It’s just over ten years since Phil Fisher died. But it’s a lot longer before this giant of the global investment industry is forgotten. His classic book Common Stocks and Uncommon Profits, is right up there as a must-read alongside Benjamin Graham‘s The Intelligent Investor. A great addition to any Christmas stocking.
Fisher introduced us to the importance of “scuttlebutt” – a term borrowed from the fresh water barrel around which sailors would gather to swap rumours and gossip. Such informal communication from employees and competitors can be an important guide when weighing up the investment appeal of a company.
Sometimes scuttlebutt comes to us in unusual ways. I don’t own any Pick n Pay shares, but most investment analysts are impressed with the company’s imported CEO Richard Brasher. He might be hitting the right notes at analyst presentations, but the scuttlebutt isn’t supportive.
At the company’s Rosebank Mall yesterday, I couldn’t help noticing how our cashier was battling to cope with a broken conveyor belt at her till.Ā When asked about it, she launched into an animated description of how “we are suffering”, that the mechanism had been broken for three months, but management cares less. Perhaps it’s an isolated example. But if the executives running a people-driven retailer are unable to get hygiene factors right, you have to wonder how they’ll effect the kind of turnaround Pick n Pay keeps promising.
From Biznews community member Alan Bearman
Thanks for the very interesting and partially humorous email this morning about certain supermarket. I have emailed the chairman of the company and said that I hoped that he and the CEO were rewarded by being allowed to shop at VC point recently renovated store. I then proceeded to give them a storecard assessment of performance and allocated 0/10 for management, staff helpfulness, and staff training. Interesting products and the kosher department.Ā I said that it was not fair that a regular visit to the store was not part of their overall remuneration. Unfortunately it is convenient for us to go there because it is literally one minute from where we live.
From Biznews community member Maurice
Interesting observation from you as the roots of a tree are reflected in the quality of fruit it produces.
