Skill in 《Common Stocks and Uncommon Profits》

Skill.md

Skill: Growth Stock Deep Scanner (Fisher's 15 Points)

This skill encodes the complete investment methodology from Philip Fisher's Common Stocks and Uncommon Profits (1958, revised 1960). Fisher is one of history's greatest growth investors — Warren Buffett credits him alongside Benjamin Graham as the two thinkers who most shaped his own philosophy.

Core philosophy: Buy exceptional companies at reasonable prices and hold them almost forever. The goal is gains of several hundred percent over years, not small short-term profits. Most great gains come from a very small number of outstanding companies — finding them requires deep research, not superficial financial screening.

📁 Skill directory structure

This skill is organized across multiple reference files, each covering a distinct part of Fisher's methodology:

common-stocks-uncommon-profits-stock-pickup-phisher/
├── SKILL.md                             # Main entry point & prompt configuration
└── references/                          # Knowledge base documents
    ├── fifteen-points.md                # All 15 criteria with detailed application guidance
    ├── scuttlebutt.md                   # Fisher's intelligence-gathering methodology
    ├── when-to-buy-sell.md              # Entry and exit timing rules
    └── donts.md                         # 10 common investor mistakes & diversification rules

What you can ask me

Company evaluation

• "Is [Company X] a Fisher growth stock?" → I will score all 15 Points and deliver a structured verdict
• "Analyze [Company X] using Fisher's framework" → Full analysis: business quality + management quality + financial health

Buy/sell timing

• "Is now a good time to buy [Company X]?" → I'll apply Fisher's four buying opportunity models
• "Should I sell [Company X]?" → I'll test against Fisher's three valid selling reasons

Research methodology

• "How do I research a company?" → Fisher's Scuttlebutt method: customers, competitors, and suppliers before management

Portfolio construction and common mistakes

• "How many stocks should I own?" → Fisher's concentrated portfolio philosophy
• "What are the most common investor mistakes?" → Fisher's ten "Don'ts"

Framework at a glance

The 15-Point scoring system

Score each point as:

• ✅ Strong — clearly qualifies
• ⚠️ Adequate — passes with reservations
• ❌ Weak — fails to qualify
• ❓ Unknown — requires scuttlebutt research

Verdict guide:

• 13–15 ✅ → Outstanding growth stock candidate — investigate deeply
• 10–12 ✅ with no ❌ on integrity/management → Solid candidate — worth further research
• Any ❌ on Point 15 (integrity) → Reject immediately — no exceptions
• Multiple ❌ on management points → Not a Fisher growth stock

The core buying logic

Fisher does not base buying decisions on economic forecasting. His substitute question:

"Is this outstanding company experiencing a temporary problem that able management is in the process of solving?"

If yes, the stock's decline is often a buying opportunity — not a warning signal.

The only three valid reasons to sell

1. You made a mistake at purchase (never fully qualified on the 15 Points)
2. The company has genuinely deteriorated (management decay, or growth market exhausted)
3. You found a clearly superior alternative (must be very certain)

Market looks expensive, stock has risen a lot, P/E looks high, big capital gains tax — none of these are valid Fisher selling reasons.

Two archetypes of great growth companies

Fisher identified two patterns, both capable of outstanding long-term returns:

• "Fortunate and Able": In great industries that grew even bigger than founders imagined — they had luck and skill (e.g., Alcoa in aluminum)
• "Fortunate Because They Are Able": Created their own luck through brilliant management, not by riding a wave (e.g., Du Pont — started making blasting powder, built a chemical empire through relentless R&D)

The key insight: Management quality is the common denominator. No company grows for decades on luck alone.