“Fisher’s insights into long-term growth investing are essential for anyone aiming to build wealth through stocks. His approach to identifying quality companies with sustainable growth is invaluable.” – Thierry, Co-Founder
“Common Stocks and Uncommon Profits” by Philip A. Fisher is a classic in investment literature, offering invaluable insights into the long-term strategy of growth investing. Fisher emphasizes thorough research, a deep understanding of company fundamentals, and the importance of visionary thinking when picking stocks. His advice on “scuttlebutt” research—gathering insights from industry insiders—and his focus on high-quality companies with long-term growth potential provide investors with a timeless guide to making sound investment decisions. Fisher’s principles have greatly influenced arvy’s investment process, making this book foundational to our approach and a lasting guide in shaping our investment style over the years.
COMMON STOCKS AND UNCOMMON PROFITS SUMMARY (BY PHILIP FISHER)
10 Key Lessons from Common Stocks and Uncommon Profits
- Thorough Research is Essential:
Fisher advocates for extensive research before investing. By understanding the company’s industry, competitive position, and growth potential, investors can make informed decisions that minimize risk. - The “Scuttlebutt” Method:
Fisher recommends gathering information from various sources close to the company, such as employees, customers, and competitors. This method provides a unique perspective on the company’s strengths and weaknesses that’s hard to find in public reports. - Invest in High-Quality Companies:
The focus should be on companies with excellent management, a strong market position, and potential for sustained growth. Fisher believes that such companies can provide substantial returns over the long term, even if they’re initially more expensive. - Look for Long-Term Growth Potential:
Fisher emphasizes buying stocks with strong long-term growth potential. Companies that innovate, consistently invest in R&D, and have a clear vision for the future are more likely to succeed in the long run. - Management Integrity and Capability Matter:
Evaluating a company’s management is essential. Fisher encourages investors to look for capable leaders with a proven track record of ethical and effective decision-making. - Profit Margins Indicate Health and Efficiency:
Strong profit margins are a good sign of a company’s operational efficiency and competitive advantage. Fisher suggests avoiding companies with declining margins, as it can signal poor management or increased competition. - Avoid Companies that Chase Quick Profits:
Fisher warns against companies that constantly shift their focus to chase short-term profits. Such companies are less likely to build long-term value and may struggle in difficult economic times. - Hold on to Investments in Great Companies:
Fisher believes that if a company’s fundamentals remain strong, investors should hold on to their shares. Selling too early, particularly with high-quality growth stocks, can lead to missed long-term gains. - Patience is Key to Profiting:
Fisher’s philosophy emphasizes patience. Many high-quality investments take time to appreciate, so it’s important for investors to stay committed to their research and not be swayed by short-term market fluctuations. - Continuous Learning and Adaptation:
Fisher advocates for continuous education and adapting to new market conditions. Staying informed about the latest industry trends and evolving one’s investment approach over time is essential for long-term success.
Lastly, here’s the fifteen questions Phil Fisher used as a checklist when he was looking for multibagger stocks to buy and hold for years, or decades.
The list was published in his 1957 classic “Common Stocks and Uncommon Profits”, but is just as relevant today.

arvy’s takeaway: “Common Stocks and Uncommon Profits” by Philip A. Fisher has been an essential guide in shaping our investment style at arvy. Fisher’s emphasis on research, quality companies, and patience is core to our process and has proven invaluable in our pursuit of long-term growth through thoughtful investing. This book is a must-read for anyone seeking sustainable and significant returns through well-researched, high-quality investments.
Common Stocks and Uncommon Profits
English Version: Amazon.com
Deutsche Version: Amazon.com
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