Are you sick of feeling lost in the stock market jungle, unsure of which path to take? Do you wish you could confidently build your portfolio and make wise investment decisions like a pro?
Well, you’re in luck! We’ve gathered 19 of the most insightful quotes from the legendary Philip Fisher, who revolutionized the world of investing and mentored the great Warren Buffett himself. Keep reading to absorb the knowledge of one of the greatest investment minds in history and unlock the door to your financial success!
1. “The successful investor is usually an individual who is inherently interested in business problems.”
Are you eager to uncover the secrets behind a business’s success or failure? If that’s the case, you’re on track to become a thriving investor! After all, Philip Fisher champions growth investing – a strategy that demands the ability to spot stocks ripe for growth and avoid stocks heading toward disaster.
You’ll need a keen sense of detecting problematic businesses to do so. For instance, if a company is plagued by poor management or dismal financial statements, it’s a red flag you should avoid!
So, if you’re not prepared to dive deep into a company’s issues before investing, it’s best to sit on the sidelines! Remember, knowing who you’re partnering with is crucial before committing your money to an investment.
2. “I don’t want a lot of good investments; I want a few outstanding ones.”
This quote by Philip Fisher highlights the importance of being selective and focused when making investment decisions. This sage advice serves as a crucial reminder for investors to avoid spreading themselves too thin by scattering their funds across a multitude of stocks.
Instead, we should channel our energy into delving deep into the inner workings of a handful of businesses, analyzing their potential for impressive returns. This laser-focused approach demands patience, unwavering discipline, and a keen desire to comprehend the intricacies of the companies at hand.
By embracing Fisher’s wisdom and adopting this investment strategy, you’ll find yourself poised for unparalleled success in investing. So, conquer the market with a keen eye for those rare, exceptional opportunities that will set your portfolio ablaze.
3. “If the job has been correctly done when a common stock is purchased, the time to sell it is almost never.”
Philip Fisher championed the art of long-term investment strategy and had a keen eye for growth stocks. His wise words remind us that diligent research and analysis are crucial before diving into any stock purchase. Once you’ve made a well-informed investment decision, you rarely need to let go of that stock in the future.
This quote perfectly captures the essence of Fisher’s buy-and-hold investment philosophy. It encourages investors to seek out top-notch stocks with solid growth potential and hold onto them for the long haul rather than getting caught up in the frenzy of market timing or frequent stock trading based on short-lived fluctuations.
The core belief is that a carefully chosen stock will continue to flourish and yield returns over time, while the costs and risks of constant trading can chip away at potential gains.
4. “The stock market is filled with individuals who know the price of everything, but the value of nothing.”
Philip Fisher’s insightful quote explains the critical difference between price and value in the financial market. It serves as a powerful reminder to investors that understanding a company’s genuine worth is far more important than merely fixating on its current price.
This realization is precisely what led Fisher to develop the Scuttlebutt method. This innovative approach involves conducting exhaustive research on a company and conversing with its customers, suppliers, and management team. By employing the Scuttlebutt method, Fisher gained unparalleled insights into a company’s true value and growth potential, far beyond what could be inferred from examining its price tag.
By zeroing in on the intrinsic value of a company and its capacity for growth, you can make more informed investment decisions, selecting stocks poised for long-term success rather than chasing fleeting price fluctuations.
5. “The greatest investment reward comes to those who by good luck or good sense find the occasional company that over the years can grow in sales and profits far more than industry as a whole.”
In this insightful quote, Philip Fisher emphasizes the importance of pinpointing exceptional companies poised to significantly outshine industry averages in terms of sales and profit growth.
This idea lies at the heart of growth investing—a strategy that focuses on investing in companies displaying above-average growth in revenue, earnings, or cash flow, even if their share prices seem costly based on metrics like price-to-earnings or price-to-sales ratios.
Growth investing is all about capital appreciation, setting it apart from dividend income or value investing. Fisher suggests that the most substantial rewards await those who can either skillfully (with good sense) or fortuitously (with good luck) discover companies capable of consistently outpacing the industry’s overall growth.
Take a look at Fisher’s investment in Motorola as a prime example: he invested in this growth stock when it was still small but brimming with potential. Years later, Motorola became a household name and earned Fisher massive profits.
6. “Never promote someone who hasn’t made some bad mistakes, because if you do, you are promoting someone who has never done anything.”
Philip Fisher’s insightful quote underscores the value of embracing mistakes and taking risks on the road to success. The core message here is that if you’ve never stumbled or made errors, you’ve likely never dared to take significant risks or make bold decisions. In essence, you lack the invaluable experience and wisdom gained from facing challenges and conquering failures.
For investors, this powerful quote serves as a nudge to shake off the fear of making mistakes, as they are a natural part of the learning journey. Instead of obsessing over avoiding failures, investors should focus on extracting lessons from them and making smarter decisions moving forward. Adopting this mindset can help investors cultivate resilience and adaptability – essential traits for long-term triumph in investing.
Furthermore, this quote inspires investors to take calculated risks, as they are the catalysts for growth and progress. After all, Fisher didn’t create his groundbreaking investment firm Fisher & Co. in 1931 by taking the easy route – he did so through hard work and determination!
7. “I have already made up my mind, don’t confuse me with facts.”
In this tongue-in-cheek quote, Philip Fisher highlights a common pitfall many investors face: the reluctance to invest time and effort into making smart investment decisions. You can’t simply throw your money into a company based on a whim or a hot tip from a friend. To truly succeed, you must dive deep into the facts and analyze the company’s potential.
Of course, this level of dedication takes time, and let’s face it, many investors are just hunting for a get-rich-quick scheme. Fisher, however, believes that cutting corners won’t cut it for successful investors. So, what should you do instead?
Roll up your sleeves and perform your own research. Investigate if a company boasts competitive advantages and use Fisher’s 15-point checklist to ensure your investment ticks all the essential boxes. By embracing this thorough approach, you’ll avoid common investment pitfalls and stand a better chance of reaping the rewards of your hard-earned money.
8. “Conversely, as such a stock rises to, say, 50 or 60 or 70, the urge to sell and take a profit now that the stock is “high” becomes irresistible to many people. Giving in to this urge can be very costly.”
Philip Fisher’s insightful quote sheds light on a common psychological pitfall among investors: the irresistible urge to cash in on a soaring stock. As the stock price climbs, many investors feel compelled to sell and pocket the profit, fearing that the stock has peaked and won’t soar any higher. This impulse is fueled by the dread of missing out on potential gains and the yearning to secure those profits.
However, Fisher cautions that succumbing to this temptation can be costly for investors. By selling a stock simply because it has increased in value, investors risk missing out on even greater profits in the long run. In many instances, a stock’s price surge may be well-deserved, backed by the company’s robust fundamentals and promising growth prospects, which could propel the stock to new heights over time.
Instead of yielding to the siren call of skyrocketing stocks, investors should adopt a long-term mindset, holding onto their investments for extended periods. By doing so, we can harness the power of compounding and unlock the potential for remarkable capital appreciation. Embracing this long-term investment strategy is the surest path to achieving extraordinary profits and amassing wealth over time.
9. “A large company’s need to bring in a new chief executive from the outside is a damning sign of something basically wrong with the existing management.”
Philip Fisher’s insightful quote underscores the importance of a strong and adept management team within a company. He points out that if a large organization brings in a fresh chief executive from outside its ranks, it’s a glaring red flag signaling a fundamental flaw in management. This could stem from an absence of strong leadership, a lack of vision, or a failure to nurture internal talent for top-tier positions.
This quote serves as a potent reminder to investors that the caliber of a company’s management team is a critical element to weigh before diving into any investment.
A dynamic and competent management team can propel a company towards impressive growth, make shrewd strategic decisions, and secure long-term success. On the other hand, weak management can result in subpar performance, dwindling market share, and, ultimately, a nosedive in the company’s value.
10. “In the stock market a good nervous system is even more important than a good head.”
This Philip Fisher quote highlights the importance of a rock-solid temperament and unyielding nerves when investing. This powerful lesson reminds us that while a deep understanding of the market is vital, the true key to thriving in this high-stakes arena lies in mastering our emotions and staying composed.
You see, the stock market can often feel like a wild roller coaster ride, with prices soaring sky-high one moment and plummeting the next. It’s too easy for investors to be swept up in the whirlwind, making rash decisions fueled by panic or greed.
But those who truly excel in the long game of investing recognize that the secret to success is keeping a cool head and holding onto phenomenal stocks for a long time.
11. “Be extra careful when buying into companies and industries that are the current darlings of the financial community.”
Have you found a stock that has every investor raving about its growth? You might feel tempted to jump on the bandwagon, but Philip Fisher would advise you to hit the brakes and do your homework!
For instance, Fisher employs a rigorous 15-point checklist before committing to a company, ensuring it possesses genuine potential. He scrutinizes factors like the company’s management team and its financial prowess.
So, unless the stock ticks off most of those fifteen boxes, don’t bite! You’ll be patting yourself on the back when that company plummets, leaving other investors dumbfounded and wondering where it all went wrong.
12. “Practical investors usually learn their problem is finding enough outstanding investments, rather than choosing among too many.”
Philip Fisher’s insightful quote sheds light on a crucial challenge that practical investors face: pinpointing truly exceptional investment opportunities. Many investors might assume their main task is to wade through a sea of potential investments, selecting the cream of the crop. However, Fisher astutely points out that the real problem lies in uncovering a sufficient number of outstanding assets in the first place.
So, what’s the golden nugget of wisdom investors can glean from this quote? It’s all about prioritizing quality over quantity when it comes to investment decisions. Instead of stretching their resources thin by pouring money into a vast array of mediocre opportunities, investors should laser-focus on identifying and investing in a select few genuinely exceptional options that hold the potential to yield impressive returns.
To embrace this approach, investors must be relentless in their research and analysis, always on the hunt for fresh, promising investments. They also need to develop patience, waiting for those perfect opportunities to reveal themselves.
13. “More money has probably been lost by investors holding a stock they really did not want until they could ‘at least come out even’ than from any other single reason.”
Don’t cling to a sinking stock just because you’re praying to break even! Phil Fisher warns that this approach will only lead to greater losses. Instead, if you maintain a laser-focused portfolio and skillfully manage your stocks, you must be fearless in letting go of those that underperform!
But hey, you can sidestep this whole ordeal by doing your homework upfront and identifying exceptional growth stocks in the first place. By doing so, you’re able to hold onto these gems for the long haul, watching them flourish and thrive and reaping the rewards of your savvy investment choices!
14. “Usually a very long list of securities is not a sign of the brilliant investor, but of one who is unsure of himself.”
Sure, diversifying your portfolio by investing in a variety of companies and industries is crucial. After all, you don’t want to put too many eggs in one basket. However, as Philip Fisher points out, a portfolio brimming with investments may signal an investor who lacks confidence. But why is that?
Well, an exceptional investor can identify a handful of promising stocks and trust their choices without feeling the need to hunt for more. Meanwhile, an investor with a jam-packed portfolio knows that if one stock plummets, the others can cushion the blow. But if they’re juggling too many stocks, it dilutes their profit potential along with their risk.
So, instead of cramming your portfolio with more stocks than you can handle, focus on discovering a few hidden gems! Embrace the confidence of a savvy investor and watch your investments soar.
15. “Buying a company without having sufficient knowledge of it may be even more dangerous than having inadequate diversification.”
Over-diversification may be a common pitfall in investing, but let’s not forget that ignorance can be just as detrimental. Why, you ask?
Simply put, if we dive into investments in companies or industries we’re not well-versed in, we may not make the wisest decisions. For example, you might believe a company boasts solid fundamentals, only to discover its financial performance pales in comparison to other players in the same game.
That’s why investing guru Warren Buffett consistently urges investors to stick to their circle of competence, and Philip Fisher proudly echoes this sentiment! So, before you take the plunge, ensure you’re informed and confident in your investment decision.
16. “There are fads and styles in the stock market just as there are in women’s clothes.”
In this insightful quote, Philip Fisher likened the stock market to the ever-changing fashion world. He suggested that, much like the ebb and flow of style trends, the stock market experiences a constant evolution of popular phases and fads. These fleeting trends might encompass specific industries, sectors, or investment approaches that momentarily capture the attention of investors, only to fade away as quickly as they emerge.
This valuable lesson serves as a reminder for investors to resist the temptation of chasing trends. As it’s unwise to adopt every fashion craze without considering whether it complements your unique style or body type, investors must exercise discernment when evaluating market trends. It’s crucial to weigh trends against your personal investment goals, including risk tolerance and overarching strategy.
17. “Companies that have failed to go uphill have invariably gone downhill.”
Philip Fisher seeks companies with immense potential to skyrocket in value and amplify his profits. However, his growth investing strategy isn’t merely about dodging declining stocks; it’s also about steering clear of stagnant companies that neither grow nor suffer significant losses.
After all, Fisher asserts that a non-growing company won’t just hold steady over time and allow you to break even. Instead, it will inevitably lose value and erode your profits. So, make sure you’re only investing in growth stocks with strong management teams and an upward profit trend!
18. “There is the need for patience if big profits are to be made from investment.”
This Philip Fisher quote underscores patience’s crucial role in achieving remarkable profits from investments. It urges investors to embrace a long-term approach, known as “buy and hold,” to unlock the potential of their investments.
The “buy and hold” strategy revolves around acquiring investments, such as stocks or bonds, and clinging to them for an extended period, undeterred by market fluctuations. This mindset stems from the conviction that, over time, the investment’s value will soar, ultimately overshadowing any short-term market turbulence with long-term gains.
By adopting the “buy and hold” approach, investors can harness the power of compounding, mitigate risks, slash costs, and potentially savor tax benefits. Ultimately, this strategy paves the way for substantial profits over time, rewarding those with the foresight and patience to stay the course.
Need an example? Look at Fisher’s investment in Texas Instruments in the 1950s. This semiconductor company was small when Fisher first invested, but he held onto his stock and earned jaw-dropping profits as the company grew to dominate the market.
19. “I don’t want to spend my time earning a lot of little profits. I want very, very big profits that I’m ready to wait for.”
In this quote, Fisher describes the significance of embracing a long-term mindset when diving into investing. His wisdom teaches us that the key to unlocking substantial returns lies in our ability to be patient and hunt for those golden opportunities rather than scrambling for quick, short-lived wins.
So, what can we, as investors, glean from this nugget of wisdom? Simple: adopt a forward-thinking, long-haul perspective when making investment decisions. Instead of getting caught up in buying and selling stocks for meager profits, zero in on those companies boasting rock-solid fundamentals, unbeatable competitive advantages, and jaw-dropping growth potential.
By taking a leap of faith in these companies and holding onto their stocks for the long run, you’ll set yourself up to strike gold as their value soars over time. So channel your inner investing guru, and embrace the power of patience and long-term thinking.
Conclusion: Why Read Philip Fisher Quotes?
In conclusion, Philip Fisher’s quotes are a goldmine of wisdom and inspiration for investors eager to learn from one of history’s most brilliant investing minds. His advice, covering everything from cultivating patience to conducting exhaustive research and grasping the essence of a company’s value, has steered countless individuals toward investment triumph.
By immersing yourself in Fisher’s quotes and putting his tactics into action, you can unleash the power of your investments and achieve great returns. So, take a moment to ponder these nuggets of wisdom and let them serve as your beacon as you traverse the exciting world of investing. Remember, the path to investment victory is paved with knowledge and tenacity – and there’s no better mentor than Philip Fisher to light your way.
Eager to learn more and revolutionize your investing prowess? Don’t waste another second – plunge into Philip Fisher’s insights and strategies today with his masterful book “Common Stocks and Uncommon Profits.”