In 1958, a young investor sat in his small office in San Francisco, clutching a copy of Common Stocks and Uncommon Profits by Philip Fisher. His friends were immersed in Benjamin Graham’s works, while he wanted to understand how businesses grow, not just how they’re priced. Fast-forward a few decades, and many successful investors, including Warren Buffett, have cited Fisher’s book as transformational in shaping their philosophy.
On the other hand, imagine a first-year MBA student in 2009 struggling to decode a balance sheet until he stumbled upon Thomas Ittelson’s Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports. Suddenly, numbers began to tell a story, making financial literacy accessible to anyone without an accounting background. These two books serve different, yet complementary purposes—one teaches how to identify extraordinary businesses, the other how to read the very reports that reveal their health.
For readers who want to know Common Stocks and Uncommon Profits vs Financial Statements: An Honest Comparison, this article will provide a deep dive into both books. At Indiainvesthub, we guide investors, students, and professionals in choosing resources that truly add value to their long-term growth. By the end, you’ll not only understand what each book offers but also which one aligns best with your needs.
1) Common Stocks and Uncommon Profits by Philip Fisher: An Overview
Philip Fisher’s Common Stocks and Uncommon Profits has been in print for more than six decades and is often regarded as one of the most influential investing books ever written. Fisher’s central philosophy revolves around the idea that great returns come from owning great companies for the long term. He emphasizes qualitative research—understanding management, company culture, and innovation—rather than focusing solely on numbers.
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Price Range in India: ₹1,299 – ₹1,499
Key Features:
- The 15 Points Framework: Fisher outlines 15 key criteria to evaluate a company, ranging from its R&D capabilities to its honesty of management.
- Focus on Growth Stocks: Unlike Graham’s focus on undervalued stocks, Fisher highlights companies with strong growth potential.
- Scuttlebutt Technique: Encourages investors to gather information directly from suppliers, employees, and competitors to understand a company better.
- Long-Term Investment Horizon: Advocates holding onto businesses as long as they maintain their competitive edge.
Pros:
- Timeless principles that remain relevant in modern markets.
- Offers a qualitative approach often missed in quantitative-heavy analysis.
- Widely endorsed by successful investors like Warren Buffett.
Cons:
- Requires patience and a long-term outlook, which may not suit short-term traders.
- Limited focus on financial statement analysis.
- Some examples feel outdated given the book’s original publication date.
Real Customer Experiences:
👉“This book offers more knowledge than an investor could gain from 20 years of practice. It’s a true treasure for knowledge seekers.”
👉“The writer of the book has beautifully explained all aspects of the best companies from an investing point of view. All chapters are significant for gaining deep knowledge.”
👉“Successful investing requires following certain rules with discipline and the right mindset throughout the investment journey. This is a great book by Philip A. Fisher.”
2) Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports by Thomas Ittelson: An Overview
Thomas Ittelson’s Financial Statements serves as a clear and approachable guide to decoding balance sheets, income statements, and cash flow statements. Unlike dense accounting textbooks, this book uses simple language, visuals, and real-world examples to make financial reporting understandable to non-accountants, entrepreneurs, and investors.
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Price Range in India: ₹1,696 – ₹1,896
Key Features:
- Step-by-Step Explanations: Breaks down every element of the three core financial statements.
- User-Friendly Language: Avoids heavy jargon, making it accessible to all readers.
- Practical Focus: Teaches not only how to read but also how to create financial statements.
- Comprehensive Coverage: Includes insights into GAAP standards and business structures.
Pros:
- Perfect for beginners with no financial background.
- Practical approach with clear examples.
- Helps entrepreneurs and small business owners manage finances effectively.
Cons:
- Focuses heavily on basics, less suitable for advanced finance professionals.
- Not an investment-specific book—it’s about financial literacy.
- Examples can feel too simplistic for seasoned readers.
Real Customer Experiences:
👉“It’s a book that explains everything in a simple way. It starts with the basics and gradually breaks down the details. An excellent choice for those who know absolutely nothing about accounting or finance. It breaks down each transaction step by step, though some may find it confusing to see the “repeated sheets.”
👉“As a non-native English-speaking accountant, this book was very useful for revisiting the basics and refreshing my knowledge of all financial statements. It’s a great book to improve vocabulary, and the information is very easy to read.”
👉”The book guides you with clear examples for each new term introduced. I enjoyed learning from him a lot.”
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Common Stocks and Uncommon Profits vs Financial Statements – Comparison Table
Feature | Common Stocks and Uncommon Profits | Financial Statements |
|---|---|---|
Image |  |  |
Author | Philip A. Fisher | Thomas R. Ittelson |
Focus | Investment philosophy, growth stocks, qualitative research | Understanding and creating financial statements |
Best For | Long-term investors, growth stock enthusiasts | Entrepreneurs, students, non-finance professionals |
Approach | Qualitative analysis, scuttlebutt, management evaluation | Step-by-step financial literacy, accounting basics |
Pros | Timeless investing wisdom, endorsed by legends | Beginner-friendly, practical, clear |
Cons | Abstract, requires patience, limited accounting detail | Not investment-focused, too basic for experts |
Customer Feedback | “Life-changing for investors” | “Perfect for financial literacy beginners” |
Ratings | 4.3 Out of 5 | 4.6 Out of 5 |
Buy |
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FAQs – Common Stocks and Uncommon Profits vs Financial Statements
Q1: Can I read both books together?
👉Yes, in fact, they complement each other—Fisher helps you identify great companies, while Ittelson helps you read the numbers behind them.
Q2: Which book is better for beginners?
👉Financial Statements is more beginner-friendly as it breaks down financial basics. Fisher’s book is better once you grasp fundamentals.
Q3: Do professional investors still recommend Fisher’s book?
👉Yes. According to Harvard Business Review, Fisher’s philosophy influenced Buffett and many growth-oriented funds today.
Q4: Is Ittelson’s book still relevant?
👉Absolutely. As per Investopedia (2024), over 70% of small business owners fail within 10 years due to poor financial literacy. Books like this help bridge that gap.
Q5: Which book is more practical?
👉For investors: Fisher. For financial literacy and running a business: Ittelson.
Conclusion:
So which book should you choose?
- Choose Common Stocks and Uncommon Profits if:
- You are interested in growth investing.
- You want to learn how to evaluate companies beyond numbers.
- You are a long-term investor inspired by Warren Buffett and other legends.
- Choose Financial Statements if:
- You are a beginner who struggles with accounting and finance.
- You’re an entrepreneur or student who needs clarity on reports.
- You want a simple, practical, step-by-step guide to financial literacy.
Ultimately, both books serve different but complementary purposes—one teaches how to spot exceptional companies, the other shows how to read the reports that prove their strength. Which one fits your journey today?
