Philip Fisher is a Market Wizard profiled at StreetStories
October 08, 2005
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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