IEMS Journal of Management Research

Abstract

Philip Fisher’s Common Stocks and Uncommon Profits and Other Writings is an investment masterpiece that emphasizes qualitative analysis and long-term growth investing. First published in 1958, it has become a classic in the field of investment literature. The book is divided into multiple parts, with the core being Fisher’s fifteen-point checklist, which guides investors on evaluating the fundamental strengths of a company. This checklist covers areas such as the company’s research and development capabilities, profit margins, management integrity, and competitive positioning. Fisher’s approach underscores the importance of conducting thorough research, often referred to as “scuttlebutt,” by gathering information from industry experts, employees, suppliers, and competitors.
A key theme in the book is the distinction between growth stocks and value traps. Fisher advocates for investing in companies with strong potential for long-term earnings growth rather than focusing solely on low-priced or undervalued stocks. He explains the concept of buying and holding, emphasizing that the best gains come from identifying great businesses and allowing them to grow over time, without frequent trading.