How good are the companys cost analysis and accounting controls?
Well, this was the 1950s when Fisher wrote this. However, it is as true today as it was then. Two things must be working for the investors – 1. the company ought to know the cost of what it is selling 2. the basis to calculate the cost (accounting) should be reasonable and honest! 11. Are there other aspects of 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? Fisher calls this the “catch-all” of all other points. This difference maybe in terms of a patent or a distinction that others do not possess – say like Coca Cola has its brand. Now, Warren Buffett is known to have learnt a lot from Phil Fisher. Perhaps this is one point he has practiced the best. He usually invests in companies that have a clear lead on its competitors in terms of its distinction and its sales activity is almost like a “toll-gate” model. 12. Does the company have a short range or long ran
