Chapter 1: Clues from the Past Fisher begins by examining historical market cycles, especially the 1929 crash, to highlight that governments often respond to downturns by stimulating the economy through deficit spending and tax cuts. These policies create inflationary pressures. In such an environment, Fisher argues that high-quality equities are superior to bonds as a store of value. For example, government bonds issued after World War II offered low nominal yields that resulted in negative real returns after inflation. Fisher concludes that top-tier stocks , not bonds, preserve long-term purchasing power. He also emphasizes the importance of research and development (R&D) : companies that continually innovate tend to grow faster and maintain competitive advantages. The key takeaway is to seek firms with long-term growth opportunities, strong innovation pipelines, and large, expanding markets. Chapter 2: What “Scuttlebutt” Can Do This chapter focuses on Fisher’s famous ...
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