Phillip A. Fisher is a historical figure in value investing. He was one of the pioneers in going beyond financial statements and looking for companies to invest in with a solid business and sustainable competitive advantages. In this article I will talk about the life and investing style of Phillip Fisher along with some of his most popular famous phrases.
Phillip Fisher's life
Phillip Arthur Fisher's professional career began in 1.928 when he left the newly created Graham y 15% Fisher”
Phillip Fisher inverter style
The essential characteristic of Phillip Fisher's investing style is the pursuit of quality as well as price in the companies in which he invested. To do this, it combined financial analysis with competitive analysis, being one of the pioneers in making both types of analysis that are considered essential in current value investing compatible.
Fisher was also known for investing for the very long term. In fact, one of his most famous investments was that of Motorola, whose shares he bought in 1.955 when it was a simple radio factory and kept until the moment of his death in 2.004 with great profitability.
Like most value investors, Fisher liked to invest against the crowd, at times when markets were gloomy. To do this, he stressed the importance of staying calm and controlling your nerves to reverse the current.
In his eagerness to thoroughly analyze the companies in which he was going to invest, Phillip paid special attention to the search for a competent management team, even going beyond the results of the management team and looking for people with a great moral and ethical sense you can trust for your money.
Finally, another feature that characterized Phillip Fisher's investing style is his low predisposition to diversify his investment portfolio. He used to concentrate his portfolio in very few companies that he thoroughly vetted and controlled. In my opinion, it is a practice that can be very good for savvy investors who may spend a lot of time investing and controlling their investments, but it is not recommended for most and can be dangerous for those who are just starting out.
Fisher is the author of the book "Ordinary Stocks and Extraordinary Benefits" which, although it was first published in 1.958, its lessons are still more than current today. In fact, it is part of my section of Recommended books to learn to invest in the stock market.
Phillip Fisher's famous phrases
"Patience is necessary to achieve great returns through investments"
"The best time to sell a good stock is almost never"
"Margins on past profits are not important to investors, they are margins on future profits"
"I don't want many good investments, I want few exceptional ones"
"Investing in a company without having sufficient knowledge about it is more dangerous than not having adequate diversification"
"Don't follow the crowd"
"In the stock market having a good nervous system is even more important than having a good head"
- Phillip Fisher en la Wikipedia
- Phillip Fisher en la Investopedia (inglés)
- Phillip Fisher en Quoteswise (inglés)