Common Stocks and Uncommon Profits is a classic book on investing written by Philip Fisher. In the book, Fisher argues that long-term investment success is more likely to come from carefully selecting a small number of high-quality growth stocks rather than trying to beat the market through frequent trading. He emphasizes the importance of thorough research and due diligence in finding good investment opportunities and provides practical guidance on how to analyze companies and industries to identify those with the potential for long-term growth. Overall, Common Stocks and Uncommon Profits are a valuable resource for investors looking to build a long-term, successful investment portfolio.

Key Points on which Philip Fisher wants us to focus on

  1. The importance of long-term thinking: Fisher emphasizes the importance of thinking about investments in the long term, rather than trying to predict short-term movements in the market. He advises readers to focus on companies with strong long-term prospects and to hold onto their investments for the long haul.
  2. The importance of thorough research: Fisher advises investors to do extensive research before making investment decisions. He emphasizes the importance of understanding a company's business model, financial health, management team, and competitive advantage to make informed decisions.
  3. The value of growth investing: Fisher is known for his focus on growth investing, which involves seeking out companies with strong potential for growth and holding onto them for the long term. He argues that this approach is more likely to lead to long-term success than trying to buy and sell stocks based on short-term movements in the market.
  4. The importance of diversification: Fisher advises investors to diversify their portfolios to spread risk and increase the chances of long-term success. He recommends owning a mix of stocks from different industries and sectors, as well as other types of investments such as bonds and real estate.

In my opinion Philip Fisher books is different from others books in Personal Finance domain because of the following reasons

  • Emphasis on long-term investing: While many other books in the personal finance genre focus on short-term strategies or tactics, Fisher's book emphasizes the importance of long-term thinking and investing. He advises readers to take a patient and disciplined approach to investing and to focus on companies with strong growth potential that can be held for the long term.
  • Analysis of a company's management: Fisher argues that a company's management team is one of the most important factors to consider when investing in stocks. He advises readers to carefully assess the quality of a company's management team and to look for signs of strong leadership and good decision-making.
  • Focus on growth investing: Fisher's book focuses on what he calls "growth investing," which involves identifying and investing in companies with strong growth potential. He advises readers to look for companies that are well-positioned to capitalize on emerging trends and new technologies and to avoid those that are likely to be disrupted or rendered obsolete.
  • Practical and actionable advice: Unlike some other books in the personal finance genre, Fisher's book provides practical and actionable advice that readers can put into practice when investing in stocks. He covers a range of topics related to investing, including stock selection, portfolio construction, and risk management, and provides concrete examples to illustrate his points.
  • Long-standing popularity and influence: Common Stocks and Uncommon Profits has been widely read and highly regarded since its publication in 1958, and is considered to be a classic in the field of investing. Many successful investors and financial professionals credit the book with influencing their investment approach and philosophy.
  • Emphasis on research and analysis: Fisher stresses the importance of thorough research and analysis when investing in stocks. He advises readers to gather as much information as possible about a company and its industry and to be willing to ask tough questions and dig deeper to get a full understanding of a company's prospects and potential risks.
  • Importance of having a well-defined investment philosophy: Fisher argues that it is important for investors to have a clear and well-defined investment philosophy that guides their decision-making. He advises readers to think carefully about their own investment goals and risk tolerance and to develop a framework for evaluating investment opportunities that align with these factors.
  • Importance of diversification: While Fisher advocates for finding and investing in high-quality companies with strong growth potential, he also emphasizes the importance of diversifying one's portfolio. He advises readers to spread their investments across a range of different companies and industries, in order to reduce risk and increase the likelihood of long-term success.