Invest in companies with high growth potential. Does the company have a management of unquestionable integrity? Lessons Learnedįisher summarized eight crucial lessons learned from his five decades of investing experience.ġ. Does the management talk freely to investors about its affairs when things are going well but 'clam up' when troubles and disappointments occur?ġ5. 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?ġ4. Does the company have a short-range or long-range outlook in regard to profits?ġ3. Are there other aspects of the business, somewhat 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?ġ2. How good are the company's cost analysis and accounting controls?ġ1. Does the company have depth to its management?ġ0. Does the company have outstanding executive relations?ĩ. Does the company have outstanding labor and personnel relations?Ĩ. What is the company doing to maintain or improve profit margins?ħ. Does the company have a worthwhile profit margin?Ħ. Does the company have an above-average sales organization?ĥ. How effective are the company's research and development efforts in relation to its size?Ĥ. 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?ģ.

Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?Ģ. This investing technique details 15 points about which investors should be concerned.(Fisher’s 15-point checklist to select quality stocks that can deliver big,Dec 12,2020)ġ. (WARREN BUFFETT: HOW PHIL FISHER’S SCUTTLEBUTT METHOD SHOULD BE USED, August 21,2020) To help investors research potential investments in his book Paths to Wealth Through Common stocks, Fisher put forward a technique described as 'Scuttlebutt' when analyzing Corning Glass Works, a glass producer and one of his most well-known investments. As a champion of long-term investing, Fisher objected to short-term trades and recommended promising growth stocks selected based on the business 'grapevine' analysis, which evaluates a company's business prospect, profitability, and management level. He was the first to evaluate a stock's worth based on its potential growth and emphasized the analysis of the underlying company's intrinsic value.

Today we'll walk you through the stories and investing philosophy of Philip Fisher, another influential figure and a pioneer of growth investing. In the previous lesson, we've introduced Benjamin Graham, the renowned investing guru of value investing. Corning Glass Works, Texas Instrument, and Motorola are Fisher's highlighted investments.Fisher created a '15-Point Strategy' in his book Paths to Wealth Through Common Stocks to assess companies.Philip Fisher championed growth stocks that generated high returns with high risks.

Scuttlebutt stocks