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Let's just here for 10 seconds,. the words of the world's

greatest investor, Warren. Buffet, I was very influenced

by feel fresher.

When I first read is

two bucks back around 1960 or. thereabouts and I think that

they're terrific books.

I think Phil has a terrific guy. to myself as being a sort of a

hundred percent, Ben Graham and. a hundred percent Phil fish.

One of the best books on. investment

was written,

think it 1958.

I think I read it around 1960

by Phil Fisher called Common. Stocks and Amin province in

stock market, there are two. ways to make money

one

is to time the market, that is. buying when the markets are low

and selling when the markets. are expensive,

which is psychologically very. difficult.

And this involves investing. huge sums of money during

highest pessimism and. uncertainty.

And then selling at the time of. high optimism, the other way is

to find outstanding companies. and hold them forever.

Mr.

Phil Fisher was known for the. latter, He was an advocate of

buying businesses, which have. very long term prospects and

actually never selling them mr.

Phil Fisher started as. investing career in 1928

just before the Great. Depression of 1929 when

America's market lost more than. 90% of its value.

And over the years developed. his style of investing in the

great businesses and actually. holding them for a very long

time as he grew in his. investing career and developed

confidence on very You. businesses, he added money to

them

and sold the businesses, which. he thought were we, you will be

surprised to know that the. number of companies in his

portfolio.

As his fund group reduced to. just six, one of which was

Motorola, which he held onto. until his death, and it has his

this philosophy, which made. Warren Buffet.

Say, the best time to sell a. good business is never if

Warren Buffet, as he said makes. investing on the principles of

Phil Fisher.

Let's see.

They are and how these can help. us to make uncommon profits on

our investments.

This is the better investor. helping, you achieve your

financial goals and freedom.

Through organizing your finance,. stock market, investing and

learning from billionaires.

And these are

top five lessons from the book,. Common Stocks and uncommon

profits written by

Phil vischer lesson.

Number one,

what to buy

a business has attracted your. attention.

For whatever reason,

how would you come on to a. conclusion that it is worthy of

investment of your hard-earned. money?

Phil vischer lays out of 15. Point checklist to look for

when you're looking for a. potential investment

these are one

how big is the potential?

The very first thing you must. know is what are the products

that the company sells in order. to make money?

You just cannot invest in a. company just because your

friend told you about it or. just because you looked at the

price of it,

once you What is the product of. the business?

You must evaluate that?

How huge is the potential for. growth for that product which

can lead to sizable increase in. sales for many years to come,

for example, jockey

unlike the west where Calvin. clean is?

The underwear that every human. desires.

There actually was not a single. brand like that in Asia, not

only that the underwears lacks. style and quality

a company called jockey

notice this and they started. branding, and gaining customers.

MERS in Asia, much like Calvin. clean invest.

They have been increasing their. sales by almost 20% for last 15

years.

And even today,

the growth engine is still. running at the same Pace

underwear.

Have a short replacement cycle. and one that cannot be

disrupted by technology.

Irrespective of how the economy. is performing, or what is

happening to inflation.

One won't stop buying their. underwears second new product

development.

Obviously, you would have not. known Apple today, if they

would have slept with their. bums facing the fan after their

first iPhone, one hearts of the. people.

It is one thing to develop a. successful product, but then

all products mature.

And as that happens, the. business need a new engine for

growth Apple.

Keep coming with new iPhone. every couple of years, which

has features that attract more. customers.

Not only that you will know if. you look at the history that

how the products that apple. offers Have evolved over years,

keeping the growth engines of. the company running,

third,

efficient research and. development.

Google started off as a search. engine.

And over a year, spent huge. amount of money and research

and development their project. of Google Map started from a

very small scale and slowly. expanded today.

You can literally feel yourself. walking on a track on Google

Maps.

Google uses its map to acquire. a lot of data about people

which further help them in. researching analyzing and

growing the In business of. advertisement.

Today, one cannot imagine. traveling or driving without

Google Maps.

Just imagine if they just. started charging, you one

dollar per month for using. Google Map tip profit would

increase in billions

but they don't charge you a. dime.

Their expense of running.

Google Maps is like investing. in research and Analysis it

will give them outside profit. and Edge in the future.

As we know that data is the new. oil, fourth does a product have

about Above average product. quality.

A company may be selling a. product but it has no meaning.

If the product is of poor. quality customers return to buy

Burgers from McDonald's,

because the burgers are of good. quality

customers, using the product. must be satisfied and would

want to shed off some money to. buy the product again and again,

almost all the great Brands pay. large emphasis to Quality even

at the cost of little higher. expenditure,

this helps them keep their. customers loyal and onto I said,

50 does the company have high. profit margins profit?

Margins means how much profit. you earn on the sale of a

product worth $100,

if you sell a water bottle,. $400, however, filling the

water and buying the bottle. cost, you $60.

Then the difference is the. profit margin,

which in this case is 40%. higher profit, margins in

comparison with the competitors

means company is able to charge. premium for the product.

This is a Good sign,

high and growing number of. sales are of no use, if a

long-term, they do not increase. profits,

Warren, Buffet calls this. Principle as economies of scale

a good business, which has high. sales and improving profit.

Margin is the one

where, by increasing the sale. of the product two times, the

profit increases four times or. even more.

For example,

the sales number of apple

has grown from 13 billion. dollars in 2005 to 275, Five

billion dollars in 2021,

an increase of 21 times in 16. years.

Can you make a guess how much. would the prophets have grown?

The prophets after-tax have. grown from 1 billion dollar in

2005, 257 billion dollar in 2021.

A gigantic gain of 57 times. whether sales just grew 21,

times 6.

What is the company doing to. maintain the profit margins?

This is almost It's like the. second point, the present

profit margins may be good but. you will end up losing money.

If the business has no plans to. maintain the same profit

margins,

Xerox was a wonderful business.

Its copier had record sales. year.

After year,

the owners became lazy and did. not do much to maintain the

same momentum in future.

Seventh

are the employees in the. company.

Happy

employees are the backbone of. the company.

If the increase in profit that. you're seeing,

is because of the cell.

Cuts of the employees at lower. levels.

That is not an ideal situation.

If employees are not happy to. work in a particular company

that speaks badly of the future. prospects of it.

A company with employers going. on strike against management

again and again is an example. of what you must stay away from

eight are the executives in the. company happy and transparent.

As much as work environment of. employees at lower levels is

important.

You must know whether the. people at the executive levels

are Happy working in the. company and transparent

ninth, does the company have. depth in its management?

A company need to be able to. survive on its own without

relying solely on one?

Brilliant manager,

Elon Musk is an example, with. Tesla.

Verse musk is gone will Tesla. continue to grow and

continually come up with wind. blowing and ambitious plans to

change the world.

Some businesses have such a. great management system that

the business actually runs on. autopilot.

It was this principle which led. buffets say

I like to own businesses, which. even an idiot can run 10th,

does the company have good. accounting?

If there is a pizza company and. if it does not know that, which

pizza gives them the highest. revenue and which the lowest

the like, a foolish person. company would be investing

their money when they were. selling pizza.

Making no good use of the money.

Thus, it is prudent for a. company to know that what

section of the business produce.

How much income Um, only then. can they analyze and improve

the business

number 11?

How are the industry specific. numbers?

Every type of business has a. peculiarity

and a particular Financial. number that can tell you about

strength of the business.

For example

in banking business important. metric to see is non-performing

assets called NPA, which means. bad loans, which means how much

percentage of loans given by. the bank have been defaulted.

And are not being paid.

The lesser, the NPA number, the. better.

It is for banks.

If there is an important. business related metric, you

must just look at it.

Number 12, what is the. company's outlook on profit?

Some companies will conduct. their Affairs.

So as to gain the greatest. profit, right now,

others will deliberately. curtail maximum immediate

profits to build up Goodwill. and thereby gaining greater

overall profits over a period. of years.

Amazon is the biggest example. of this for years.

Amazon offered products at much. Deep Discount in the market

price

paying money from their pocket. to the vendors to attract

customers

in the initial years.

This led Amazon take a hit on. the prophets, you will not

believe that for the first 17. quarters after the shares of

Amazon were listed.

It was running under losses.

Had Amazon wanted.

They could have sold Goods at. market price or just a little

less than the market price.

But to gain the online. customers.

They played this game of. delaying.

The monetization

had Amazon ran behind gaining. profits in the short term.

It is very evident that they. would have not been as

successful as they are today,

you are a long-term investor. and it is in your best interest.

If the owners vision of the. company is also long term,

number 13, Financial strength.

Phil is a great advocate of not. investing in companies which

are overburdened with did, what. is better, is the company with

me?

Negligible debt and a business. where its profits can take care

of its further expansion. without raising any money from

outside Microsoft, after. initial investment of 1994 has

actually never raised a single. dollar to grow their own

business.

All these years, it has been. growing on the past years profit.

That must be the company.

You must desire to invest in.

Number 14,

good relationship with investors

profit disappointments, shifts. in demand for This product

field, product launches Etc,. are the unavoidable reality for

even the most successful. companies,

the key is transparency.

The management team has to open. about such matters.

Companies that clam up our. companies to avoid number 15

last but not the least, the. business owners must have

unquestionable integrity.

The company's management team. is closest to the businesses

assets, then the stockholders,

assets to the best of the. abilities on behalf of the

stockholders.

There can be no discussion, the. idea must be placed in.

No, thanks pal, lesson number. two, when to buy despite the

company's growth potential, the. performance of the business

depends on few other factors. which are

economic cycle.

That is with the economy is. booming or in a recession,

the attitude of government

technological innovation

inflation and lat.

But not the least, the interest. rates at which banks give loans

to businesses.

Fisher says that it is humanly. impossible to accurately time

the market assessing.

All these factors at a. particular time

though.

These factors sound highly. economy-related.

But there is also a code which. goes, like if economists could

predict what stock market is. going to do,

they would have been the. richest people which is not the

case.

Once you find such a company. which satisfies Cause most of

the points in 15 Point checklist.

Fisher says, such a company is. a remarkable one.

Once you find a remarkable. company

where can only be two ways. about it

first, that it can be priced. expensively than other of its

peers.

And the reason for it is pretty. much because it is a remarkable

business

and the second that it is. priced fairly in your opinion,

or below, its fair value

in the latter case, Fisher says. that you must just buy as much

of sir.

Type of company as you can at. such a price.

And as the company does well. and grows as expected, you can

add more money to it.

However, if the stock price is. coated expensive, then you can

still invest a small amount and. wait to deploy rest of the

money.

Most of the times, every. business and investors Behavior,

go through cycle.

What seems expensive today?

Due to exuberance of investors?

May seem left out five year,. hence,

in that case after it.

Initial investing a part of. your Capital.

You can wait to buy the stock. at the price which seems

Justified to you for its value. and growth Prospect.

But you need to take this with. a pinch of salt because you

must have that kind of patience. to wait to buy the stock at a

reasonable price.

Potential companies that need. the 15 points of buying will

always regain the position and. Rise through downturns and

depression.

It is crucial to have patience. as companies will always come.

The solution to overcome. economic, downfalls lesson,

number three.

When to sell,

this is the most asked question. in an investing Community,

social lays out three scenarios. where it would be in best

interest of an investor to sell. a stock first.

When an investor realizes that. he has made a bad decision of

buying the stock.

It requires a great amount of. self control and self honesty

to admit that we made the wrong. judgment.

It is common to make a bad. decision as the the entire

process of buying a potential. stock is very complex

handling.

This situation is often. inhibited by individual ego, as

nobody likes to admit that they. were wrong,

selling bad Investments as. early as possible.

Minimizes once loss and opens. the opportunity to invest the

remaining funds

into an alternate outstanding. stock.

The second reason for an. investor should sell a stock is

when the company degrades over. time and fails to meet the 15

reasons for.

Which it was bought a potential. company can degrade as

management.

Changes over time.

For the industry as a whole. suffers the third reason and

investor should sell a stock is. when he finds a better

investment opportunity. switching to better stocks is

the best decision even with the. hassle that comes with it

before making such Investments,. which has

an investor must extensively. analyze the situation and

minimize risk related to. misjudgment lesson.

Number four,

the Dividends are overrated.

When a company distribute part. of the profit to its

stockholders, it is called. dividend a company, which is

not paying dividends is not. necessarily A Bad Company.

It might signify that the. company wants to set up a new

plant invest in a better. project, this will make a

company generate better profits. in the long run, a person who

needs current income should. invest in a dividend paying

stock.

However, a long-term investor. shouldn't be bothered about

dividends.

We as investors get carried. away by seeing huge In a

growing company will most. likely not paid dividends at

all for several years before. its price appreciation stops at

the end of the day.

The important factor is where. the capital can be employed in

order to provide the highest. value to the shareholders.

If suppose my channel is. monetized by YouTube, and I

start earning money from it.

Then either I can use that. money to pay myself from which

I can party with my friends, go. traveling, or what I can do is

Is

I can use the money to buy more. books on investing which I can

use to make more videos or use. that money to advertise my

YouTube channel in geographies,. where no one knows about me,

which will help me on higher. revenues and I can keep

repeating the process.

So, for this reason, paying. dividends to the stockholders,

may not be the best use of. money for a company lesson.

Number five,

the don'ts for investors.

Don't buy Young companies.

The young companies have no. experience.

The management is new

though, their aspirations are. big, but anyone who starts a

business has big aspirations.

These young companies may. become the next big thing, but

guessing for such a thing to. happen is gambling.

It is just like predicting. whether a newborn baby from

womb will win a National boxing. middle.

When he's 18,

you may get it right?

But that does not mean that the. inside is superior.

It just means that you were. lucky.

Don't quibble of sense and. quarters.

When you find a remarkable. stock is available at an

attractive price.

Don't wait for it to fall a. dollar or ten dollars more in

such a case many a times.

The stockmen never come to the. price level that you wanted it

to come and just for a couple. of dollars, you may miss the

chance of buying a remarkable. business who stock price made

then appreciate for a decayed.

Don't be afraid of buying in a. pessimistic.

Time

pessimistic times can lead to. Good, buying opportunities

investors sell of excessively. when a situation of worry

arrived, which in turn makes a. lot of Securities, undervalued.

These situations may be. recession situations of War,

terrorist attack, Etc.

Too much, not be afraid and by. wholeheartedly, don't

overstress diversification.

People in the investing field. are paranoid about

diversification.

The number of stocks in your. portfolio is immaterial.

If you do not know anything. about Out the business, rather

it is dangerous to invest in. business about which, you know,

nothing about any remarkable. business within themselves are.

Sufficiently Diversified.

They just don't sell one. product but have a diversified

For example, Amazon Amazon,. earns its Revenue, not just

from online shopping but also. by selling advertisement Space

by providing transportation. services, the even make

products for sale by the name. of brand amazonbasics.

They also A huge revenue from. the media platform, Amazon Prime.

So from far, it may look like. just one company,

but if you go closer remarkable,. businesses already have

diversification within their. businesses, there are actually

only a very few business would. take most of the categories of

15 Point checklist, Phil. recommends to own, not more

than 5 stocks with an. allocation of not more than 20%.

Each with all 5 stocks. belonging to companies in

different Industries.

He's however, if one of the. stock perform exceptionally and

becomes 40 percent of your. portfolio, then you must not

sell it to make it twenty. percent again, rather let it be

like that.

He says, never cut your flowers,. nurture them, let's have a

quick recap in order for. purchase of a company.

You have to dig deeper like a. detective and see if the stock

takes most of the points in. Fishers 15 Point checklist

which in Broad manner must have. a product with huge growth

potential higher.

Margins have long-term outlook. on business

competitive and honest. management.

Once you find a company that. satisfies a 15 Point checklist

and available at a fair or. cheap price,

you must not wait to buy as. much as you can.

If it is available at expensive. price, you must still by a

small quantity and wait for it. to be available at a lesser

price in.

Future Fisher says that it is. humanly impossible to

accurately time.

The market.

Assessing all the economic. factors at a particular time.

A recession is a the best time. to buy these businesses because

most of the stocks are cheap. during this time.

You must sell a stock.

If you realize you made a. mistake in assessing the stock

in the 15-point checklist or. made a bad decision in a hurry

or over the time.

The company has degraded and. fails to qualify most of the

points in a checklist, which it. once did.

And last, but not the least.

If you find a better investment. opportunity, people pay too

much attention to the dividend. payment of a company, a really

great management will Is find. ways to invest in businesses,

develop a new product, which,. in future increases, the

profits of the company,

handling of prophets in the. hands of stockholders, is not

the best utilization of money. according to Fisher as an

investor you must avoid young. companies, don't be paranoid to

buy a great businesses at a. particular price.

If you get it in range

that you think is cheap by in. loads of $1.00 here.

And there will make no. difference.

Don't be afraid of buying in a. pessimistic times.

Pessimistic times can lead to a. good buying opportunities,

investor sale of excessively,. when a situation of worry

arrives, don't overstress. diversification.

If you do not know anything. about the business, Phil

recommends to own, not more. than 5 stocks with an

allocation of non more than 20. percent each.

And if any of it grows

more than 20%, Then don't. reduce the size to make it

twenty percent again.

Rather let it be like that. because never cut your flour.

Nurture them.

That's it.

Guys, if you like the video,. please, like, share and

subscribe.

You can also check out my past. video in which I have covered

the summary from the book.

How to avoid laws and on. consistently in stock market.

I will come again next week. with a summary

of another book on investing of. Finance

until then.

Cheers, guys.