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Philip Fisher

Pioneer of growth investing and author of Common Stocks and Uncommon Profits, who developed the "scuttlebutt" method of researching companies through industry contacts.

growth-investingscuttlebuttlong-term-thinkingquality

Philip Fisher (1907-2004)

Born: September 8, 1907 (San Francisco) Died: March 11, 2004 (San Francisco) Education: Stanford Business School Career: Investor, author, pioneer

Overview

Philip Fisher was a pioneering growth investor who developed methods of evaluating companies that warren-buffett later described as 15% of his own approach. Fisher's "Common Stocks and Uncommon Profits" (1958) introduced concepts like the "scuttlebutt" method and the "15 redeeming qualities of a growth stock."

Key Contributions

1. The Scuttlebutt Method

Fisher advocated talking to competitors, customers, suppliers, and former employees before buying a stock. "Talk to everyone who can give you information about the company."

2. Growth Investing Framework

Fisher focused on companies with:

  • Strong R&D
  • Favorable long-term growth prospects
  • Superior management
  • High profit margins

3. "15 Points" for Finding Growth Stocks

Fisher identified 15 qualitative and quantitative factors that distinguished great investments.

Common Stocks and Uncommon Profits

Published in 1958, this book influenced generations of investors. Buffett read it early in his career and incorporated Fisher's ideas.

Key Lessons

  • Qualitative analysis matters
  • Long-term holding of growth stocks
  • Management quality assessment
  • Diversification vs. concentration

Fisher's Approach vs. Graham

Graham Fisher
Quantitative Qualitative
Cheap stocks Great businesses
Cigar butts Compounding machines
Net-net working capital Future earnings power
Margin of safety in price Margin of safety in business

Buffett famously said: "My investment approach is 15% Fisher and 85% Graham."

Famous Quotes

"The stock market is filled with individuals who know the price of everything, but the value of nothing."

"Never invest in a company that you don't fully understand."

"The time to sell a stock is when you find a much better company."

Key Holdings

Fisher was known for concentrated, long-term holdings of exceptional companies. He famously held Motorola for decades.

Legacy

Fisher's influence on modern investing:

  • Growth investing as a legitimate discipline
  • Qualitative company research
  • Concentrated portfolios
  • Long-term holding of exceptional businesses

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