Images: Shutterstock, Goodreads
Philip Fisher’s ‘Common Stocks and Uncommon Profits’ teaches readers how to invest wisely by going beyond stock prices and focusing on business fundamentals.
Look for companies that have a future vision and sustainable demand. These businesses come with competitive advantages and can give you stable growth.
Before investing, get a real-world view, beyond annual reports and news headlines. Talk to customers, vendors and ex-employees to get a better understanding of the businesses.
A business is only successful when good people are behind it. Invest in companies with honest and forward-thinking management that focus on innovation and ethics.
Engage in concentrated investments instead of investing in 20-30 stocks out of fear. Focus on quantity over quality and avoid over-diversification of your portfolio.
When you come across sound and stable companies, invest and hold even when the market is volatile. Let compounding do its magic and watch your returns grow.
Only buy when you understand the business and believe in its long-term goals. You cannot always predict short-term movements in the market.
Thanks for reading!
See next