philip fisher common stocks uncommon profits

He approaches investments in the same way insurance companies approach risk, identifying key qualities. Phil sets out a 15-point plan allowing the average investor to identify companies that can increase several hundred percent. This information is critical to understand a business in detail and is widely used by professional investors. Using mosaic theory, a detailed assessment of the company is exposed. Generally, these contacts are prepared to tell you a lot more if they know they will not be quoted in the media. Competitors’ may be able to identify changes to the industry structure before it happens. For example, employees may be able to identify key products or services before they are commercialised. Phil notes the amazing picture one can build by speaking with these contacts. Scuttlebutt involves speaking with employees, competitors, management, and trade association executives etc. Scuttlebutt is the process by which information about a company is unearthed. Phil Fisher is no different and he begins his analysis with a technique he calls “scuttlebutt”. If you have read the first two book reviews, you would notice a common pattern emerging. Phil Fisher’s investments however, enjoy an increase in their intrinsic value over time as the company matures with new product lines and new markets. Ben Graham’s investments tend to benefit from a one-time profit. The primary difference between the two philosophies is clear. If Ben Graham is the father of value investing, Phil Fisher is the father of growth investing. Warren Buffett once described himself as being 85% Ben Graham and 15% Phil Fisher.

Philip fisher common stocks uncommon profits