Common Practice Too Often Replaces Common Sense

This week a prospective business seller said he didn’t run his business according to traditional cost accounting methods. (I had asked about gross margins to get a sense of gross profit. This is an important indicator to me because it often reveals intellectual property and annual growth ceiling.) He gently said, “that’s just not how Read more about Common Practice Too Often Replaces Common Sense[…]

Notes & Commentary on “Common Stocks & Uncommon Profits” by Phil A Fisher (with applications to private companies)

I recently re-read Phil A Fisher’s classic, “Common Stocks and Uncommon Profits.” After first speed-reading a book, I return to those I think worthwhile, and the second time through take notes. On subsequent times I refine my notes. Below are my refined notes after several re-reads. Most of the words are the authors. Any errors Read more about Notes & Commentary on “Common Stocks & Uncommon Profits” by Phil A Fisher (with applications to private companies)[…]

Low Opportunity Cost Investing

Opportunity cost is one of those concepts that slinks away from you when you’re not looking. For that reason, I start with the definition. Opportunity Cost – “the loss of potential gain from other alternatives when one alternative is chosen” How can the opportunity cost be zero? When you select your best alternative you sacrifice Read more about Low Opportunity Cost Investing[…]