of gain. Sometimes this can mount up to several thousand per cent in a decade" p. 85
"Without sales, survival is impossible. It is the making of repeat sales to satisfied customers that is the first benchmark of success" p. 59
"Scuttlebutt" method: " Go to five companies in an industry, ask each of them intelligent questions about the points of strength and weakness of the other four, and nine times out of ten a surprisingly detailed and accurate picture of all five will emerge."
April 6, 2013
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.
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.
July 21, 2014
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.
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.
March 10, 2021
Besides casual racism, chauvinism, and not being up to date with the company lifecycle, this book is quite good.
Also advice to just call some white male friends, because they HAVE TO have at least one friend from college in the company you want to invest in, and tell them to just schedule a call with the CEO seems to me beyond imagination.
Also advice to just call some white male friends, because they HAVE TO have at least one friend from college in the company you want to invest in, and tell them to just schedule a call with the CEO seems to me beyond imagination.
March 27, 2016
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.
July 23, 2017
This book is so special that I'm giving it 2 reviews!
1. My satirical review:
The passive voice is most affectionately loved by Philip A. Fisher. It is believed by him that the passive voice should be used as frequently as possible so that clarity can be added. If it is not used frequently enough, then the book might not be understood. That which is said by Fisher in this book could not be more clearly stated by anyone than as it is said by him. This book should be bought by everyone so that the correct stocks can be held by them for the correct amounts of time so that losses are minimally experienced.
2. My actual review:
Fisher outlines excellent principles for investing, especially qualitative concepts like the “Scuttlebutt” method. His “fifteen points” for evaluating a company are highly useful to investors across the value and growth style spectrum. His "5 Don'ts for Investors" and "5 More Don'ts for Investors" are great lists as well.
However, Fisher’s writing is at time so tangled that this might not be worth every investor’s time to read. He excessively uses the passive voice and uses more words than necessary to make a point. Warren Buffett highly recommends this book, but I suggest reading Buffett’s shareholder letters instead. You will get most of Philip Fisher’s wisdom (and then some) in the form of clear, concise maxims and metaphors. Buffett has made a lot more money than Fisher ever did, so one could argue that he gives Fisher's wisdom an upgrade in both grammar and content.
1. My satirical review:
The passive voice is most affectionately loved by Philip A. Fisher. It is believed by him that the passive voice should be used as frequently as possible so that clarity can be added. If it is not used frequently enough, then the book might not be understood. That which is said by Fisher in this book could not be more clearly stated by anyone than as it is said by him. This book should be bought by everyone so that the correct stocks can be held by them for the correct amounts of time so that losses are minimally experienced.
2. My actual review:
Fisher outlines excellent principles for investing, especially qualitative concepts like the “Scuttlebutt” method. His “fifteen points” for evaluating a company are highly useful to investors across the value and growth style spectrum. His "5 Don'ts for Investors" and "5 More Don'ts for Investors" are great lists as well.
However, Fisher’s writing is at time so tangled that this might not be worth every investor’s time to read. He excessively uses the passive voice and uses more words than necessary to make a point. Warren Buffett highly recommends this book, but I suggest reading Buffett’s shareholder letters instead. You will get most of Philip Fisher’s wisdom (and then some) in the form of clear, concise maxims and metaphors. Buffett has made a lot more money than Fisher ever did, so one could argue that he gives Fisher's wisdom an upgrade in both grammar and content.
July 7, 2021
I learned from that book two things:
1. How to evaluate if a firm is a good fit? AND
2. How to invest wisely in firms.
It is a detective job to figure those to questions out but it helps to understand, evaluate and (maybe) invest in the firm.
#blinkist
1. How to evaluate if a firm is a good fit? AND
2. How to invest wisely in firms.
It is a detective job to figure those to questions out but it helps to understand, evaluate and (maybe) invest in the firm.
#blinkist
March 4, 2020
Với một người mới tìm hiểu về đầu tư thì quyển sách này cũng có rất nhiều vấn đề và kinh nghiệm để học hỏi.
Tác giả của Cổ phiếu thường, lợi nhuận phi thường là một nhà đầu tư theo trường phái đầu tư tăng trưởng và là 1 trong 2 người thầy quan trọng của Warren Buffett. Quyển sách này đã cung cấp một số điều có giá trị với mình:
-Phương pháp kiếm thông tin về doanh nghiệp hiệu quả và chính xác nhất: đi hỏi đối thủ và khách hàng của doanh nghiệp
- 15 tiêu chí cần xem xét đến khi đầu tư một doanh nghiệp, công ty:
1/Liệu công ty có những sản phẩm và dịch vụ có đủ tiềm năng, thị trường đủ lớn để tăng doanh thu ít nhất là trong vài năm tới không?
2/ Bộ máy quản lý của công ty có quyết tâm phát triển các dòng sản phẩm hay quy trình sản xuất, nhằm gia tăng hơn nữa tổng doanh thu trong khi tiềm năng tăng trưởng của các dòng sản phẩm hấp dẫn hiện tại đã bị khai thác quá nhiều
3/ Những nỗ lực nghiên cứu và phát triển của công ty sẽ ảnh hưởng như thế nào đến quy mô của nó? (dùng cho công ty thiên về nghiên cứu)
4/ Cách thức tổ chức bán hàng của công ty đã hiệu quả chưa?
5/ Biên lợi nhuận của công ty có cao không?
6/ Công ty đang làm gì để duy trì hoặc cải thiện biên lợi nhuận?
7/ Mối quan hệ giữa bộ máy lãnh đạo và người lao động trong công ty tốt không?
8/ Đội ngũ lãnh đạo công ty có đoàn kết, đồng thuận cao không?
9/ Công ty có thật sự có chiều sâu quản lý không?
10/ Công ty có kiểm soát tốt hệ thống kết oán và phân tích chi phí không?
11/ Công ty có chú ý đến những khía cạnh kinh doanh khác biệt với tính chất của ngành - khía cạnh mang lại cho nhà đầu tư đầu mối về mức độ nổi trội của công ty so với đối thủ cạnh tranh?
12/ Công ty có triển vọng lợi nhuận ngắn hạn và dài hạn như thế nào?
13/ Trong tương lai, nếu công ty có dự tính tăng trưởng dựa trên việc tăng vốn cổ phần bằng cách phát hành thêm cổ phiếu, thì lợi ích của các cổ đông hiện tại có giảm sút không?
14/ Bộ máy quản lý công ty có luôn minh bạch với các nhà đầu tư về tình hình công ty khi nó hoạt động tốt nhưng lại che giấu khi có vấn đề?
15/ Bộ máy quản lý công ty có liêm khiết không?
Trong số đó có nhiều tiêu chí liên quan đến ban quản lý, đến việc tìm hiểu về chính sách, về kế hoạch phát triểu dài hạn, tìm hiểu về triển vọng ngành. Một số tiêu chí là khá khó thực hiện với nhà đầu tư cá nhân, nhưng cũng vẫn cần phải biết để đầu tư hiệu quả nhất, và với nỗ lực nhất định thì nhà đầu tư cá nhân vẫn đánh giá được các tiêu chí này
- 10 điều nhà đầu tư cần tránh
+ Không nên mua cổ phiếu công ty đang trong quá trình hình thành và phát triển
+ Không nên bỏ qua cổ phiếu tốt chỉ vì chưa được niêm yết chính thức trên sàn (cổ phiếu OTC), ví dụ như Thaco,OCB,..
+ Không nên mua cổ phiếu chỉ vì bạn thích báo cáo thường niên của nó, mà phải tìm hiểu s + ự thật thông qua bctn và các báo cáo tài chính khác. Hãy nhớ chúng chỉ là công cụ của bạn
+ Không nên lo lắng khi P/E quá cao, nó có thể là dấu hiệu cơ bản rằng mức tăng cao hơn của khoản thu nhập trong tương lai phần lớn đã được phản ánh ở mức giá hiện tại, nhưng còn tùy trường hợp :D
+ Không nên quá kì kèo bước giá nhỏ (không nên quá keo), vì nhiều khi cổ phiếu tăng lên và bạn lỡ tàu
+ Không nên đa dạng hóa quá mức danh mục đầu tư; một số hướng dẫn: A.tối thiểu 5 loại cổ tăng trưởng, mỗi loại không quá 20%, 5 công ty này nên thuộc lĩnh vực khác nhau, B. với công ty còn trẻ, độ rủi ro cao, phân bố mỗi cổ 10% thay vì 20%, C. cuối cùng là các công ty nhỏ, low-cap, rũi ro rất cao, không nên quá 5% vốn vào một trong những công ty như vậy trong lần đầu tư đầu tiên
+ Đừng e ngại mua cổ phiếu vì chiến tranh (hic cái này chắc mình không dám làm theo, mình sẽ đổi ra 40% vàng và 45% tiền mặt, 15% giữ lại)
+ Không nên sa vào những vấn đề không thực sự quan trọng: giá trong quá khứ; chúng chỉ là công cụ hỗ trợ
+ Đừng quên xem xét thời điểm cũng như giá khi mua một cổ phiếu tăng trưởng thật sự: mua cổ phiếu không phải tại một mức giá xác định mà tại một thời điểm xác định trong quá trình phát triển của công ty
+ Đừng chạy theo đám đông
- Tổng quan cách tìm ra cổ phiếu tăng trưởng (trang 252)
- Thời điểm mua vào bán ra cổ phiếu tăng trưởng
Tác giả của Cổ phiếu thường, lợi nhuận phi thường là một nhà đầu tư theo trường phái đầu tư tăng trưởng và là 1 trong 2 người thầy quan trọng của Warren Buffett. Quyển sách này đã cung cấp một số điều có giá trị với mình:
-Phương pháp kiếm thông tin về doanh nghiệp hiệu quả và chính xác nhất: đi hỏi đối thủ và khách hàng của doanh nghiệp
- 15 tiêu chí cần xem xét đến khi đầu tư một doanh nghiệp, công ty:
1/Liệu công ty có những sản phẩm và dịch vụ có đủ tiềm năng, thị trường đủ lớn để tăng doanh thu ít nhất là trong vài năm tới không?
2/ Bộ máy quản lý của công ty có quyết tâm phát triển các dòng sản phẩm hay quy trình sản xuất, nhằm gia tăng hơn nữa tổng doanh thu trong khi tiềm năng tăng trưởng của các dòng sản phẩm hấp dẫn hiện tại đã bị khai thác quá nhiều
3/ Những nỗ lực nghiên cứu và phát triển của công ty sẽ ảnh hưởng như thế nào đến quy mô của nó? (dùng cho công ty thiên về nghiên cứu)
4/ Cách thức tổ chức bán hàng của công ty đã hiệu quả chưa?
5/ Biên lợi nhuận của công ty có cao không?
6/ Công ty đang làm gì để duy trì hoặc cải thiện biên lợi nhuận?
7/ Mối quan hệ giữa bộ máy lãnh đạo và người lao động trong công ty tốt không?
8/ Đội ngũ lãnh đạo công ty có đoàn kết, đồng thuận cao không?
9/ Công ty có thật sự có chiều sâu quản lý không?
10/ Công ty có kiểm soát tốt hệ thống kết oán và phân tích chi phí không?
11/ Công ty có chú ý đến những khía cạnh kinh doanh khác biệt với tính chất của ngành - khía cạnh mang lại cho nhà đầu tư đầu mối về mức độ nổi trội của công ty so với đối thủ cạnh tranh?
12/ Công ty có triển vọng lợi nhuận ngắn hạn và dài hạn như thế nào?
13/ Trong tương lai, nếu công ty có dự tính tăng trưởng dựa trên việc tăng vốn cổ phần bằng cách phát hành thêm cổ phiếu, thì lợi ích của các cổ đông hiện tại có giảm sút không?
14/ Bộ máy quản lý công ty có luôn minh bạch với các nhà đầu tư về tình hình công ty khi nó hoạt động tốt nhưng lại che giấu khi có vấn đề?
15/ Bộ máy quản lý công ty có liêm khiết không?
Trong số đó có nhiều tiêu chí liên quan đến ban quản lý, đến việc tìm hiểu về chính sách, về kế hoạch phát triểu dài hạn, tìm hiểu về triển vọng ngành. Một số tiêu chí là khá khó thực hiện với nhà đầu tư cá nhân, nhưng cũng vẫn cần phải biết để đầu tư hiệu quả nhất, và với nỗ lực nhất định thì nhà đầu tư cá nhân vẫn đánh giá được các tiêu chí này
- 10 điều nhà đầu tư cần tránh
+ Không nên mua cổ phiếu công ty đang trong quá trình hình thành và phát triển
+ Không nên bỏ qua cổ phiếu tốt chỉ vì chưa được niêm yết chính thức trên sàn (cổ phiếu OTC), ví dụ như Thaco,OCB,..
+ Không nên mua cổ phiếu chỉ vì bạn thích báo cáo thường niên của nó, mà phải tìm hiểu s + ự thật thông qua bctn và các báo cáo tài chính khác. Hãy nhớ chúng chỉ là công cụ của bạn
+ Không nên lo lắng khi P/E quá cao, nó có thể là dấu hiệu cơ bản rằng mức tăng cao hơn của khoản thu nhập trong tương lai phần lớn đã được phản ánh ở mức giá hiện tại, nhưng còn tùy trường hợp :D
+ Không nên quá kì kèo bước giá nhỏ (không nên quá keo), vì nhiều khi cổ phiếu tăng lên và bạn lỡ tàu
+ Không nên đa dạng hóa quá mức danh mục đầu tư; một số hướng dẫn: A.tối thiểu 5 loại cổ tăng trưởng, mỗi loại không quá 20%, 5 công ty này nên thuộc lĩnh vực khác nhau, B. với công ty còn trẻ, độ rủi ro cao, phân bố mỗi cổ 10% thay vì 20%, C. cuối cùng là các công ty nhỏ, low-cap, rũi ro rất cao, không nên quá 5% vốn vào một trong những công ty như vậy trong lần đầu tư đầu tiên
+ Đừng e ngại mua cổ phiếu vì chiến tranh (hic cái này chắc mình không dám làm theo, mình sẽ đổi ra 40% vàng và 45% tiền mặt, 15% giữ lại)
+ Không nên sa vào những vấn đề không thực sự quan trọng: giá trong quá khứ; chúng chỉ là công cụ hỗ trợ
+ Đừng quên xem xét thời điểm cũng như giá khi mua một cổ phiếu tăng trưởng thật sự: mua cổ phiếu không phải tại một mức giá xác định mà tại một thời điểm xác định trong quá trình phát triển của công ty
+ Đừng chạy theo đám đông
- Tổng quan cách tìm ra cổ phiếu tăng trưởng (trang 252)
- Thời điểm mua vào bán ra cổ phiếu tăng trưởng
January 2, 2021
It teaches you to invest beyond numbers .. Quality Investing.
February 9, 2020
فعالین بازار سرمایه که به تحلیل بنیادی علاقه دارند باید این کتاب را بخوانند. مطالبی که عنوان شده است تجربی است و اغلب افرادی که به صورت حرفه ای با استفاده از تحلیل بنیادی در بازار بورس فعالند احتمالا بعد دو سه سال به این نتایج برسند ولی تکرار و بخشیدن نظم به این نتایج با مطالعه ی این کتاب صورت می گیرد.
مطالعه ی این کتاب رو به کسانی که با تحلیل صورت های مالی آشنایی ندارند و به تمام بندهای موجود در صورت های مالی تسلط حداقلی ندارند توصیه نمی کنم و در کل مقدمه ی تعمق بخشیدن به توانایی تحلیل بنیادی را کار با صورت های مالی و اکسل می دانم پس اول چند کتاب تحلیل و تجزیه صورتهای مالی بخوانید و بارها توی اکسل باید شرکت های مختلف رو تحلیل کرده باشید تا درک بهتری از چنین کتاب هایی بکنید. اگر هم در مورد صورتهای مالی چیزی نمی دانید مطالعه ی این کتاب برایتان سخت نخواهد بود اما آن استفاده ای که بشود را از کتاب نمی برید.
ترجمه خوب بود.
مطالعه ی این کتاب رو به کسانی که با تحلیل صورت های مالی آشنایی ندارند و به تمام بندهای موجود در صورت های مالی تسلط حداقلی ندارند توصیه نمی کنم و در کل مقدمه ی تعمق بخشیدن به توانایی تحلیل بنیادی را کار با صورت های مالی و اکسل می دانم پس اول چند کتاب تحلیل و تجزیه صورتهای مالی بخوانید و بارها توی اکسل باید شرکت های مختلف رو تحلیل کرده باشید تا درک بهتری از چنین کتاب هایی بکنید. اگر هم در مورد صورتهای مالی چیزی نمی دانید مطالعه ی این کتاب برایتان سخت نخواهد بود اما آن استفاده ای که بشود را از کتاب نمی برید.
ترجمه خوب بود.
November 6, 2022
If Graham is the king of quantitative analysis, the same can be said about Fisher on qualitative analysis. Considering that this book was written in the 1950s, i am constantly taken aback by how relevant Fisher’s investment principles are in the context of today’s markets, this was a man who was well ahead of his time.
From the outset he makes a strong case for investing in equities instead of fixed income (the fact that inflation and taxation will likely eat up any kind of gains you hope to get from bonds). In the following chapters, he goes on to outline his now-famous fifteen point checklist/criteria for selecting potential investments - the importance of a competent and transparent management who are willing to own up to their mistakes, the market potential (what’s known as the total addressable market today), the constant research and development of products and services, how those in the sales department are trained, worthwhile profit margins and strong financial controls. The chapters on conservative investing, knowing when to sell your stocks, P/E analysis, self-discipline and patience, efficient market hypothesis, and the role of profit margins as a safety net are lessons that will remain with me for many years to come.
Though most people in the fundamental analysis camp would advise against trying to time the market, Fisher presents a contrarian view. He stresses that while the general macroeconomic trends of the market are hard to predict, there are times when a company is put in a temporary situation or bad publicity causes the price of a stock tumble when there are no fundamental changes in the underlying business. An investor who is able to to identify and take advantage of this temporary depression in market sentiment can stand to profit from this situation. Stock prices are a reflection of the financial community’s consensus appraisal of a company, and does not always converge with underlying fundamentals of the company.
Fisher also seems to be one of the first proponents of investing in growth back when the majority of the financial community was harping on value. He specialised, invested heavily, and profited from tech and I wish he was alive to see the tech giants today with Microsoft, Apple, Amazon and Google all having trillion-dollar market caps, he would’ve loved it.
I enjoyed this book more than i thought i would, i expected a dry book but Fisher manages to keep most of the book interesting. I honestly think that 90% of what need to know about markets and investing can be learned from Graham (The Intelligent Investor) and Fisher, everything else that you read after that is supplementary. I’ll end the review with my favourite quote from the book (which is actually a quote from Shakespeare) - There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune.
From the outset he makes a strong case for investing in equities instead of fixed income (the fact that inflation and taxation will likely eat up any kind of gains you hope to get from bonds). In the following chapters, he goes on to outline his now-famous fifteen point checklist/criteria for selecting potential investments - the importance of a competent and transparent management who are willing to own up to their mistakes, the market potential (what’s known as the total addressable market today), the constant research and development of products and services, how those in the sales department are trained, worthwhile profit margins and strong financial controls. The chapters on conservative investing, knowing when to sell your stocks, P/E analysis, self-discipline and patience, efficient market hypothesis, and the role of profit margins as a safety net are lessons that will remain with me for many years to come.
Though most people in the fundamental analysis camp would advise against trying to time the market, Fisher presents a contrarian view. He stresses that while the general macroeconomic trends of the market are hard to predict, there are times when a company is put in a temporary situation or bad publicity causes the price of a stock tumble when there are no fundamental changes in the underlying business. An investor who is able to to identify and take advantage of this temporary depression in market sentiment can stand to profit from this situation. Stock prices are a reflection of the financial community’s consensus appraisal of a company, and does not always converge with underlying fundamentals of the company.
Fisher also seems to be one of the first proponents of investing in growth back when the majority of the financial community was harping on value. He specialised, invested heavily, and profited from tech and I wish he was alive to see the tech giants today with Microsoft, Apple, Amazon and Google all having trillion-dollar market caps, he would’ve loved it.
I enjoyed this book more than i thought i would, i expected a dry book but Fisher manages to keep most of the book interesting. I honestly think that 90% of what need to know about markets and investing can be learned from Graham (The Intelligent Investor) and Fisher, everything else that you read after that is supplementary. I’ll end the review with my favourite quote from the book (which is actually a quote from Shakespeare) - There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune.
June 21, 2021
Incredible!! Old is Gold is a good way to describe this. This investment book is full of many new ideas that I had read earlier, but no one has explained them with the level of this author's simplicity. This book goes to my read again list.
I must mention that many of the topics are not relevant in the modern-day investment environment and will feel mundane. But whatever is relevant is very relevant.
I must mention that many of the topics are not relevant in the modern-day investment environment and will feel mundane. But whatever is relevant is very relevant.
August 22, 2018
Two things can be said about this book: One, it is a text which will still transform people many years from now. Two, everybody has eaten it, but very few have really tasted it. Warren Buffett has famously said that Chapter 8 of “The Intelligent Investor” completely turned his head around and that without reading it at a young age, nothing else would have been the same. Leaving all other similarities to the dust-bin, the same can be said for me upon reading the third chapter of Fisher ́s masterpiece many weekly price-fluctuations ago. At the risk of committing the equivalent of investing harikiri (Buffett has, after all, famously said “value and growth are joined at the hip”); the naming of Ben Graham and Philip Fisher as the Father of Value- and Growth Investing respectively, has one obvious advantage: It awards the appropriate weight and honour to the lasting impact of Mr Fisher ́s work.
The bulk of the book is devoted to Fisher ́s 15 points of investing. This checklist is more commonly known as Scuttlebuts and constitutes the core difference between Fisher and Graham. To buy truly outstanding businesses at not-mouth- watering multiples, you must possess a genuine conviction that it is a business with a long-lasting competitive edge. When Buffett says he is “85% Graham and 15% Fisher”, he is most definitely referring to the mental approach towards investing that Ben Graham stood for (Mr. Market, Margin- of-Safety etc) and the analytical approach towards finding great companies with a durable moat pioneered by Fisher. Buffett has an obvious linkage to Graham. But I have also been struck by the plentiful number of “Buffett wisdom nuggets” that originate from Common Stocks (“In the stock market, a good nervous system is even more important than a good head”).
Essentially, Scuttlebutt involves seeking out information about a business from all different kind of angles; talking to management, suppliers, customers and competitors, reading legal documents, industry publications etc. The main point is really spending time looking beyond the numbers to gain a better understanding of the business. After reading the book numerous times, I am always reminded of the depth and complexity of Fisher ́s thoughts. Despite that, it was actually the first ever investment book to make it onto The New York Times bestseller list. Hence, if there is ever a time to demand regular re-reads of a book, it is with this one. Because to me it does not matter how often you just scratch your head thinking “how on earth am I going to find the time or knowledge to gather whether a certain company has the right people in place at the R&D department? What matters to me personally, is striving for being approximately right about the “15 points” in order to understand better what separates the decent organization from the outstanding.
Common Stocks was written in 1958, about a decade after Graham ́s The Intelligent Investor. The publishing dates of these two books gives credence to the view that stock markets may change but true investing wisdom comes without a due date label. They are arguably the two greatest investment books ever written. Both men had experienced the years of the Great Depression and proposed detailed systems for investors to capture substantial returns while avoiding the pitfalls that can lead to “the only risk there is”: the permanent loss of capital.
As for the quality of the books, the timing of the publications with the reminiscence of The Great Depression fresh in their minds, is of no coincidence, I believe. Out of great despair come greater solutions. So with having narrowly escaped (?) our recent flirtation with Great Depression #2 in 2008-09, we grudgingly have to wait for the real deal to kick in next time around in order to stand a chance of reading the works of any contemporary thinkers worthy of following in the footsteps of Fisher and Graham.
The bulk of the book is devoted to Fisher ́s 15 points of investing. This checklist is more commonly known as Scuttlebuts and constitutes the core difference between Fisher and Graham. To buy truly outstanding businesses at not-mouth- watering multiples, you must possess a genuine conviction that it is a business with a long-lasting competitive edge. When Buffett says he is “85% Graham and 15% Fisher”, he is most definitely referring to the mental approach towards investing that Ben Graham stood for (Mr. Market, Margin- of-Safety etc) and the analytical approach towards finding great companies with a durable moat pioneered by Fisher. Buffett has an obvious linkage to Graham. But I have also been struck by the plentiful number of “Buffett wisdom nuggets” that originate from Common Stocks (“In the stock market, a good nervous system is even more important than a good head”).
Essentially, Scuttlebutt involves seeking out information about a business from all different kind of angles; talking to management, suppliers, customers and competitors, reading legal documents, industry publications etc. The main point is really spending time looking beyond the numbers to gain a better understanding of the business. After reading the book numerous times, I am always reminded of the depth and complexity of Fisher ́s thoughts. Despite that, it was actually the first ever investment book to make it onto The New York Times bestseller list. Hence, if there is ever a time to demand regular re-reads of a book, it is with this one. Because to me it does not matter how often you just scratch your head thinking “how on earth am I going to find the time or knowledge to gather whether a certain company has the right people in place at the R&D department? What matters to me personally, is striving for being approximately right about the “15 points” in order to understand better what separates the decent organization from the outstanding.
Common Stocks was written in 1958, about a decade after Graham ́s The Intelligent Investor. The publishing dates of these two books gives credence to the view that stock markets may change but true investing wisdom comes without a due date label. They are arguably the two greatest investment books ever written. Both men had experienced the years of the Great Depression and proposed detailed systems for investors to capture substantial returns while avoiding the pitfalls that can lead to “the only risk there is”: the permanent loss of capital.
As for the quality of the books, the timing of the publications with the reminiscence of The Great Depression fresh in their minds, is of no coincidence, I believe. Out of great despair come greater solutions. So with having narrowly escaped (?) our recent flirtation with Great Depression #2 in 2008-09, we grudgingly have to wait for the real deal to kick in next time around in order to stand a chance of reading the works of any contemporary thinkers worthy of following in the footsteps of Fisher and Graham.
January 9, 2014
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
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
July 22, 2013
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.
December 24, 2019
جمله ای از این کتاب که به شدت برام جالب بود، راجع به موضوعی که این روزها زیاد در گوش اهالی بازار سرمایه زمزمه میشه: "بسیاری از فعالان بازار به سهامی که هنوز بالا نرفته اعتقاد خاصی دارند. کسی که سهم فعلی خود را می فروشد تا از بین سهامی که هنوز بالا نرفته گزینه جدیدی را به سبد وارد کند، در حقیقت دارد اعلام می کند که همه سهام کم و بیش باید به یک اندازه رشد کنند. از منظر او سهامی که هنوز بالا نرفته ، یک رشد به بازار بدهکار است که باید آن را پرداخت کند. ولی این دیدگاه سرابی بیش نیست".
من مطمانم که دوباره بر میگردم و این کتاب رو می خونم.
من مطمانم که دوباره بر میگردم و این کتاب رو می خونم.
February 24, 2011
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.
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.
December 15, 2014
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.
Must-read for any investor.
June 16, 2015
Dated, not worth reading. I'm sure it was groundbreaking when it was first written, but pretty mundane by any standard today.
June 12, 2021
One of the better books out there for laypersons to read on stock picking.
February 20, 2021
Alustasin selle raamatu lugemist teatud skepsisega, sest nägin, et suurem osa sellest on autor kirjutanud 1950ndate lõpus ja viimase osa 1970ndatel. Arvasin, et maailm on sellest ajast nii palju muutunud, et pole ometi võimalik siit mingeid rakendatavaid ideid leida. Ja oi kuidas ma eksisin!
Täiesti hämmastav, kui hästi kõik siin kirjutatu ka tänapäeval toimib. Lisaks oli mul pidevalt tunne, et loen iseenda mõtteid, sest olles palju aastaid olnud ettevõtluses, on ka minul välja kujunenud kindlad põhimõtted ettevõtte edukast juhtimisest. See raamat sobibki lugeda ka kõigil neil, kes küll investeerimisega ei tegele, aga osalevad mõne ettevõtte juhtimises. Väga palju universaalseid mõtteid, mis on ajahambale vastu pidanud ja peavad kindlasti veel ka edaspidi.
Ainuke, mida ma investorina siit üle võtta ei saaks, on ettevõtetes kohalkäimine enne investeerimisotsuse tegemist. Esiteks on Tallinna börs nii väike, et sealolevatest ettevõtetest teame niigi päris palju juba meedia vahendusel. Teiseks ei oleks kuidagi mõeldav sõita üle suure lombi, et sealsete ettevõtetega tutvuda ja alles seejärel otsustada, kuhu tasuks investeerida. Samas selle probleemi lahendab ka välisaktsiate puhul internet suures osas ära.
Lihtsas ja selges keeles kirjutatud raamat, mille eest tuleb ilmselt tänu öelda ka tõlgile.
Täiesti hämmastav, kui hästi kõik siin kirjutatu ka tänapäeval toimib. Lisaks oli mul pidevalt tunne, et loen iseenda mõtteid, sest olles palju aastaid olnud ettevõtluses, on ka minul välja kujunenud kindlad põhimõtted ettevõtte edukast juhtimisest. See raamat sobibki lugeda ka kõigil neil, kes küll investeerimisega ei tegele, aga osalevad mõne ettevõtte juhtimises. Väga palju universaalseid mõtteid, mis on ajahambale vastu pidanud ja peavad kindlasti veel ka edaspidi.
Ainuke, mida ma investorina siit üle võtta ei saaks, on ettevõtetes kohalkäimine enne investeerimisotsuse tegemist. Esiteks on Tallinna börs nii väike, et sealolevatest ettevõtetest teame niigi päris palju juba meedia vahendusel. Teiseks ei oleks kuidagi mõeldav sõita üle suure lombi, et sealsete ettevõtetega tutvuda ja alles seejärel otsustada, kuhu tasuks investeerida. Samas selle probleemi lahendab ka välisaktsiate puhul internet suures osas ära.
Lihtsas ja selges keeles kirjutatud raamat, mille eest tuleb ilmselt tänu öelda ka tõlgile.
April 29, 2022
Esta es una buena lectura para todos aquellos que nos consideramos amateurs en el mundo de las inversiones.
Es muy interesante pensar que este libro fue escrito en los 60s y aún más sugerente que la filosofía detrás se forjó décadas antes. Muchas de estas ideas están ya asimiladas y digeridas por los inversores GARP.
Sin duda la parte más relevante se encuentra en el capítulo 3, donde plasma los 15 puntos a tener en cuenta a la hora de invertir en una empresa, lo que el autor denomina:la rumorologia.
Para mí, la introducción y las conclusiones fueron un tanto emotivas, al adentrarnos en la persona del autor y el contexto donde se desenvolvió; considero que le agrega un dote de humanidad a un tópico que se percibe como frío y sin emociones, con bastante regularidad.
Es muy interesante pensar que este libro fue escrito en los 60s y aún más sugerente que la filosofía detrás se forjó décadas antes. Muchas de estas ideas están ya asimiladas y digeridas por los inversores GARP.
Sin duda la parte más relevante se encuentra en el capítulo 3, donde plasma los 15 puntos a tener en cuenta a la hora de invertir en una empresa, lo que el autor denomina:la rumorologia.
Para mí, la introducción y las conclusiones fueron un tanto emotivas, al adentrarnos en la persona del autor y el contexto donde se desenvolvió; considero que le agrega un dote de humanidad a un tópico que se percibe como frío y sin emociones, con bastante regularidad.
December 10, 2021
Philip A. Fisher its a reference in long range and conservative investment. If you would like to start investing in stocks, this is a must book. Fisher gives the principles and what to expect from outstanding companies you should buy. The writing and message are very simple and its principles apply not only for stock, but for every project of your life. I think this book is not only for investor, but for anyone who will invest time and effort in any project.
August 3, 2023
کتاب سهام عادی با سود غیر عادی، به توضیح استراتژیهای موفق در خصوص سرمایه گذاری و خرید سهام میپردازد.
فیلیپ فیشر نویسنده کتاب سهام عادی با سود غیر عادی معتقد است که اگر سرمایهگذاران پتانسیل رشد یک شرکت را بهخوبی ارزیابی کنند، وقت فروش سهام تقریبا «هیچ وقت» است! در کتاب سهام عادی با سود غیر عادی خواهید آموخت که باید به پتانسیل رشد طولانی مدت سهامتان فکر کرده و تنها در شرایطی خاص اجازه خواهید داشت که سهامتان را بفروشید.
فیلیپ فیشر نویسنده کتاب سهام عادی با سود غیر عادی معتقد است که اگر سرمایهگذاران پتانسیل رشد یک شرکت را بهخوبی ارزیابی کنند، وقت فروش سهام تقریبا «هیچ وقت» است! در کتاب سهام عادی با سود غیر عادی خواهید آموخت که باید به پتانسیل رشد طولانی مدت سهامتان فکر کرده و تنها در شرایطی خاص اجازه خواهید داشت که سهامتان را بفروشید.
November 16, 2023
Interesting book about investing with fundamental analysis. I listened to this book while commuting to work and found it a little difficult to absorb all the details. However, I've found it amusing to listen to and would like to read it again thoroughly. I think if you're new to investing and fundamental analysis, this might be a little confusing but might be helpful to those familiar with stocks and markets.
January 7, 2020
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
April 13, 2021
The foreword was far too long and large parts of the book was difficult to get through. Gets a 3 anyway because of chapter 3 which is the gem of the book at makes it worth the read. The 15 points are great.
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