BOOK REVIEW: COMMON STOCKS AND UNCOMMON PROFITS

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BOOK: COMMONSTOCKS AND UNCOMMON PROFITS

AUTHOR: PHILIP A. FISHER

Common stock uncommon profit book is related to stock market. It is written by Philip A. Fisher. I completed this book in almost twenty two hours (not continuous). This book is for investors. It is written in 1956. It is about understanding companies to buy, sell or hold before making any investment  in it. 

In initial chapters, we get clues from past, how people get profit in past? There were two types of buying in past.

a. Buy stock at cheap price.

b. hold the stock for longer time, until you get desired profit

Second type is more relevant for getting desired profit. Earlier some good companies were big corporation under a family but business pass on to generations. The corporation must grow irrespective of any family. Now people deserve to grow corporation as they are not family but professionals who are running the business.

Searching for right stock is somewhat difficult and impractical. We have to find the person who is skilled and knew more about the company. This is impractical because these people are already sitting in top paying jobs. But we have another techniques to find the best company.

Find the company which is serving the market from very long time. The company which has well advised plan. The company which is desirous to increase sales. There are so many investors who do not go through every detail pertaining to particular stock. People only research for profitable stock rather good stock for long term. Buy the stock which company is debt free and growing. Sell the stock, if it is unattractive after buying. Sell the stock which is not growing or management is falling.

Don’ts for the investor-

IPOs can be risky

Attractive annual report can be misleading

Don’t chase rat race to select the stock.

The language of the book is somewhat complicated. It can be read by any age group. I find something new in this book which is not told in most of the books and i.e. investors philosophy. I recommend this book to every investor. It will definitely add value to their investment journey.


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