Philip Fisher was born in San Francisco in 1907. He began his career as a stockbroker and eventually started his own brokerage firm. Starting from the early days of his life, Fisher was always interested in investments, and he initially focused on companies in the San Francisco area before expanding to other parts of the country.
Fisher eventually developed a distinct philosophy that he called growth investing, which focused on finding adequately financed and well-run companies [that] were expected to yield high rates of return over the years ahead. His investment strategy began with weeks-long research trips that could include interviewing company management and employees, studying the competition, and analyzing the companys products and patent portfolios.
Once he identified a growth stock that he believed had potential, Fisher employed his classic approach of buying and holding. This passive management style focused on long-term investments, where investors do not attempt to compete with day traders and instead wait for steady and consistent returns over time.
This style was revolutionary in 1959, when Fisher first wrote his famous book, Common Stocks and Uncommon Profits, which focused on the concept of growth investing. Many other investors and Wall Street firms began to follow this strategy leading to the emergence of big box retail and megamalls.
Fisher was famous for using this strategy to turn around companies. He famously invested in Motorola in the 1970s, which at the time was a struggling radio-equipment manufacturers. Fisher purchased their stock along with additional financing for their development plan. Over the next five years, he quadrupled his investment and turned the company into a leading technology firm.
Fishers investments in quality growth companies and his enthusiasm for small start-ups have been the foundation for numerous success stories. His commitment to quality has inspired generations of investors who adopted his philosophy as well as developed their own.
Fisher died in 2004, leaving behind a legacy of smart and successful investments. He understood the importance of researching and staying committed to growth stock investments. He learned that patience should be rewarded and that quality companies will always have value in the market. While he passed away over a decade ago, his influence and impact on investment and the financial industry will live on forever.
