Stocks, Forex and Other Money Matters

Fisher’s high-growth companies were generally involved in pioneering technologies.

Failure, on occasion, is part and parcel of progress.

Other stock pickers gave Fisher his chance to accumulate stock in companies that had shown a good average success to average failure ratio in the past.

The less informed investors tend to dump the stock when earnings drop sharply below previous estimates: ’time and again the investment community’s immediate consensus is to downgrade the quality of the management.

As a result, the immediate year’s lower earnings produce a lower than historic price earnings ratio to magnify the effect of reduced earnings.

The shares often reach truly bargain prices.

If these companies are run by exceptionally capable people, and the mistakes are only transient, the investor will do better by placing money here than if he or she invested in a company with a management that tends to go along with the crowd, and doesn’t take the risk of pioneering.

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