I have taken a few wooden nickels during my investment career, although when I bought them I thought they were solid gold. As it turns out the gold was merely a thin veneer which covered a piece of rotting wood. Most of my "wooden nickels" were a result of not paying attention to Philip Fisher's "Ten Don'ts For Investors."
The more I read about investing the more I appreciate the philosophy and writings of Philip Fisher. His influence upon modern investment thought is extremely pervasive; many of the concepts that he wrote about five decades ago have become nearly ubiquitous among value investors. Bits and pieces of his philosophy appear in almost every synopsis or profile of every value investor or fund manager who is worth his salt.
Today's article deals with the famous don'ts that Fisher explained in precise detail in his classic work, "Common Stocks and Uncommon Profits." I will follow the don'ts with some personal analysis.
-- by John Emerson