Common Stocks and Uncommon Profits and Other Writings

PHILIP A. FISHER began his career as a securities analyst in 1928, and founded Fisher & Company, an investment counseling business, in 1931. He is known as one of the pioneers of modern investment theory.

• Preface What I Learned from My Father’s Writings xiKenneth L. FisherIntroduction 1Kenneth L. FisherPart One Common Stocks and Uncommon ProfitsPreface 311. Clues from the Past 342. What “Scuttlebutt” Can Do 443. What to Buy: The Fifteen Points to Look for in a Common Stock 474. What to Buy: Applying This to Your Own Needs 795. When to Buy 896. When to Sell: And When Not To 1057. The Hullabaloo about Dividends 1148. Five Don’ts for Investors 1239. Five More Don’ts for Investors 13510. How I Go about Finding a Growth Stock 16211. Summary and Conclusion 172Part Two Conservative Investors Sleep WellEpigraph 176Introduction 1771. The First Dimension of a Conservative Investment 1802. The Second Dimension 1873. The Third Dimension 1984. The Fourth Dimension 2075. More about the Fourth Dimension 2136. Still More about the Fourth Dimension 218Part Three Developing an Investment PhilosophyDedication to Frank E. Block 2261. Origins of a Philosophy 227The Birth of Interest 228Formative Experiences 229First Lessons in the School of Experience 231Building the Basics 232The Great Bear Market 234A Chance to Do My Thing 235From Disaster, Opportunity Springs 236A Foundation is Formed 2372. Learning from Experience 238Food Machinery as an Investment Opportunity 239Zigging and Zagging 242Contrary, but Correct 243Patience and Performance 244To Every Rule,There Are Exceptions . . . But Not Many 247An Experiment with Market Timing 248Reaching for Price, Foregoing Opportunity 2493. The Philosophy Matures 252E Pluribus Unum 253History versus Opportunity 255Lessons from the Vintage Years 257Do Few Things Well 259Stay or Sell in Anticipation of Possible Market Downturns? 260In and Out May Be Out of the Money 263The Long Shadow of Dividends 2644. Is the Market Efficient? 266The Fallacy of the Efficient Market 267The Raychem Corporation 270Raychem, Dashed Expectations, and the Crash 271Raychem and the Efficient Market 274Conclusion 275Appendix Key Factors in Evaluating Promising Firms 279Functional Factors 279People Factors 281Business Characteristics 282Index 283

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