It's been more than 60 years since Philip Fisher wrote the investment classic in "Common Stocks & Uncommon Profits".
The book is famous for the 15 questions which one must ask before investing in any company.
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These are the questions which help us in determining the "quality" of a business.
Warren Buffett has time and again said that he is 85% Graham and 15% Fisher.
Let's have a look at these 15 questions.
P.S.: Stocks listed in this thread are not to be taken as recos.
1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
The important point which you must note here is that you must not just look at the size of the company.
You must also look at the opportunity size of the market in which the company exists.
Let's take the case of HDFC Bank. Although it is a huge bank, but it controls just 9% of the total credit market in India, suggesting an enormous opportunity for it to capture.
2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?
