Monday, April 30, 2007

IF - Rudyard Kipling


If you can keep your head when all about you Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you But make allowance for their doubting too,
If you can wait and not be tired by waiting, Or being lied about, don't deal in lies, Or being hated, don't give way to hating, And yet don't look too good, nor talk too wise:
If you can dream--and not make dreams your master,
If you can think--and not make thoughts your aim;
If you can meet with Triumph and DisasterAnd treat those two impostors just the same;
If you can bear to hear the truth you've spoken Twisted by knaves to make a trap for fools, Or watch the things you gave your life to, broken, And stoop and build 'em up with worn-out tools:
If you can make one heap of all your winnings And risk it all on one turn of pitch-and-toss, And lose, and start again at your beginnings And never breath a word about your loss;
If you can force your heart and nerve and sinew To serve your turn long after they are gone, And so hold on when there is nothing in you Except the Will which says to them: "Hold on!"
If you can talk with crowds and keep your virtue, Or walk with kings--nor lose the common touch,
If neither foes nor loving friends can hurt you; If all men count with you, but none too much,
If you can fill the unforgiving minute With sixty seconds' worth of distance run, Yours is the Earth and everything that's in it, And--which is more--you'll be a Man, my son!

--Rudyard Kipling

Phil Fisher on Investing

15 Points to Look for in a Common Stock
  1. Does the company have products or services with sufficient market potential to make possible a sizeable increase in sales for at least several years?
  2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?
  3. How effective are the company's research and development efforts in relation to its size?
  4. Does the company have an above-average sales organization?
  5. Does the company have a worthwhile profit margin?
  6. What is the company doing to maintain or improve profit margins?
  7. Does the company have outstanding labor and personnel relations?
  8. Does the company have outstanding executive relations?
  9. Does the company have depth to its management?
  10. How good are the company's cost analysis and accounting controls?
  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 will be in relation to its competition?
  12. Does the company have a short-range or long-range outlook in regard to profits?
  13. In the foreseeable future, will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing stockholders' benefit from this anticipated growth?
  14. Does the management talk freely to investors about its affairs when things are going well but "clam up" when troubles or disappointments occur?
  15. Does the company have a management of unquestionable integrity?

Five Don'ts for Investors

  1. Don't buy into promotional companies.
  2. Don't ignore a good stock just because it is traded "over-the-counter."
  3. Don't buy a stock just because you like the "tone" of its annual report.
  4. Don't assume that the high price at which a stock may be selling in relation to its earnings is necessarily an indication that further growth in those earnings has largely been already discounted in the price.
  5. Don't quibble over eighths and quarters.