Some self styled Value Investors who pride at having finished last in a class of 248 students keep sending free emails. This quote is from there:

"The investor cannot pinpoint just how much per share a particular company will earn two years from now. As a matter of fact, the company's top management cannot. Under these circumstances, how can anyone say with even moderate precision just what is overpriced for an outstanding company with an unusually rapid growth rate? If the growth rate is so good that in another ten years the company might well have quadrupled, is it really of such great concern whether at the moment the stock might or might not be 35% overpriced? That which really matters is not to disturb a position that is going to be worth a great deal more later." - Philip Fisher

Think about it Fisher talks of quadrupling in 10 years that is a 15% CAGR and I doubt how many people would be satisfied with a 15% CAGR return in foresight.

That is  because yeh dil always maange more!!!

Originally posted by basant Some self styled Value Investors who pride at having finished last in a class of 248 students keep sending free emails. This quote is from there:<font style="font-family: arial,serif; font-size: 11pt; line-height: 1.5;"> <font style="font-family: arial,serif; font-size: 11pt; line-height: 1.5;">"The investor cannot pinpoint just how much per share a particular company will earn two years from now. As a matter of fact, the company's top management cannot. Under these circumstances, how can anyone say with even moderate precision just what is overpriced for an outstanding company with an unusually rapid growth rate? If the growth rate is so good that in another ten years the company might well have quadrupled, is it really of such great concern whether at the moment the stock might or might not be 35% overpriced? That which really matters is not to disturb a position that is going to be worth a great deal more later." - Philip Fisher Think about it Fisher talks of quadrupling in 10 years that is a 15% CAGR and I doubt how many people would be satisfied with a 15% CAGR return in foresight.That is  because yeh dil always maange more!!!

I think we should keep the countries in context. If the CPI inflation in the US is 2-3% then 15% per year is a good return compared to 20% per year in India. I believe the CPI inflation in India is currently over 10%.

Originally posted by deepinsight Philip Fisher's emphasis was on a) Finding outstanding companies b) holding on and on and on to capture the compounding magic in the underlying company.    The % is the result of the growth rate in the underlying business.

He has written a book : Developing an investment philosophy. Must read in my list.

What to Buy-The fifteen Points to look for in a Common Stock
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.
2. Does the management have a determination to continue to develop products or
processes that will further increase total sales potentials when the growth
potentials of the current attractive product lines have largely been exploited.
3. How effective are the companies research and development efforts in relation to it
size?
4. Does the company have an above average sales organization?
5. Does the company have a worthwhile profit margin?
6. What is the company doing to maintain or improve profit margins?
7. Does the company have outstanding labor and personnel relations?
8. Does the company have outstanding executive relations?
9. Does the company have depth to its management?
10. How good are the company's cost analysis and accounting controls?
11. Are there other aspects of the business, somewhat peculiar to the industry
involved, which will give the investor important clues as to how outstanding the
company may be in relation to its competition?
12. Does the company have a short-range or long-range outlook in regard to profits?
13. In the foreseeable future will the growth of the company require sufficient equity
financing so that the larger number of shares then outstanding will largely cancel
the existing stockholders' benefit from this anticipated growth?
14. Does the management talk freely to investors about its affairs when things are
going well but "clam up" when troubles and disappointments occur?
15. Does the company have a management of unquestionable integrity?