![]() It refers to a method of conducting due diligence about a company and its investment merits by talking to all kinds of people related to it like customers, vendors, trade associations, competitors and employees (former and current). It’s not that far off from the more modern office equivalent – “watercooler talk”.Īs it relates to investing, the Scuttlebutt Method was coined by Phil Fisher in his seminal book "Common Stocks and Uncommon Profits" (See Recommended Reading). Since sailors exchanged gossip when they gathered at the scuttled butt for a drink of water, scuttlebutt became slang for gossip or rumors. Water for consumption on sailing ships was typically stored in a scuttled butt - a butt (cask) which had been scuttled by making a hole in it so the water could be withdrawn. The origin of the term is related to sailing. Scuttlebutt is a term that generally refers to rumors or gossip. However, I thought it was due time to dig a bit into what scuttlebutt investing involves and why I am so passionate about it. You might have thought that this would have been my first post ever - explaining the Scuttlebutt Method but alas so much to write about and so little time. Scuttlebutt Investor is an homage to the great Phil Fisher – an early GARP (Growth At a Reasonable Price) investor before GARP was even a thing. ![]() ![]() The first question I usually get when I tell someone the name of my blog is: where did you come up with such a dumb name? And I get it – “Scuttlebutt” isn’t the sexiest name for a website or blog but it is an idea that has resonated with me over the years and to which I am forever indebted.
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