The Warren Buffett Way By Robert G. Hagstrom is the book that I currently read for now. One of the interesting topics I have read so far is how simple Philip Fisher penetrates stock analysis. First, I want to share that using the Philip Fisher method from this book may work for you and may not. So, I suggest keeping believing in your analysis. I really hope that this blog can be one of your weapons in stock picking.
Fisher believes..
Fisher believes that people could make superior profits by :
Companies with above-average potential
Capable management
Companies with above-average potential meaning the company's ability to grow sales over the years at rates greater than the industry average. This Growth is a combination of two factors :
A significant commitment to research and development
Effective sales
As Fisher said, this is all just half of the way, and the other half is consistent profit.
The company will sustain itself in the future if it can maintain profitability without requiring equity financing.
"If a company can grow only by selling stocks, he said, the larger number of shares outstanding will cancel out any benefit that stockholders might realize from the company's growth." - Philip Fisher.
Capable management will be shown by corporate action, news, employee, and executive.
Fisher also believes that to be successful, investors needed to do just a few things well.
After I read this, I was blown!
This is a short blog as usual if you find this blog entertain, helps, and inspire you, consider sharing it with your friends and family. You can also visit www.Jninvestama.com/shop for a comfy clothes. Keep Inspires! Cheers
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