Common Stocks and Uncommon Profits

Philip Fisher's thoughts and experience are invaluable and timeless. Not as boring (to read) as the intelligent investors (though both are equally important reading). I particularly like the chapters about "Fifteen points to look in a common stocks","when to buy", "when to sell", "Five don't", and "Developing your investment philosophies". One particular topic that I like best is about "Don't follow the crowd". Also on "How I go about finding a growth stock" Some of the area that the a company/stock (to buy) should have a lot of these criteria: 1. Product and service with potential increase in sales for seveal years 2. Management who commited to develop products to continue growth 3. Size of company's research versus its size (enough research needed) 4. Good sales organization 5. Worthwhile profit margin 6. Activity to improve profit margin 7. Good labor and personal relation 8. Outstanding executove relations 9. Depth in management 10. Good accounting controls and cost analysis 11. favorable (degree of skills) compare to the competition 12. Long range outlook on profit 13. Equity financing in the next couple years should ot cancel the existing shareholder benefit from the anticipated growth 14. Management talk freely to investor about tings that goes well and also when things doesn't go well 15. Management needs to have unquestionable integrity Five don'ts for investor: 1. Don't buy into promotional companies (development companies) 2. Don't ignore stocks just becuase it is traded over the counter 3. Don't buy stocks because you like the tone of annual report 4. Don't assume the high price is an indication of future growth 5. Dont quibble over small fraction (when you buy a stock) Five additional don'ts for Investor 1. Don't overstress diversification 2. Don't be afraid buying in a war scare 3. Don't forget your Gilbert and Sullivan 4. Don't fail to consider time as well as price in buying a true growth stock 5. Don't follow the crowd This book also covers what a good business should have (it recaps of what they teach you in business school). I have 10 years of investing experience before I read this book (I know I should have read this book earlier), and 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. This book will also help to open your eyes (especially for beginner) that investing (the right way) is not easy and is a complex process, however the result from a patient and diligent investor could be great. There are 3 important aspects of a business (apart from the stock price) which this book will cover most of them: 1. The Business (and the Industry) 2. The Financials 3. The People (Management, Personnel) I also recommend you all to read Ben Graham's "The Intelligent Investors" (with commentary by Jason Zweig who will give more recent and relevant example), and Peter Lynch's "One up on Wall Street". Once you read them all (coupled with some real experience), then you are ready to be an investing pro... Happy Investing!