Phil Fischer's Checklist

  • Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
  • Does management have determination to continue to develop products or processes that will still further increase total sales potentials when the current growth potential of current product lines have been exhausted?
  • How effective are the company's R&D efforts relative to its size?
  • Does the company have an above-average sales organization?
  • Does the company have a worthwhile profit margin?
  • What is the company doing to maintain and improve profit margins?
  • Does the company have outstanding labor relations?
  • Does the company have outstanding executive relations?
  • Does the company have depth to its management?
  • How good are the company's cost analysis and accounting controls?
  • Are there other aspects of the business (unique to the industry) which will give investors the clue that this company is outstanding compared to current competition?
  • Does the company have a long-range or short-range view of profit?
  • In the foreseeable future, will the growth of the company require significant equity financing so that the large number of shares then outstanding will largely cancel the existing stockholders' benefit from this anticipated growth?