phil fisher common stocks uncommon profits

I fell victim to this myself when I was reading the annual report of Realty Income ( O), a real estate firm famous for paying out a dividend monthly. But Phil Fisher cautions us against thinking that the opposite is necessarily a good sign-a company with an annual report that touts old-fashioned values and long-term planning is automatically a company that you should entrust with your investment dollars. If a company puts obfuscating footnotes in its annual report that lists unclear expenses in size six print, that ought to send up red flags about management. Don’t buy shares of a company just because you like the voice of the annual report.

In his book, 'Common Stocks and Uncommon Profits,' Fisher gave investors many warnings of types of investments to avoid, and I included a list of my favorite five below.ġ. Fisher claimed that he at one point owned 30 stocks, but only 6-8 of them were 'very serious investments.' Fisher followed his six to eight investments very seriously-reading everything he could find on the companies-and holding them for as long as he did not believe the company’s competitive position/long-term profit generating ability was not compromised. Phil Fisher, the legendary professor and investor who authored ' Common Stocks and Uncommon Profits' as well as ' Conservative Investors Sleep Well,' developed a reputation for finding a few very good investments, buying as many shares of them as he could afford, and then holding them indefinitely (often for decades on end), as they quietly compounded regardless of what turmoil was occurring in the United States.

Phil fisher common stocks uncommon profits