Common Stocks and Uncommon Profits

Reviewed by Diario de un Inversor · UpdatedJune 13, 2026

Our review

Philip Fisher published this book in 1958 and its standing as a reference text for growth company analysis has not diminished. The foundational thesis is that the price paid for a share matters less than the quality of the business it represents — provided that quality is exceptional and sustainable. To identify it, Fisher developed the «scuttlebutt» method: speaking with employees, customers, suppliers, and competitors of a company before buying its shares, building a qualitative portrait that financial statements cannot capture. Fisher's fifteen points define what characteristics a company must have to merit indefinite portfolio inclusion: sustained innovation capacity, expanding profit margins, solid labor relations, and management that is honest with shareholders. Management honesty carries for Fisher an equivalent moral and practical weight. Warren Buffett described his own philosophy as «85% Graham, 15% Fisher» — though many analysts argue the proportion reversed over time. The book has technically dense passages and assumes some prior familiarity with financial statements.

Key takeaways

• The exceptional quality of a business can justify holding it for decades, superseding the logic of short-term price appreciation.
• The scuttlebutt method — first-hand information from employees, customers, and competitors — reveals dimensions that balance sheets cannot show.
• Management honesty with shareholders is a selection criterion as important as margins or revenue growth.
• Excessive diversification dilutes returns: Fisher advocated concentrated portfolios of the best ideas, not broad collections of mediocre positions.

Fact

Published in 1958, Warren Buffett explicitly cited Philip Fisher as one of his two primary intellectual influences, alongside Benjamin Graham.