Philip Fisher, who was also popularly considered the ‘father of growth investing’ on Wall Street, was a prominent US-based stock market investor and an author whose primary focus was always to pick quality and sensible stocks based on deep research and long-term investment plans.
Philip Fisher famously said that he did not need to make a lot of good investments in his life, but he wanted a few outstanding ones, which highlighted the veteran investor’s growth investing mindset while picking stocks.
“I don’t want a lot of good investments; I want a few outstanding ones,” said Philip Fisher.
Fisher, who authored the famous book ‘Common Stocks and Uncommon Profits’ passed away on 11 March 2004, but his iconic quote about looking for a few outstanding investments comes to mind at a time when stock market investors are often in search of investments generating good returns.
What did Philip Fisher mean?
Philip Fisher was always a believer in thorough research, focusing on a few investments, long-term planning, and quality asset management, among other things, in his investment journey.
This sense of deep, quality, research-based investment tactic is what made him famous in the stock market and among the readers of his book. Fisher’s investing ideology is designed to help investors make their investment decisions in an informed and smart way.
Through this quote, Philip Fisher actually meant that even though diversification of investments has its own merits, the idea of concentrating on a few selected stocks was his approach.
The quote, which was actually taken from his book, mentioned that Fisher thinks it is better to have a few outstanding investments rather than have a lot of good investments. However, he also highlighted that all such stock picks should have a moat and should be high-quality businesses.
Philip Fisher said this investment strategy helps investors think and allocate their resources efficiently while having the ease of monitoring ability.
Patience in investing
Much similar to billionaire value investor Warren Buffett, Fisher also advised investors about holding on to the stocks which people research well, giving them the time to compound their value in order to generate massive returns.
Fisher has another famous quote, which says, “If the job has been correctly done when a common stock is purchased, the time to sell it is almost never.”
The American investor’s advice comes to mind, looking at the context of the Indian stock market, where long-term investments have the potential to benefit from the economic growth and market development in an emerging economy like that of India.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
