Philip A. Fisher
Warren Buffett credits this framework for teaching him that it is better to buy a wonderful business at a fair price than a fair business at a wonderful price.
The scuttlebutt method, which involves speaking directly to customers, suppliers, competitors, and former employees, provides critical qualitative insights that financial statements cannot reveal.
A prospective investment must possess high-integrity management, exceptional labor relations, and a relentless commitment to research and development to sustain above-average profit margins.
Investors should avoid the trap of over-diversification and instead concentrate their capital into a small handful of deeply understood, thoroughly researched businesses.