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Philip Fisher's 15 Points Checklist for Good Stock Selection

Original: Philip Fisher's 15 Points Check List ✅ For Good Stocks 🤑 Selection

69.0K views · Jan 29, 2022 · 13:05 min · Watch on YouTube ↗
Takeaway

Apply Fisher's scuttlebutt technique and 15-point checklist to weed out bad companies before investing in any stock.

Summary

  • Buffett credits Philip Fisher for growth-investing philosophy alongside Benjamin Graham; Fisher's book 'Common Stocks and Uncommon Profits' is the source.
  • Scuttlebutt technique uses four sources: competitors (most candid about target's strengths/weaknesses), former employees (apt info on real workings), suppliers (volume and relationship signals), and customers (product satisfaction).
  • 15-point checklist starts with: (1) Expanding market (e.g. KPIT Technologies) not shrinking market (e.g. Hathway Cables hurt by OTT/DTH).
  • (2) Management commitment to developing new products - Nokia cited as cautionary tale for not adopting Android.
  • Tijori Finance website mentioned as a practical tool for finding supplier information for any company.
Philip Fisherscuttlebuttstock selection
Original description
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What is in for You?
00:00 Introduction
01:26 Investment Strategy
02:13 Representation of Competitors
03:44 Former Employees
03:59 Suppliers
04:48 Customers
05:51 Expanding Market
06:28 Develop New Products
06:58 Efficient R&D
07:10 Above Avg Sales Organisations
07:28 Handsome Profit Margins
07:54 Keeping The Profit Margins
08:11 Great Labour Relations
08:46 Awesome Executive Relations
09:22 Depth In Management
09:44 Great Cost Analysis
10:09 Great Industry Specifics
10:40 Long Range on Profits
11:09 Low Risk for Dilution
11:39 Communicates Risks Too
12:03 Unquestionable Integrity