The Master of Quality Stocks

Key Takeaways

1. Philip Fisher's Big Idea: Fisher wrote a very important book that changed how people pick stocks for making money over a long time, not just quick cash.

2. His Unique Way of Picking Stocks: Fisher looked for companies that would grow slowly but surely, like his long investment in Motorola, showing us to wait and see our investments grow.

3. The "Scuttlebutt" Strategy: He suggested talking to customers, suppliers, and workers to really understand a company, more than just looking at its numbers.

4. Warren Buffett Learned from Him: Fisher greatly influenced Warren Buffett, teaching him to find companies that are not just cheap but can grow and bring new ideas.

5. Guidance for Today's Investors: Fisher's tips on what makes a good stock stand the test of time, stressing on finding companies that keep improving, work efficiently, and have great leaders.

The Wisdom of Phil Fisher

When we chat about the big names in investing, Fisher really stands out. He wasn't just any investor; he was a pioneer, sharing ideas that have helped us all think differently about growing our money through stocks. His book, Common Stocks and Uncommon Profits, isn't just any read; it's the go-to guide for investors. Released in 1958, it was something new and quickly became super popular. Fisher had a special way of explaining how to choose stocks that would do well over time, and people everywhere took notice. Even today, his advice is just as useful as it was back then.

The Early Years

Phil Fisher was born in 1907 in San Francisco and had an amazing start in finance after finishing his economics degree at Stanford. He wasn't one to just go with the flow. He saw an opportunity in the stock market and jumped in, even when times were tough during the Great Depression. In 1931, he started his own company, Fisher & Co. It was a bold step, starting an investment firm when the economy was down, but Fisher was all about finding companies that would grow big over time and sticking with them.

Philosophy & Approach

Fisher's way of thinking about investing was new and smart. While others were all about quick wins, Fisher looked for companies that would grow steadily for years. He was one of the first to really hold onto stocks for a long time, like his famous investment in Motorola in 1955, which he kept until he died in 2004. This story shows how much Fisher believed in sticking with good companies for the long haul. He taught us to be patient and trust in our investment choices.

The Scuttlebutt Method

Fisher had this cool strategy called the "scuttlebutt" method. It was all about getting the inside scoop on companies from people like customers, suppliers, and employees. He believed you could learn a lot by asking around and getting to know a company from the inside out. This way, investors could see beyond just the numbers and understand what really made a company tick.

Warren Buffett’s Mentor

One of the most famous investors, Warren Buffett, has said that Fisher was a huge influence on him. Buffett is known for picking winners, and he credits Fisher with teaching him to look for companies that are not only priced well but have the potential to grow and innovate. Buffett has said reading Fisher is a must for investors, showing how Fisher's ideas have helped shape the best in the business.

A Guide for Modern Investors

Exploring Fisher's "15 Points to Look for in a Common Stock" is like finding hidden gems for investors. These tips, though they were written a while ago, are perfect for anyone looking to pick companies that will be successful in the long run. Fisher talks about how important it is for a company to keep innovating, to be efficient, and to have a great management team. These ideas are just the beginning of Fisher's advice, giving us a solid plan for choosing the best stocks.

Conclusion

Phil Fisher teaches us to look deeper into companies we might want to put our money into. He showed us it's smart to wait and see how things turn out, just like he did with Motorola. Even Warren Buffett, a big name in investing, thinks Fisher’s ideas are really good. We've gone through Fisher's life and his smart ways of picking good companies. Now, I'm happy to tell you we've got more tips and help for you. Our referral program is full of useful stuff for your investing journey. And if you've got questions or just want to talk about investing, just send us an email. Let's keep using Fisher's smart advice to make our own smart choices with our money.

Happy investing!
Josh

P.S. I want to give a special shoutout to the newsletters I currently enjoy reading:

• Capitalist Letters

• Make Money, Make Time

• Quality Stocks

• The Weekend Investor