8/16/2019 Investing Checklist
1/3
Phil Fisher Investing Checklist
1. Does the company have the products or services with sufcient
market
potential to make possible a sizable increase in sales or at
least several
years?2. Does the management have a determination to continue to
develop products
or processes that will still urther increase total sales
potentials when the
growth potentials o currently attractive product lines have
largely been
exploited?. !ow e"ective are the company#s research and
development e"orts in relation
to its size?$. Does the company have an above average sales
organization?%. Does the company have a worthwhile pro&t
margin?'. (hat is the company doing to maintain or improve
pro&t margins?). Does the company have outstanding labor and
personnel relations?*. Does the company have outstanding executive
relations?+. Does the company have depth to its management?1,.!ow
good are the company#s cost analysis and accounting controls?11.-re
there other aspects o the business somewhat peculiar to the
industry
involved which will give the investor important clues as to how
outstanding
the company may be in relation to its competition?12.Does the
company have a short range or long range outlook in regards to
pro&ts?1./n the oreseeable uture will the growth o the
company re0uire sufcient
e0uity &nancing so that the larger number o shares then
outstanding will
largely cancel the existing stockholders# bene&t rom this
anticipated growth?1$.Does the management talk reely to investors
about its a"airs when things
are going well but clam up when troubles and disappointments
occur?1%.Does the company have a management o un0uestionable
integrity?
1. Do you understand the business?a. (hat does it do?b. Drivers
o pro&tability?
2. -re there any li0uidity concerns?a. Debt maturitiesb.
3hort4term unding
. /s management appropriately incentivized?
