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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 !
After 1.5 years of procrastinating, I have finally finished this poor book. This book isn't suited for advanced investors, for someone whose hobby is investing. I think author being rich enough, decided to give one more push for bigger money and earn some money from readers.
What I dislike: - Book lacks greatly research. In the field of investing research is the key. Each strategy, each investing idea is always backed by data. Modern investor must back its decision by data. This book isn't back by much data.
- Book is poorly written. In London, there are street magicians. Usually, they talk for 20 minutes of what they gonna do, throw some jokes and in the end do some trick that takes 30 seconds. How much time wasted. Exactly, the same with this book. Author lacks clarity, straight to the point and concise, accurate explanations.
- Bit more about data. Author brings examples of either companies or situations from 70s, 80s or even 20s. Over the last 20 years we have been witnessed to such acceleration of technology and differentiation of business models that examples from past years don't really serve a purpose.
Must give it to the author, there were two or three interesting ideas but it isn't enough 280 pages book. I have found brighter and more interesting investing articles in the free online articles than in this book.
In my opinion, this book isn't worth wasting time reading it.
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.
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
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...
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)