Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics)

Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics)

Posted by jack_miller | Published 7 months ago

With 372 ratings

By: Philip A. Fisher and Kenneth L. Fisher

Purchased At: $20.99

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 financiers and investors, but are also regarded by many as gospel. This book is invaluable reading and has been since it was first published in 1958. The updated paperback retains the investment wisdom of the original edition and includes the perspectives of the author's son Ken Fisher, an investment guru in his own right in an expanded preface and introduction

"I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits...A thorough understanding of the business, obtained by using Phil's techniques...enables one to make intelligent investment commitments."
Warren Buffet

Everything starting from 30th page is awesome. For some unknown reason, first 30 pages are uselsess trashtalk, mind garbage river of someone who was allowed to have some money from ingenous father's / friends writings.
Basically, in this book are about 250 pages.

The book worths every penny. The parasites who wrote "preface" and "introduction" are not.

- huxley_hughes

If you are looking for an easy to read, fast-paced, bulleted, full of magic formulas, and a quick way to make a fortune book, please look elsewhere. If you are new to investing or even a seasoned investor who feels that you really don't have a grasp of the overall investing scheme, and if you are willing to plow through a lot of reading to extract some basic principles of investment analysis, then reading this book could be well worth your money and time. In his own roundabout way, the author will lay out for you concepts and answers to questions that you may not have considered relevant.

Notwithstanding the hype evidenced on the book covers and the introduction by the author's son, a highly-regarded and well-known investment manager, the author has credentials that money cannot buy. That would be fifty years of being a successful , professional, private investment manager. In this book, he will bring that experience into play as well focusing on factors that are not covered by the mainstream financial media, or as he refers to them as "the financial community. "

Here are some basic concepts that that the author will cover in his treatise: He will differentiate between a stock trader and stock investor; He will analyze what to buy and when to buy it; He will explain the movement of stocks in general or of a particular stock; He will argue the merits whether to follow the herd or to do otherwise; He will advise you whether to concentrate on intrinsic or extrinsic factors in evaluating a firm's stock; He will give you his opinion of the value of reading reports of the financial community.

Here are three key questions that he will pose and answer: Should you buy cheap or otherwise? How long should you hold on to hold a stock? When should a stock be sold? The author will provide you with his views on the value of historical prices and earnings. He will correlate stock prices with interest rates. The closest the author will come to using numbers is when he lists his fifteen points of what to look for in buying a common stock. And after listing those points, he will highlight that one point that will override the other fourteen points in not buying the stock. In fact, that one point could very well summarize the book in a single word.

As a reader, you will not get buried in a landslide of financial trivia but will learn general techniques and trends of investment analysis that often aren't considered by the statistically-oriented investors. However, in order to glean these gems of intrinisic stock information, you will have to have to forgo charts, illustrations, tables, and financial data commonly presented in stock analysis.

- esmeralda_richardson

Allowing you to take better control of your long term investments with some fantastic insights that most people look over when they consider investing in companies. Provides and expands on the idea of not following the crowd, a central tenet of value investing.

Fisher also addresses what a good business should have. I have 10 years of investing experience before I read this book. In my opinion this book should work as a guideline to develop our own investing philosophies (and not our philosophy itself). There are no one size fits all strategy in the investing world the magic frmula works for Buffett but he is one in a million. This book drives home the point - especially for the novice - that investing (rather than speculating) is not easy and is a complex process. Being emotionless and keeping disciplined with one's approach can allow for gains and success as a disciplined investor.

- santos_brooks

Book's preface is a short biography of the Author written by his son - Kenneth L. Fisher. It's definitely worth reading as it properly sets the mood for the book.

The book itself is quite old, so some circumstances considered by Mr. Fisher may be obsolete (cold war), but I'd say that most of the content is quite timeless. Especially Mr. Fisher's recipe for a good analysis of long-term growth investment opportunity (the process is referred to as scuttlebutt).

As for contents of the book, I see 3 distinct areas:
1. Very detailed description of scuttlebutt method (the most valuable part, in my opinion),
2. Mr. Fisher's insights when considering particular circumstances connected with investing,
3. The last chapter is a step-by-step guide on how to be Mr. Fisher (or work like him at least).

Mr. Fisher's style is quite formal but restrained in the wording. For me, it was a perfect read.

- hazel_nelson

Originally written in 1957 and then re-released in 2003. The author writes from the standpoint of a stock picker who had to navigate the investment world without the benefit all the information that is available to investors today.

The chapter on dividends was interesting to read, I'll re-read it. Also the chapter on when to sell.

- franklin_flores

An investment classic with a decidedly qualitative bent. If you've read Ben Graham's Security Analysis and thought that the numbers based approach was too narrow, then you will appreciate this text.

- madilyn_nguyen

Must read! This book explains the investment philosophy of how Fisher finds growth stocks that lead to massive gains if held forever! It also includes his other writings such as Conservative Investors Sleep Well. I won't go into too much detail as to spoil the book but this is a great read for any investor.

- mae_turner

Those who are familiar with growth investing are likely well-versed in Philip A. Fisher. This volume serves as his most well-known work that details his investment mandate and criteria for selecting and timing investments, among other material. If you are looking to develop a growth strategy or want to compare and contrast vs. value oriented investing you would do well to read this book.

- brentley_hernandez

This is a pathetic way to sell old father writing with new cover and introduction story. The writer just keep hitting his success without any concrete advises. The fifteen points are good ones but world have moved a long way, in short this book is not worth reading ( older version is still better than this new introduction )

- collins_davis

this book is the value investing version 2.0, being the first version the security analysis of ben graham which lays the foundations for the analysis of financial statements and the bargain hunting process. This book is different it gives the user tools to evaluate the company prospects from management, product and context overview, which many times is in fact much more important that the strict financials

- keagan_kelly

Absolutely for anyone interested in stocks investing. With "the Intelligent investor" from Benjamin Graham. These two books are a must to invest and receive really reasonable results with minimizing the risk. First one is a bible about qualitative analysis the second is a bible about the psychology of the stock market and its effect on us. Plus a qualitative​ analysis of the stocks and companies.

- jessa_ward

warren buffett recommends this book - so it must have some value. it's easy to see how. its an amazing introduction to fundamental analysis. if you are trying to research in to how one should invest their money then this is the greatest places to start. you will definetely get inspiration on how to find great equities to invest your hard earned cash. i have no issues with awarding this book a full 6 stars out of 5...

- brecken_wilson

Warren Buffet recommends this book and it is very well recommended.
Very well explained and full of nuggets of wisdom.

- manuel_kelly

I have always wondered, as to why does Warren buffet buy certain stocks, while avoiding equally good others ? If you read this book you will know for sure. Recommended by Buffet himself this book is one of the classics, as you already probably know. Although it is dated in some sense, however the core message remains quite relevant even in today's time, as much it did perhaps 70 years ago, when the book was originally written.

Philips Fisher introduces the reader with the "Scuttlebutt" approach to stock picking, quite early on in the book. As you move further he buttress his views with data and practical example. He begins by saying that the best time to sell a stock is "never" which he practiced himself when he held the stocks of Motorola, Texas Instrument and Raychem for the entirety fo his life, although his son in the preface admits that by the end of his fathers career, he had become recalcitrant to the new stock while solely focusing on the above mentioned three top stocks.

The book can be surmised by the following philosophies :
1. Growth companies : The company should be in a growth sector meaning it sales should grow to perpetuity.
2. New Growth : The company should be able to find new avenues of growth if the current lines dry up, either through Research and Development or through inorganic acquisitions.
3. Moat : There should be sufficient barriers to entry in the product line up to prevent other players from entering the same market and usurping the incumbent player (think IPhone).

Apart from these key message he also belabours upon the "Scuttlebutt" approach most of which I found to be quite irrelevant for retail investors, because this approach requires deep understanding of the company, its management, its customers, its debtors et al. He advices the investor to speak to the management, employees and customer and get a good sense of the culture and challenges. Also there is a focus on labour/unions. Although the book is written in a different time and most of the companies discussed perhaps don't even exist today, I still found this book to be quite refreshing to read.

It is a great book foe novice and Professionals alike. It is a must have in your library. It reinforces the philosophy of "value investing" in the fast paced world of "automated trading". Enjoy !

- harlan_james

I liked this book. I found it well written and clear. It had some good advice in it. Not a bad purchase at all

- bradley_robinson

I am portfolio manager and I think this books is outstanding. Having said that I was not too interested in the first section. This is a rare book that is full of insight and prctical suggestions from someone who has succeeded and who was a large influcence on the greatest of all investors Warren Buffett. I would reccommend this book to the beginner and the experienced. I expect to reread this book again and again to rinforce the approach he developed in his philosoph of investing. There were times when I could not put the book down and was disappointed when I reached the end.Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics)

- kolten_howard

good book for investors one of the best books iv read

- messiah_ross

Great read and a really useful reference.

- paul_harris

Great and timeless insights into the fundamentals of value investing.

- royce_cook

Birthday present for my son. He was delighted.

- haven_jimenez

A bit disappinted with the lack of technical details behind stocks.

- eddie_castillo

3.5 stars
A good book for HNIs and Institutional investors. Book tells a lot about how a great business should be. But then this book is of little use to retail investors because the kind of research mentioned in this book is not possible of retail investors with lottle tome and money. Also book is very very lengthy kind of repetitive. Not greatly written. Initial introduction by Ken is also very boring. It might be good to read Investment philosophy part first then conservative investor and lastly those fifteen points

- alessandro_hill

Great book. Extremely useful tips for people who want to learn about making and saving money

- felipe_brooks

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