Philip Fisher, founder of the growth investing school of thought, was aware of the importance of how a company’s management handles its financial affairs; only when this is done well and accurately is management in a strong position.
Those companies with above-average financial talent have several significant advantages:
Difficult to discover It’s difficult for us investors to uncover inefficiency in these areas. As outsiders we cannot expect to obtain detailed figures, but by talking to customers, suppliers, employees etc. we can start to build a picture of competence over time. Consistence in profit margins and savings Fisher looked for companies with a consistent history of high profit margins, as these are likely (but not certain) to give an indication of future performance. Some companies have a high degree of pricing power by which they are able to maintain their profit margin. At the same time, it is just a....To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
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Glen ArnoldI'm a full-time investor running my portfolio. I invest other people's money into the same shares I hold under the Managed Portfolio Service at Henry Spain. Each of my client's individual accounts is invested in roughly the same proportions as my "Model Portfolio" for which we charge 1.2% + VAT per year. If you would like to join us contact Jackie.Tran@henryspain.co.uk investing is about making the right decisions, not many decisions.
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