Reading an annual report is probably your most efficient way to get the scoop about a company directly from management. Starting with competitors is an obvious part of analyzing a business, but you might be surprised at how easy it is to overlook.Īs we try to apply scuttlebutt investing to our research process as average investors, it should go without saying that we should try to read annual reports, and lots of them.
I guess there’s nothing new under the sun. They comprise Porter’s “five forces” we can apply this to the scuttlebutt investing idea because it was also defined by Fisher as our “representative cross-section”. Most businesses have the following:Ī company is intimately involved with each of these major players, as they all can directly affect the profitability and success of a business. Porter also referred to it as “five forces” let’s summarize the idea.Īlmost every business is part of a larger ecosystem. This idea of a representative cross-section of a company is also called “the value chain” by the very well-respected business school professor Michael Porter, and it is key to truly understanding a business. The idea of collecting multiple vantage points through the representative cross-section of a company is one of the simplest yet most powerful ideas on effective research for investing. It is amazing what an accurate picture of the relative points of strength and weakness of each company in an industry can be obtained from a representative cross-section of the opinions of those who in one way or another are concerned with any particular company. The business “grapevine” is a remarkable thing. In particular I want to highlight the following section of the chapter: In essence, Fisher explains the process of scuttlebutt as talking to as many people as you can about a company that you are interested in a potential investment for. In the book, Fisher spends 3 short pages outlining “What ‘Scuttlebutt’ Can Do”. How Only Scuttlebutt Paints the True Picture of a Business Let’s get started on this simple but powerful method for finding great stock market opportunities today and over the rest of your life. Scuttlebutt Through Competitor Analysis.Scuttlebutt: The True Picture of a Business.And I’ll show you how even the average investor can apply it, even if you don’t have access to top managements in the companies you want to invest in. Today, I will attempt to show you why you should use a scuttlebutt investing approach to researching and picking stocks for your portfolio. Even Warren Buffett once proclaimed his investment approach as “15% Fisher”. Many very successful investors have credited Phil Fisher as the inspiration of their success. This book was one of the greatest investment classics of all-time, and was one I have included as a top 8 books on investing for many years.
“Scuttlebutt” was a word invented by famed investor Philip Fisher in his bestselling Common Stocks and Uncommon Profits. Today, however, I think aspects of Philip Fisher’s chapter on “scuttlebutt” should be applied to every single stock you ever research.įirst let’s define what a scuttlebutt investor would do. It’s topped off with pickled ears, crisp shredded principles, finely chopped marriage certificates, and Earth “cheese” for a 100% “meat” burger with a taste like no other.I’ll admit that I didn’t see the power of the scuttlebutt investing idea the first time I read it, probably seven years ago or so. That’s right: we do not discriminate against veterans of the SS, the Vietcong or the Wagner Group ! Any veteran of any war may dine with a simple proof of enlistment.įor Breakfast, options include Mystery Meat McGriddle ®, Sad Breakfast ® with Coldcakes, Man Down Hash Browns, and the all-new Bacon, Egg, and Non-Transferable Skills McMuffin ®! Diners may also enjoy both caffeinated and decaf McCafé ® Americano, which is served with Sweet n’ Low and shelf-stable non-dairy creamer.įor lunch and dinner, our veterans may enjoy the flagship burger on the menu, the McPTSD ®! Face-melting taste perfection begins with two 100% pure “meat” patties sandwiched between a castor bean bun. All veterans, no matter what nationality, may enjoy it. CHICAGO, Ill., J/DBNewswire/ - Today, McDonald’s is proud to unveil its Warfighter Honor Menu, available now through Veterans Day at all participating locations.
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