Wall Street's 'unsupportive' investors,
Ken Fisher's masterpiece, "Super Stocks," has been revised and republished after 10 years!

"Super Stocks," known as the eternal bible of stock investment, has been revised and published for the first time in 10 years since its publication in 2009.
This book, which has been inundated with requests for republication from numerous investors, is the masterpiece of Ken Fisher, who is recognized by the American media as "the most accurate market expert" and the creator of the PSR, an essential indicator of value investing.
In this book, Ken Fisher, the son and sole disciple of growth stock investment guru Philip Fisher, whom Warren Buffett regards as his spiritual mentor, introduces a specific method for discovering "super stocks" that deliver returns of approximately 10 times over three years.
The essential condition for super stock is 'defect'.
Even promising growth companies and high-performing businesses that record significant profits inevitably encounter fatal flaws, such as product defects, poor management, or changes in political circumstances, as they conduct business.
This entails a 'temporary' large price drop amid investor concerns, and the goal is to capture 'super stocks' created by 'super companies' that can overcome the crisis at the right time.

The highest investment returns come from investing in small-cap stocks that are growing rapidly but haven't yet caught the attention of the stock market.
As the company grows further and the financial community finally begins to appreciate its true value, the stock price rises as buying pressure mounts, further increasing its value.
Fast-growing startups often go through life cycles, which occur for a number of reasons.
The most important cause among them is the ‘product life cycle.’
In the case of immature startups, management often makes serious mistakes that lead to losses or even threats to survival.
But great startups learn from their mistakes.
Through this process, companies develop into better companies.
---From "CHAPTER 01: There Must Be Problems to Hit the Jackpot"

Using PRR, we can identify cases where a super company appears overvalued based on its PSR but is actually undervalued. Consider a super company with a slightly overvalued PSR of 1.0.
Let's assume that this company's PRR is very low at 5.0.
This means that, given the market opportunities, current R&D spending will soon lead to new products that will increase sales and profits.
Check out this company's marketing.
If true, this company is valuable even if its PSR is somewhat high, since for some reason its PRR is very low.
If that's not true, it most likely means that this company's marketing is poor.
If that's the case, then the company's research spending will not bear fruit, and so it cannot become a true super company.

Applying PRR and PSR simultaneously forces us to seriously consider some of the often overlooked aspects of super stocks.
So, by applying PRR, investors can find opportunities that would otherwise be missed.

---From "CHAPTER 11 Two PRR Formulas for Discovering Super Stocks"

The most important thing is to look into the details of the business that determines a super company.
The cornerstone of super stock investing is analyzing the fundamental elements that form the foundation of a business and purchasing stocks of truly outstanding companies.
Only when you buy a super company's stock at the right price can it become a true super stock.
You can buy stocks of poor companies and see their prices rise two or threefold.
But unless it's a truly great company, the chances of its stock price rising enough to become a super stock are extremely slim.
Super companies are 'distinctive companies' in that they generate growth that far exceeds the average growth rate through self-funding (i.e., equity capital).
As prices rise, the growth rate that super companies generate with their equity capital should also rise.
Super companies must grow at least 15% compounded annually, based on "real" growth rates after deducting inflation.
If prices rise by 6% per year, Super Company should grow at least 21% compounded annually, and if prices rise sharply by 15% per year, it should be able to grow at least 30% compounded annually.
At any given time, among the tens of thousands of companies worldwide, there are only a few hundred super companies.

---From "CHAPTER 17: Find a Super Company to Catch a Super Stock"

Just as you should avoid large markets, you should also avoid mainstream technologies.
The same reasons as explained above often apply.
If possible, avoid technologies focused on by major national research institutes. Technologies focused on by large research institutes like IBM, TI, and Bell Labs will soon lead to large-scale commercial ventures involving them or other companies.
Instead, look at the areas where these large research institutes are not pouring R&D funds.
Large companies tend to invest large amounts of research and development funds in areas they see as having great future market potential.
A small company might spend years developing a better new technology, but it could be swept away by a single $50 million project from a giant research institute.
Avoiding mainstream technology is often like avoiding a big market.
For small businesses, the best markets are those that are fast-growing but not attractive to anteaters.
Small businesses that don't understand this often jump into big markets, only to suffer losses.
If you're a small business with $50 million in annual sales, a fast-growing market of say $150 million is a much better bet than a much larger, faster-growing market.

---From "CHAPTER 23: Finding Super Companies Among Ants"