Hi Investors ,
We would like to share it with you Philip Fisher’s , The Investment Secrets in Common Stocks and Uncommon Profits ,fifteen things that a successful investor should look for in his or her common stock investments.
About Philip Fisher ( 1907- 2004)
- Greatest investments minds in history
- Developed a buy-and-hold value and growth model for investments
- Wrote several books one of which is watershed Common Stocks and Uncommon Profits
- First to introduce the now-famous “scuttlebutt” approach that encouraged investors to develop a deep understanding of his or her investments by thoroughly analyzing the financial statements, interviewing managers, competitors, employees, vendors, and customers.
1. Does the company have products or services with sufficient market potential to make possible a sizeable increase in sales for at least several years?
A company must have a competitive edge to offer product and service which helps the company to make more money for themselves and also help other business to make money!
2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potential when the growth potential of currently attractive product lines have largely been exploited?
The company you are looking into investing must be looking into ways to create more business opportunities.
3. How effective are the company’s research and development efforts in relation to its size?
Is the company overspending or under spending as compared to other companies in the same general field? By comparing, conclusion are drawn both as to the importance of a company’s research effort in relation to the competition and the amount of research per share of stock that the investor is getting in a particular company.
4. Does the company have an above-average sales organization?
No matter how good a product is, without sales, advertising and distribution, survival is impossible!
5. Does the company have a worthwhile profit margin?
Study a company’s profit margin – determine the number of cents of each dollar of sales that is brought down the operating profit with comparison to different companies in the same industry for a series of years.
Next week , we will share the next 5 points .
Mind Kinesis Value Investing Academy