Lessons From Warren Buffett

Lessons From Warren Buffett: Use Scuttlebutt as a Part of Your Investment Strategy

Famed investor Phil Fisher, author of Common Stocks and Uncommon Profits, believed that there was a lot more work for a successful investor to do besides just reading financial reports. He also focused on scuttlebutt (a word meaning rumor or gossip) to find out what people were saying about a company. It is a method that Warren Buffett endorses.

“When I started out, and for a long time I used to do a lot of what Phil Fisher described. I followed his scuttlebutt method,” Warren Buffett said at the 1998 Berkshire Hathaway Annual Meeting. “ I believe that as you’re acquiring knowledge about industries in general, companies specifically, that there really isn’t anything like first doing some reading about them, and then getting out and talking to competitors, and customers, and suppliers, and ex-employees, and current employees, and whatever it may be.”

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© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.