Philip Fisher

Common Stocks and Uncommon Profits

1. IDEA 1

   Gather information through scuttlebutt

   Fisher describes the scuttlebutt method, learning about a company by talking to customers, suppliers, competitors and former employees. This gossip, carefully collected, can reveal more than official reports. Legwork beats rumours.

2. IDEA 2

   Look for long-term growth potential

   Fisher argues that the best investments are companies with products or markets that can grow sales for many years. He favours businesses that keep developing new products as old ones mature.

3. IDEA 3

   Fifteen points guide the search

   Fisher sets out fifteen questions to judge a company, covering sales growth, profit margins, research, management and labour relations. Few companies pass every test, but the list sharpens judgement. It remains widely studied.

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