13 Quotes from Common Stocks and Uncommon Profits book by Philip Fisher

Common Stocks and Uncommon Profits

Hello. This post is a collection of 13 quotes from the book - Common Stocks and Uncommon Profits by Philip Fisher. I hope you enjoy reading these quotes.

Common Stocks and Uncommon Profits Quotes

Doing what everybody else is doing at the moment, and therefore what you have an almost irresistible urge to do, is often the wrong thing to do at all.

The success of a stock purchase does not depend on what is generally known about a company at the time the purchase is made. Rather it depends upon what gets to be known about it after the stock has been bought.

The investor's work is so specialized and so intricate that there is no more reason why an individual should handle his own investments than that he should be his own lawyer, doctor, architect, or automobile mechanic. He should perform these functions if he has special interest in and skill at the particular field. Otherwise, he definitely should go to an expert.

I believe that the economics which deal with forecasting business trends may be considered to be about as far along as was the science of chemistry during the days of alchemy in the Middle Ages.

The amount of mental effort the financial community puts into this constant attempt to guess the economic future from a random and probably incomplete series of facts makes one wonder what might have been accomplished if only a fraction of such mental effort had been applied to something with a better chance of proving useful.

More money has probably been lost by investors holding a stock they really did not want until they could “at least come out even” than from any other single reason.

If the job has been correctly done when a common stock is purchased, the time to sell it is—almost never.

An otherwise good management which increases dividends, and thereby sacrifices worthwhile opportunities for reinvesting increased earnings in the business, is like the manager of a farm who rushes his magnificent livestock to market the minute he can sell them rather than raising them to the point where he can get the maximum price above his costs. He has produced a little more cash right now but at a frightful cost.

An investor should always realize that some mistakes are going to be made and that he should have sufficient diversification so that an occasional mistake will not prove crippling. However, beyond this point he should take extreme care to own not the most, but the best. In the field of common stocks, a little bit of a great many can never be more than a poor substitute for a few of the outstanding.

Usually a very long list of securities is not a sign of the brilliant investor, but of one who is unsure of himself.

There are fads and styles in the stock market just as there are in women's clothes. These can, for as much as several years at a time, produce distortions in the relationship of existing prices to real values almost as great as those faced by the merchant who can hardly give away a rack full of the highest quality knee-length dresses in a year when fashion decrees that they be worn to the ankle.

The ability to see through some majority opinions to find what facts are really there is a trait that can bring rich rewards in the field of common stocks. It is not easy to develop, however, for the composite opinion of those with whom we associate is a powerful influence upon the minds of us all.

When it comes to selecting growth stocks, the rewards for proper action are so huge and the penalty for poor judgment is so great that it is hard to see why anyone would want to select a growth stock on the basis of superficial knowledge.

Quotes by - Deepak Kundu

Hello, I am Deepak Kundu, an avid book reader and quotes collector. I hope you enjoyed reading the above quotes from Common Stocks and Uncommon Profits book by Philip Fisher.