Just finished reading up on the book about “Common Stocks and Uncommon Profits” by Philip A. Fisher.
The fifteen points mentioned are:
- Company must have prospect of increasing growth over the next few years
- Company must be constantly evolving to promise increasing growth once existing products mature
- Company must have a wide profit margin in their products.
- Company must be constantly evolving to sustain their already wide profit margin
- Research and Development Effectiveness
- Sales Effectiveness
- Personal Relationship
- Labour
- Executive
- Depth in management
- Competency in managing finance and accounts
- Does company have a short range or long range outlook
- Inherent Sustainable Competitive Advantage, i.e. patents
- Probability of Share Dilution to raise capital in the future.
- Management is transparent and do not clam-up on bad news.
- Management has Integrity.