Q: Do you really manage money for your clients with the Three Questions?
A: Of course! I can’t say it enough—the only way to make money in the market is by knowing what others don't. My firm, Fisher Investments, manages billions for individuals and institutions—and I only make market bets when I’m pretty sure I know something unique. The Three Questions help me do that. Most professionals want you to think this is very hard, but it isn’t. You just need to think like a scientist. The Three Questions help you do that.
Q: How can I use the Three Questions to become a better stock picker?
A: The Three Questions can help you pick better stocks, but so what? You don’t need to pick the best stocks to make money in the market. In the book I show you why.
Q: Why Three Questions? Why not Two or Four? Or Eighteen?
A: The Three Questions are really just one question: What do you know that others don’t? But that one question doesn’t give you something to act on. The Three Questions gives you a process to get at what you can know that others don’t.
Q: What made you decide to write this book?
A: This book pays homage to the most holy of “isms”—Capitalism. If you are not already a healthy fan of Capitalism, I hope the book will convert you.
Q: It’s been 12 years since your last book. Why now?
A: It takes a lot of time to write a book. But I haven’t stopped writing. I’ve been writing the Portfolio Strategy column monthly in Forbes for the last 24 years. I’ve also been writing a monthly column in the UK for Bloomberg Money. And you may have seen my articles in Research, Financial Planning, Millionaire, a slew of other places as well as scholarly journals. But since my last book, I’ve been primarily focused on my firm, Fisher Investments. I provide a service that is in demand, and along the way employ a lot of people. How Capitalistic is that?
Why now? I am chairman and CEO of a well-run and highly delegated business which gives me time to finally put my strategy into writing.
Q: Why are you sharing your secrets with the public? Aren’t you giving away your market advantage?
A: First, the market truths I share are simply a demonstration of the Questions. Learning to use the Questions will help much more than reading about a few cute tricks I know. Learn to use the Questions, and you’ll be able to keep finding new truths on your own forever. There’s your advantage.
Second, no! The point of the Three Questions is constant innovation. If what I know is good and true, others will find out eventually, whether I clue them in or not. But I’ll already have moved on because I use the Three Questions to keep innovating. And you can do it too.
Q: What effect do you hope this book will have on the future?
A: I hope fewer investors will treat investing as a craft, and start approaching it as a science. If we all become scientists, who knows where we can go! It’ll be exciting to see. But knowing what I know about investors, I know that evolution will take a very long time. Which is good news, because those of us who think like scientists will have a distinct advantage over everyone else!