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Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics) Paperback – June 7, 1996
| Philip A. Fisher (Author) Find all the books, read about the author, and more. See search results for this author |
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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 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
- Print length288 pages
- LanguageEnglish
- PublisherWiley
- Publication dateJune 7, 1996
- Dimensions5.43 x 0.76 x 8.58 inches
- ISBN-10047111927X
- ISBN-13978-0471119272
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Fisher's investment philosophy, the way I understood it, boils down to the following: Common stocks of good companies are worth buying at any price. Just find a good business with excellent growth prospects and buy the stock. The price will take care of itself.
This is the kind of approach that inflated the stocks of the so called nifty fifty in the early 1970s. Since Fisher's book was already a best seller by that time, I suspect that he was partially responsible for what has happened to the stocks of the nifty fifty.
Now, maybe I didn't quite get it. Maybe Fisher didn't really mean that a good business can justify any stock price, no matter how high. Then again, I read the book twice and if I couldn't get it then he didn't make it obvious enough. Only in the last part of the book (Conservative Investors Sleep Well) he suggests that value does matter. Unfortunately for many early readers, that part of the book was not written and added until long after the nifty fifty burst.
His approach toward finding future stars is not likely to work unless you do it during a bull market. Then again, almost any other investment strategy will make money in a bull market, even technical analysis. New technology developments and the state of future competition are too difficult to predict by any method. One of the few stars he ever found out was Motorola. It was a lucky shot because when he first found out the company, it was manufacturing TVs, not cell phones and pagers. Ironically, the company was soon kicked out of the television sets business for which Fisher chose them.
I don't know why Warren Buffet ever said that he liked Fisher's investment philosophy. I don't thing he is scuttlebutting for the future Intels and Microsofts.
Last but not least, the book is very poorly written. Fisher has absolutely no talent for a writer. His writing style is tortures for the reader. His editor probably gave up editing after the first few pages, crossed his fingers and sent the book to the printing press. Editing the book would have been equal to rewriting it. I don't think any editor would've had the patience and the time to do it.
To be fair, I like some aspects of Fisher's investment philosophy. He advocates long term commitment to strong businesses with good potentials. And, he wouldn't commit unless he had done a thorough investigation of the company. There are some other gems in the book such as his discussion of stock purchase timing but the reader has to dig them out from a pile of trivia. Three stars are well deserved.
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.
Amir Avitzur
Author of "Why do we sell low and buy high? The guide you must read BEFORE you invest"
Fisher explains the qualitative side to value investing, just as Graham explains the quantitative side. You really need both. If you follow Graham's advice insensitively, then you will find stocks which are selling cheap--because the company is truly in trouble. That's where Fisher comes in: you should examine low-priced companies from Fisher's perspective to find the ones which truly are bargains.
... Online discussions are no substitute for firsthand discussion with employees, competitors, etc. You simply can't meet enough people online; some companies' employees aren't even on the Internet. ... you will end up investing only in tech stocks--which I would consider extremely short-sighted.
On the other hand, online discussion is considerably better than nothing. Don't neglect the information you can find online! This source of information will become increasingly important over time.
A must buy for value investors, to understand the flip side of the coin.
Top reviews from other countries
This is extremely disappointing...
Phil Fisher's Common Stock and Uncommon Profit is a legendary book... To have pages missing in this book is a sacrilege...
And the most painful part is that the pages which are missing are the "what scuttlebutt can do" and "what to buy: the fifteen points"...
I started reading this book now well past the return cycle... Hence can't return / ask for refund either...
My advice to all buyers - please check through all the pages immediately after receiving a book from Amazon...
Reviewed in India on June 2, 2019
This is extremely disappointing...
Phil Fisher's Common Stock and Uncommon Profit is a legendary book... To have pages missing in this book is a sacrilege...
And the most painful part is that the pages which are missing are the "what scuttlebutt can do" and "what to buy: the fifteen points"...
I started reading this book now well past the return cycle... Hence can't return / ask for refund either...
My advice to all buyers - please check through all the pages immediately after receiving a book from Amazon...
Requesting Indian publishers charge more but give quality.
Those days gone now "chalta hai"





