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Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics) Paperback – June 7, 1996
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Top Customer Reviews
Phillip Fisher searches for "growth stocks", companies with superlative management (superior sales force, superior research and development, clear focus on the business) and he holds their stocks FOREVER.
You can read this book and find not a single substantive mention of balance sheets, solvency, current ratios or any of the other things that most seasoned stock pickers rely on. Instead you find tips for analysing the scuttlebutt that you hear about a company and for testing whether management cuts the mustard. Thirteen or so of the "Fifteen Points" in the second chapter are worth the purchase price of the book and more.
These points summarise as:
* The management are technical geniuses.
* The management know how to milk the existing business, and
* The management resist the institutional imperative.
Unlike Phillip Fisher however, I am not sure the management need to be technical geniuses. Indeed Phillip Fisher's notion of what constitutes a growth stock is quite narrow. He is almost obsessive about research and development. New products are to him the major determinant of growth. He would never have picked Coca-Cola or McDonalds as growth stocks because their product is not technically innovative. Yet a reader of Phillip Fisher may have picked these stocks. They pass the bulk of Fisher's fifteen points with flying colours. Just making hamburgers is not making Silicon chips.Read more ›
acknowledged as one of Warren Buffet's intellectual
fathers and it shows. However - like many books on Buffett -
Fisher's approach relies on the ability of the individual
to spend large amounts of time researching companies and
stocks. While this minimizes the risk of investing badly,
it also assumes that picking stocks is your life.
I recommend that anyone interested in investing read this
text as an example of how to think about companies in which
to invest. However, be prepared that it won't be as directly
usuable as, say, the writings of Peter Lynch.
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.
It is telling that the man who combines the investment philosophies of both Graham and Fisher is widely acclaimed as the most brilliant investor alive today, Warren Buffet.
This is a book that you shouldn't just read once. It's a book you should read again and again. This is a book that you should read in cycles. Once you finish, you should read it again. It's short enough that you can read a chapter each night. This is a book that you should read until you can recite it word for word.
If you understand the principles in this book, and adhere stringently to Fisher's 15-point checklist for buying stocks, avoid his 10 don'ts, and purchase stocks at the right time, as he suggested how to do, you will almost certainly be investing in good companies.
If you then apply Graham's tests of value, you can avoid paying too much for those good companies. It is possible to have a good company but a bad stock (IBM is a great company today, and passes all of Fisher's criteria, but could you really justify buying it say $1,000 per share?).
When you do find companies that are good companies, but have bad stocks, keep an eye on them. What I mean by "bad stock" is that the stock -- in your opinion -- is priced too highly, even considering the company's excellent growth prospects (in other words, there is euphoria about it on Wallstreet that goes beyond reason). Eventually, the market will realize that, even for that great company, it was paying too much.Read more ›
Most Recent Customer Reviews
The ink on some pages gets really thin, but the material within the book is wonderful!Published 22 months ago by Jeremy
One of the must haves for anyone interested in financePublished on August 18, 2014 by Tanner Boyette
Great book and excellent delivery time. I would recommend this book to any business professional. This book can be read by a new investor or a professional investor.Published on March 8, 2014 by Joshua Haun
This book is based on the assumption that nothing risked, nothing gained. In a world full of books that keep shouting themselves hoarse "Be safe, buy safe", this book... Read morePublished on February 16, 2014 by Bharat
some insight about what is predictable and unpredictable
sometimes too many words about a issue. Read more
Very common sense based book. It is short and to the point. I felt this book is worth its price.Published on June 13, 2013 by Aditya Kumar Pandey