Common Stocks and Uncommon Profits and Other Writings
Key strategies and principles for evaluating and investing in growth stocks.
Summary of 6 Key Points
Key Points
- Scuttlebutt Technique for Research
- Fifteen Points to Look for in a Common Stock
- Conservative Investors Sleep Well
- Growth Stocks vs. Value Stocks
- When to Sell a Stock
- The Challenge of Investing in Changing Times
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Scuttlebutt Technique for Research
The Scuttlebutt Technique is an approach to investment research that involves gathering information from various sources to build a complete picture of a company’s potential as an investment. It’s a method that encourages investors to go beyond standard financial statements and look into the qualitative aspects of the business. This technique involves talking to a variety of people who have direct experience with the company in question, such as employees, customers, competitors, and suppliers. By doing so, an investor can gain insights that are not readily available through traditional channels…Read&Listen More
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Fifteen Points to Look for in a Common Stock
The Fifteen Points to Look for in a Common Stock are a set of criteria that investors can use to evaluate potential stock purchases. These points are part of a philosophy that emphasizes investing in high-quality companies with the potential for sustained growth. The list encourages investors to look beyond short-term market trends and focus on the fundamental characteristics that make a business likely to prosper over the long term…Read&Listen More
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Conservative Investors Sleep Well
The perspective outlined in ‘Conservative Investors Sleep Well’ revolves around the notion that conservative investing does not necessarily mean avoiding risk altogether, but rather involves understanding and managing risk. It emphasizes the importance of investing in strong companies with a solid track record of growth and stability. The author suggests that these companies often have durable competitive advantages, competent management teams, and a clear vision for long-term growth, which can provide a measure of safety amid market volatility…Read&Listen More
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Growth Stocks vs. Value Stocks
The perspective given in the writings on growth stocks versus value stocks is one of favoring long-term investment in growth stocks. It is emphasized that growth stocks, while they may appear more expensive in terms of their price-to-earnings ratios, have the potential to deliver substantial returns over time due to their ability to increase earnings at a rate above the average company. The argument is that the intrinsic value of a growth stock is not just in its current earnings but in its future potential to grow those earnings…Read&Listen More
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When to Sell a Stock
The decision of when to sell a stock is as crucial as the decision to buy. The book presents the idea that investors should not sell their holdings merely because they have increased in price. A stock that represents a company with excellent growth prospects may continue to provide value even after substantial price appreciation. The philosophy behind this is that an excellent company can often continue to grow and compound in value over many years, and selling simply because of a price increase can be short-sighted…Read&Listen More
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The Challenge of Investing in Changing Times
The challenge of investing in changing times is addressed in the context of understanding that the economic and business environment is never static. The author stresses the importance of recognizing that industries and companies go through phases of growth, stagnation, and decline. He points out that discerning investors must be able to anticipate these changes and adapt their investment strategies accordingly. The ability to foresee major shifts in consumer preferences, technological advancements, or regulatory changes can significantly impact the success of an investment portfolio…Read&Listen More