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Common Stocks And Uncommon Profits By Philip Fisher Book PDF Free Download
Clues from the Past
You have some money in the bank. You decide you would like to buy some common stock. You may have reached this decision because you desire to have more income than you would if you used these funds in other ways.
You may have reached out because you want to grow with America.
Possibly you think of earlier years when Henry Ford was starting the Ford Motor Company or Andrew Mellon was building up the Aluminum Company of America, and you wonder if you could not discover some young enterprise that might today lay the groundwork for a great fortune for you, too.
Just as likely you are more afraid than hopeful and want to have a nest egg against a rainy day.
Consequently, after hearing more and more about inflation, you desire something which will be safe and yet protected from further shrinkage in the buying power of the dollar.
Probably your real motives are a mixture of a number of these things, influenced somewhat by knowing a neighbor who has made some money in the market and, possibly, by receiving a pamphlet in the mail explaining just why Midwestern Pumpernickel is now a bargain.
A single basic motive he’s behind all this, however. For one reason or another, through one method or another, you buy common stocks in order to make money.
Therefore, it seems logical that before even thinking of buying any common stock the first step is to see how money has been most successfully made in the past.
Even a casual glance at American stock market history will show that two very different methods have been used to amass spectacular fortunes.
In the nineteenth century and in the early part of the twentieth century, a number of big fortunes and many small ones were made largely by betting on the business cycle.
In a period when an unstable banking system caused recurring boom and bust, buying stocks in bad times and selling them in good had strong elements of value.
This was particularly true for those with good financial connections who might have some advanced information about when the banking system was becoming a bit strained.
But perhaps the most significant fact to be realized is that even in the stock market era which started to end with the coming of the Federal
Reserve System in 1913 and became history with the passage of the securities and exchange legislation in the early days of the Roosevelt administration, those who used a different method made far more money and took far less risk.
Even in those earlier times, finding the really outstanding companies and staying with them through all the fluctuations of a gyrating market proved far more profitable to far more people than did the more colorful practice of trying to buy them cheap and sell them, dear.
If this statement appears surprising, further amplification of it may prove even more so. It may also provide the key to opening the first door to successful investing.
Listed on the various stock exchanges of the nation today are not just a few, but scores of companies in which it would have been possible to invest, say, $10,000 somewhere between twenty-five and fifty years ago and today have this purchase represent anywhere from $250,000 to several times this amount.
In other words, within the lifetime of most investors and within the period in which their parents could have acted for nearly all of them, there were available scores of opportunities to lay the groundwork for substantial fortunes for oneself or one’s children. These opportunities did not require purchasing on a particular day at the bottom of great panic.
The shares of these companies were available year after year at prices that were to make this kind of profit possible.
What was required was the ability to distinguish these relatively few companies with outstanding investment possibilities from the much greater number whose future would vary all the way from the moderately successful to the complete failure.
| Author | Philip Fisher |
| Language | English |
| No. of Pages | 317 |
| PDF Size | 26.5 MB |
| Category | Stock Market |
| Source/Credits | archive.org |
Common Stocks And Uncommon Profits By Philip Fisher Book PDF Free Download