About
Philip Fisher was an American investment analyst and fund manager who is widely regarded as one of the pioneers of growth investing and modern investment research methodology. Here's who he was:
Philip Fisher was born in 1907 and founded Fisher & Co. in San Francisco in 1931, where he managed money for wealthy individuals and institutions for over 70 years until his retirement. Fisher developed a distinctive investment approach that focused on buying exceptional growth companies and holding them for decades. His method emphasized qualitative analysis of management quality, competitive advantages, and long-term growth prospects rather than traditional quantitative metrics popular at the time.
Fisher is known for developing the "scuttlebutt method" of investment research, which involved extensive interviews with customers, suppliers, competitors, and employees to understand a company's true competitive position. He believed that superior companies with outstanding management and strong growth prospects would compound wealth over time, making short-term price fluctuations irrelevant. His approach required patience, as he typically held stocks for 10-20 years or longer.
Fisher's influence extends far beyond his own investment success to his impact on investment methodology and education. Warren Buffett famously said he was "15% Fisher and 85% Benjamin Graham," crediting Fisher with teaching him to focus on business quality rather than just statistical cheapness. Fisher's research methods and growth-oriented philosophy influenced generations of investors and helped establish growth investing as a legitimate investment discipline alongside value investing.
Philip Fisher's Best Quotes
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"The stock market is filled with individuals who know the price of everything, but the value of nothing."
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"I don't want a lot of good investments; I want a few outstanding ones."
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"If the job has been correctly done when a common stock is purchased, the time to sell it is - almost never."
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"The best time to buy a growth stock is when its true worth is not yet recognized by the majority of investors."
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"Really good management must have both a vision of what the company can become and the drive to make that vision a reality."
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"Conservative investors sleep well. But to be a successful investor, you must be willing to act when others are fearful."
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"The successful investor must have patience. Rome wasn't built in a day, and neither are great fortunes."
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"I have frequently made my best purchases when the general market was pessimistic and my worst purchases when it was optimistic."
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"Growth and value investing are joined at the hip. Growth is simply a component of value."
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"Never promote someone who hasn't made some bad mistakes. If they haven't made mistakes, they haven't tried hard enough."
Written Works
Common Stocks and Uncommon Profits
Fisher's seminal work introduced his "fifteen points to look for in a common stock," a systematic framework for evaluating growth companies that remains influential today. The book explains his scuttlebutt research methodology, emphasizes the importance of superior management, and argues for concentrated investing in exceptional companies. This work established Fisher as the intellectual father of growth investing and provided practical tools for identifying companies with sustainable competitive advantages.
Conservative Investors Sleep Well
Fisher's second major book expanded on his investment philosophy, focusing on how to build and manage a portfolio of growth stocks while minimizing risk. The book explores the psychological aspects of investing, explains how to evaluate management quality, and provides guidance on when to buy, hold, or sell stocks. Fisher emphasized that true conservatism comes from owning shares in outstanding companies rather than diversifying across mediocre ones.
Developing an Investment Philosophy
This collection of Fisher's essays and speeches covers various aspects of his investment approach, including portfolio management, market analysis, and the evolution of his thinking over decades of investing. The book provides insights into how successful investment philosophies develop and adapt to changing market conditions while maintaining core principles.
Paths to Wealth Through Common Stocks
Fisher's comprehensive guide to stock investing covers both theoretical foundations and practical applications of his growth investing approach. The book explains how to identify companies with superior growth prospects, evaluate management effectiveness, and build long-term wealth through equity ownership. It serves as both an introduction to growth investing and a detailed manual for implementing Fisher's methods.