Philip Fisher
Market Wizards Index: N/A%
Not available
Fund or affiliation
- Author of "Common Stocks and Uncommon Profits"
- Investment counselor since 1 March, 1931
Methodology
- Growth investing concentrating on qualitative due diligence of companies.
- Key idea: make a lot of money by investing in an outstanding enterprise and holding it for years and years as it becomes bigger and better.
Research/ Evaluation Techniques Employed
- Criteria: Company in question should combine outstanding business management with strong technological lead in most of what it does.
- As in any other field, sources and knowledge slowly build up: one piece of technology information leads to another. The same is true in the consumer world, finance, or any specialty, but nobody can do justice to several of them.
- The business grapevine - Scuttlebutt. Network of sources and contacts to do qualitative due diligence: trade shows, industry association executives, repairman, and consumer report, etc...
- Investor should check on 1) the effectiveness of the research, and 2) quality of the sales organization.
- A checklist of criteria that qualifies and disqualifies companies. Mainly in two groups: qualities of management, and characteristics of the business.
- Stresses on reinvestment of substantial part of today’s profits for continued growth.
Trading Techniques Employed
- Buy when the start-up period of a substantial new plant - has depressed earnings.
- Buy when there is bad corporate news: a strike, marketing error, or some temporary misfortune.
- Buy on favorable terms arises in capital intensive industry when a company needs additional capital.
- "If the job has been correctly done when a common stock is purchased, the time to sell it is - almost never."
Philosophy and beliefs
- Insists that good management must first and foremost be working to build the company over the long term.
- Conservative investor is one who owns winners, not large, well-known companies.
History and other facts
- Spent a year in Stanford Business School.
Examples
- Took a major position in the original private placement of Texas Instrument and kept the stock ever since.
- Big holdings in FMC, Dow, Texas Instruments, and Motorola.
Performance Record
- N/A
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