Common Stocks and Uncommon Profits and Other Writings: 40 (Wiley Investment Classics)
About this deal
When you scuttlebutt, you make more informed decisions due a better basis for analysis and valuation. According to Fisher, a company must qualify on most of these 15 points to be considered a worthwhile investment. However, in an industry such as insurance, a completely different set of business factors is important.
Philip A. Fisher Collected Works, Foreword by Ken Fisher
Because inflation increases a company's expenses and competitors will pressure profit margins, you should pay attention to a company's strategy for reducing costs and improving profit margins over the long haul.
Does management talk freely to investors about its affairs when things are going well but "clam up" when troubles and disappointments occur?
Philip Fisher: History, Market Impact, FAQs - Investopedia Philip Fisher: History, Market Impact, FAQs - Investopedia
Fisher described this point as a catch-all because the "important clues" will vary widely among industries.
Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years? He managed the company's affairs until his retirement in 1999 at the age of 91, and is reported to have made his clients extraordinary investment gains. This is where the moat framework we've spoken about throughout the Investing Classroom series can be a big help.