Philip Fisher, a relatively unsung hero compared to some of his contemporaries, stands as a giant in the world of investment. His philosophies, outlined in his seminal work “Common Stocks and Uncommon Profits,” have influenced generations of investors, including the legendary Warren Buffett. Fisher’s focus on long-term growth investing, meticulous research, and understanding the qualitative aspects of a business set him apart and paved the way for a new era of investment thinking. This article delves into the life and accomplishments of this remarkable financial leader, exploring his strategies and the lasting impact he’s had on the financial world.
Born in San Francisco in 1907, Fisher’s fascination with the stock market began early. After graduating from Stanford Graduate School of Business in 1928, he embarked on a career in investment analysis, founding his own firm, Fisher & Company, in 1931. This marked the beginning of a remarkable journey that would span decades and revolutionize the way investors approached the market. Unlike many of his peers who focused on short-term market fluctuations, Fisher championed a long-term buy-and-hold strategy. He believed in identifying companies with exceptional growth potential and holding onto their stock for years, even decades, allowing the power of compounding to work its magic.
Fisher’s investment philosophy wasn’t just about numbers; it was about understanding the very essence of a business. He developed a “scuttlebutt” method, a meticulous research process that involved interviewing customers, competitors, suppliers, and employees to gain a holistic view of a company’s operations, culture, and competitive advantages. This deep dive into qualitative factors allowed him to identify companies with sustainable growth prospects, a key element of his long-term investment strategy.
One of Fisher’s most significant contributions to investment thinking is his emphasis on “15 points” to look for in a common stock. These points, detailed in his book, encompass a range of qualitative and quantitative factors, including strong management, a commitment to research and development, efficient sales and marketing efforts, and a sound financial structure. These principles, though formulated decades ago, remain remarkably relevant in today’s market, providing a timeless framework for evaluating investment opportunities.
His long-term approach and focus on qualitative research led to remarkable success. He identified and invested in companies like Motorola and Texas Instruments early on, holding onto their stock for decades and reaping substantial returns. These investments, guided by his meticulous research and unwavering belief in long-term growth, solidified his reputation as a visionary investor.
Fisher’s influence extends far beyond his own investment successes. His book, “Common Stocks and Uncommon Profits,” became a bible for growth investors, inspiring generations to adopt his principles. Warren Buffett, arguably the greatest investor of all time, has acknowledged Fisher’s profound influence on his own investment philosophy, stating that his approach is “85% Philip Fisher and 15% Benjamin Graham.” This testament from Buffett underscores the lasting impact of Fisher’s work on the world of investing.
Fisher’s legacy is not just about financial success, but about a principled approach to investing. He emphasized the importance of integrity, long-term vision, and a deep understanding of the businesses one invests in. These values, coupled with his pioneering investment strategies, have cemented his place as one of the most influential figures in financial history.
