Verdict in one line
The book that taught Warren Buffett the growth half of his philosophy. Fisher pioneered the idea of buying a few outstanding companies and holding them for years — and the "scuttlebutt" method of deep research. Timeless principles, but genuinely hard for individual investors to apply today.
What it's about
Philip Fisher, one of the fathers of growth investing, argues that the path to great returns is buying a small number of exceptional, well-managed growth companies and holding them for the very long term. Published in 1958, the book lays out how to identify such companies through qualitative research — talking to customers, competitors, suppliers, and employees. Warren Buffett famously said he is "85% Graham and 15% Fisher," and Fisher is the Fisher.
Key ideas
The scuttlebutt method
Gather a mosaic of information by talking to a company’s customers, competitors, suppliers, and former employees. The "business grapevine" reveals quality that financial statements can’t.
The fifteen points
Fisher’s checklist for evaluating a company — covering products with long runways, strong R&D, sales organization, profit margins, labor relations, and crucially, management integrity.
Focus on management quality
Great businesses are run by honest, capable people with a long-term orientation. Integrity is non-negotiable — never invest with managers you can’t trust.
Buy outstanding companies and hold
The ideal holding period is "almost forever." Selling a wonderful, growing business for short-term reasons is usually a mistake.
A concentrated, not diversified, approach
Fisher favored owning a handful of deeply researched companies over wide diversification — the opposite of the index approach.
What we loved
The scuttlebutt research framework is genuinely original and still used by professionals; the relentless focus on management quality and moats; the long-term, low-turnover mindset; its direct influence on Buffett and modern quality investing.
What to watch out for
The scuttlebutt method requires time, access, and skill most individual investors simply don't have; the 1950s prose is dry and occasionally meandering; concentration is risky for non-professionals; in an era of efficient markets and index funds, applying Fisher literally is hard. The principles inform how to think about quality more than they give a usable retail playbook.
Who should read it / who can skip it
Read it if you want to understand growth and quality investing at its source, or you're an active investor researching individual companies. Skip it if you plan to invest passively through index funds — the philosophy is fascinating but you won't use the methods.
How it applies today
Most individual investors can't run scuttlebutt research, but Fisher's lesson — quality and management matter, and great businesses reward patience — lives on in quality-factor ETFs and in simply holding broad market funds for decades. See How Stocks Work, Building a Portfolio, and the ETF Screener.
Where to get it
Common Stocks and Uncommon Profits is available in print and ebook, often bundled with Fisher's later essays. Zeebrain does not yet earn affiliate commissions on book purchases — see the disclosure below.
Research quality companies and funds
Apply Fisher's focus on quality with data-driven tools for screening and comparing funds.
The bottom line
Fisher gave investing its growth gene. Before him, the Graham school treated stocks as cheap cigar-butts to be discarded; Fisher showed that a truly great company, bought at a fair price and held for decades, can compound into something extraordinary. The catch is that his methods demand professional-grade research most of us will never do. Read it to upgrade how you judge business quality — then accept that, for most people, owning that quality through a low-cost fund is the realistic path.
Frequently asked questions
What is the scuttlebutt method?+
Scuttlebutt is Philip Fisher’s research approach of building a picture of a company by talking to the people around it — customers, competitors, suppliers, and former employees. The idea is that this "business grapevine" reveals the qualitative strengths and weaknesses that financial statements alone cannot show.
Did Common Stocks and Uncommon Profits influence Warren Buffett?+
Yes, significantly. Buffett has described himself as "85% Graham and 15% Fisher," crediting Fisher with the growth-and-quality half of his philosophy. Fisher taught him to look beyond cheap statistics toward outstanding businesses with durable competitive advantages and excellent management.
Can individual investors actually use Fisher’s methods today?+
Only partially. The scuttlebutt method requires time, industry access, and analytical skill that most individual investors lack, and modern markets are far more efficient than in 1958. The enduring value is in how Fisher teaches you to judge business quality and management, even if you ultimately invest through funds.
Is Common Stocks and Uncommon Profits worth reading for index investors?+
It is interesting but not essential for pure index investors. Its methods are built for active stock selection, which index investors do not do. If your plan is to buy low-cost index funds, the book offers historical and philosophical insight rather than a strategy you will use.