I just finished, Common Stocks and Uncommon profits by Phillip Fisher. He is the father of highly successful money manager and Forbes 400 member Ken Fisher.
When it comes to equity investment selection he knows his stuff. Father and son are different in style (growth vs. value opportunity, but both interesting.
The book by Phillip is good for the investor looking into a technique he used which is simple, straightforward and involves hard work.
Warning: If you are an amateur (someone who doesn't know the difference between a capital and operating lease) buy an index mutual fund and sit back and relax. Don't trade or invest.
For those of you who want to invest consider the following. Assume you will put in weeks to months worth of work to select a company to invest in and then only buy what you believe you would be willing to hold onto for 5 years or more. Only pick a company that you trust and know so much about that you don't need constant quotes to make you feel comfortable.
Fisher has a basic and sound approach, buy good companies and hold onto them for as long as you think they are good companies. Don't time the market, don't get impatient. He asked his investors to give him 3 years for his "ideas" to work out. 
Here is a diagram I made highlighting his approach. The numbers and diagram are my interpretations of single security selection. There is a lot more to it of course. Start at the bottom.
- The basic ideas is to start with basic screening to find firms with growth, earnings and price that meet your criteria,
- pursue what Fisher calls the "scuttlebut" or knowledge in the market place of vendors, suppliers and customers about the company.
- After that meet the management to assess integrity and clarity of vision.
This leaves about 1 of 600 of the original companies as suitable for investment. I like the Fisher's discussions and emphasis on management integrity, something Buffet spoke of. Honesty is vital as they relationship an investor has with a firm is long term. The more I learn about management and successful organizational culture the more I appreciate how important communication and integrity are.
Many of the skills required for discovering "scuttlebut" and assessing management are social skills, similar to those learned in field anthropology. I look forward to using them. If you are going to be an investor read Fisher and Graham. Be slow to select and then hold for the long term.
