Hello friends, in today’s article we see COMMON STOCKS AND UNCOMMON PROFITS book introduction. In this introduction Philip A. Fisher son write the three different preface about the COMMON STOCKS AND UNCOMMON PROFITS book. This introduction help you to know about the which parts of this book is very very much important and other parts is most valuable. So let’s start’s with first preface.
Ken fisher written three preface, let’s starts with first preface
What i learned from my father’s writing:-Common Stocks & Uncommon Profits
Ken fisher says, his first stock is reverse 10 bagger, means if they buy the $100 stocks and that stocks goes to $10. So that lose is 90% means 10 bagger reverse stocks.
So ken fisher say’s , ” he is not the clear or topper of the class in college and school, and not even completed his higher education from famous university like Harvard university or nothing his special accomplishment they has to written in this preface.” (Common Stocks & Uncommon Profits)
But they got the 15 points from in COMMON STOCKS AND UNCOMMON PROFITS book, and now they manage the billions dollar in his funds. So if they do without doing anythings is special so any buddy can be do better in the stock market by applying this 15 points.
Ken say’s, ” In this book 15 points is directly says the how to buy company if you want to maximum profits, and if you compare that stocks with scuttlebutt method then you know company actually what is the business and how it grow and what problem comes in this process.”
Scuttlebutt method:-Common Stocks & Uncommon Profits
In this method, you have to talk companies employee, supplier, competitor and customer and also the management of company. Why this people? because this people know the know what is going in the company and clear image of strength and weakness. Customer tell you about the product and why they people buy again and again, and how they know about the new products means service and marketing department information. Supplier tell, about the raw material side or inventory of company. Competitor say’s how company is strong and his weakness. (Common Stocks & Uncommon Profits)
So this information you get by following the scuttlebutt method, so this information you found on the main street not on the wall street or dalal street, So this information is good and trustworthy.
If you want to collect information form the wall street, then you face the dot com bubble candle sticks so you get the information form the main street is safe and trust worthy than the wall street candle sticks charts and financial reports of accounting. (Common Stocks & Uncommon Profits)
Read more: The Intelligent investor book summary
If you are ask customer and supplier, you get the truth of company.
Scuttlebutt technique is very helpful to you to stay away from those company that have the good on paper but actually not in real situation, so this types of company stocks get in ponzi sheme, then they lose the 90-95% stocks value.
So this 15 points help you to define which types of company you found, is outstanding company or Ponzi scheme company. (Common Stocks & Uncommon Profits)
Philip A. Fisher believe in hodling stock forever, and ken believe in holding stocks for 5 to 10 years and growth stocks, value stocks, large cap stocks, small cap stocks, all types of stocks you can use this method, because this method help you to find out which is quality company, whatever they company in any industry.
Ken say’s Scuttlebutt chapter is about 3 page but they told this is best part of book and very important parts
One of the best questions of Philip A. Fisher is not in this book, key say, ” What are you doing that your competitors aren’t doing yet. “
So that means if company is not doing anythings means they lead the others company in same industry and other company follow that company. (Common Stocks & Uncommon Profits)
Ken says, 15 points of company quality and scuttlebutt method is the diamond of this book. so and other topic is also very much important, like 10 don’t for investors.
So ken suggest you have to read this book as many as time while you analyze company.
Second preface is all about the Philip A. fisher family, you can read, buying this book, by click on image, so let’s
Starts Preface by Philip A. Fisher :
In this preface author give the shorts story of writing this book. Before writing this book, author run the investment counselling business at the age of 26, they run this for 10 years, and after that
in 1941 he got the job in army air force. They work there for 3.5 years. so in this time period they reviewed there investment actions. So from that review some good points is born that are different from the financial community analysis rules. (Common Stocks & Uncommon Profits)
After end war they use this 15 points and they got the good return for 12-13 years, and they want to keep the printed record, so they write this book.
Author says, beyound that 15 principles other two importance things matter for investment success.
- Need patience for making big profit.
- Stock market is deceptive and follow the crowd , the results are not good.
so from next article, you get the chapters of this book.
Read more: One up On wall Street book summary