Common Stocks and Uncommon Profits and Other Writings

There are in general two approaches to accumulating wealth in the stock market. One is to time the market, buying stocks when they are cheap, and selling when they are expensive. The other is to find outstanding companies and hold them for the long term. Fisher prefers the latter. He recommends that investors should focus on finding stocks that have the highest profit compared to risk. The public often misinterprets this as meaning stocks that are the most undervalued, rather than those with prospects for the highest growth for the longest duration. High growth over many years outweighs the advantages… show more.