Philip Arthur Fisher is an iconic American stock investor and widely respected author. His book, “Common Stocks and Uncommon Profits” was initially published in 1958 and has since become a classic for investors. Across its pages, Fisher shares practical advice on investing and ongoing strategies for identifying a company’s intrinsic value.
In “Common Stocks and Uncommon Profits,” Philip Arthur Fisher puts a strong emphasis on research and independent analysis. He has been quoted as saying ‘The stock market is filled with individuals who know the price of everything, but the value of nothing.’ Fisher believes that some of the most successful investors are those that act on their own research and knowledge, rather than relying on the advice or opinions of others.
In the book, Philip Arthur Fisher focuses on the idea that value investing is the key to successful investments. He emphasizes the importance of studying and understanding a company before investing in its stock. Fisher recommends analyzing important financial data such as cash flow and a business’s growth potential. Additionally, he suggests weighing the potential risks that come with each potential investment.
Fisher believes that it is important to invest in quality stocks, rather than picking stocks based on past performance. He also stresses the importance of diversifying a portfolio. The book suggests putting investments in various stocks to reduce risk.
Philip Arthur Fisher also places a significant amount of importance on looking at a company’s management. He believes that it is important to invest in companies that have good management, which is responsible for setting the direction and strategy of any given business.
The philosophy behind the book is that by following Philip Arthur Fisher’s advice, investors can realize “uncommon profits” in the stock market. He suggests that by carefully researching and selecting stocks with potential for long-term growth, investors can maximize returns and minimize risk. Furthermore, by learning from Phillip’s strategies, investors can develop their own unique investing style that works for them.
“Common Stocks and Uncommon Profits” by Philip Arthur Fisher is considered to be a must-read for any serious investor. Though written more than 60 years ago, the principles contained in the book are still relevant and recommended by some of the top investment professionals today. By focusing on value investing, developing an independent research process, and analyzing company management, investors may uncover investments opportunities with the potential for significant returns and lower risk.
