![]() ![]() In the book, Fisher lays out "15 Points to Look for in a Common Stock" that can help investors do just that.ġ. ![]() Valuation may matter, but it's secondary to identifying top-notch businesses. No "net-nets" or "cigar butts" here - Fisher is more interested in finding and investing in the few excellent companies in the market. This approach is clearly different from traditional value investing. ![]() If the company is deliberately and consistently developing new sources of earning power, and if the industry is one promising to afford equal growth spurts in the future, the price-earnings ratio five or ten years in the future is rather sure to be as much above that of the average stock as it is today.This is why some of the stocks that at first glance appear highest priced may, upon analysis, be the biggest bargains. ![]() For instance, at many points in the book, Fisher says a high price-to-earnings ratio should not be an automatic turn-off for investors. First written in 1958 - nearly 25 years after Graham and Dodd's Security Analysis established the framework for value investing - Common Stocks and Uncommon Profits is cut from a very different cloth than Graham and Dodd. ![]()
0 Comments
Leave a Reply. |