This publication will share and demonstrate what is written and communicate within the book by Phil Fischer, which is the origin of qualitative growth. The greatest concern of investors must be to manage the risk. If you manage to understand your business and all your unique qualities while considering the risk? It is likely to have stumbled with the basis of qualitative growth principles of growth.
Asking detailed difficult questions. Example: When do we buy or invest in a company or security? It is natural to ask detailed pointed questions and do some due diligence before making that investment. What if we add the fact that we are not looking for dividends? That is basically the investment base of Phillip Fisher’s investment philosophy. Let’s enter some examples of questions and details.
Charlie Muger can rest in peace a long time ago when Berkshire was growing. He convinced Warren Buffett to begin to partially consider and adopt Phil Fisher’s philosophy to invest to implement in Berkshire’s strategy. If I remember correctly that this video should help. Warren Buffett begins by sharing Phil Fisher’s book is one of the best books on investments.
Who is the investor Phillip Fisher
Philip Arthur Fisher was an investor of American shares better better known as the author of Common actions and unusual profitsAn investment guide that has been printed since it was first published in 1958. Mr. Fischer basically began using his ideas as an investment philosophy. Example, suppose that if an action will exceed the long -term market. In this case, no matter what the current price! Because the performance over time will exceed price volatility and increase if you have done its due diligence and leg work properly.
Mr. Fisher focused on the finding of qualitative facts and the positive assumptions backed by tangible information. The fact that you have investigated so heavy is that your findings can lead to sharing growth and have adequate information for its long -term investment foundations.
Put another way? Qualitative investment requires assumptions about the future that are made on the basis of quality. An analyst will issue judgments about the perspectives of the actions based on the qualitative attributes of the company.
Mr. Phil Fisher’s career began in 1928 when he left the newly created Stanford Graduate Business School (later he would be one of the three people who teach the investment course) to work as a values analyst with the Anglo- Bank of London in San Francisco.
Qualitative growth and investment
Mr. Fisher wrote in his book that details a basic verification list that helps investors to examine and classify investment actions and opportunities using qualitative and a verification list of sophisticated questions that reach a conclusion of “yes, no or maybe”. This investment strategy gave birth to qualitative growth and investment.
To ask questions that helped Mr. Fisher?
- Does the company have excellent management teams?
- How are the qualitative foundations of the company in the balance instead of using the proportions?
- The price of the shares is not evaluated. So, if an action is expensive, Fischer’s reasoning is seen towards the long -term growth of the business, which will exceed short -term actions prices.
- If an investment fails any of the questions in the verification list after investing? Mr. Fischer makes a point to continue selling the investment.
- Understand the business and what makes the business work? Valuable question.
- R&D spending? If the target company is spending and surpassing competitors? This is a good indicator or qualitative foundations at work within the business.
- What makes the business grow? Very important to understand.
- Does the business have picas customers?
- Commercial benefit margins must be healthy.
- Does Executive Management have outstanding community relations?
- Are cost analysis and quality controls of commercial products and services account for? Will this share information about operations?
- Is the integrity of companies management unquestionable?
- Would you like your family to work in this business? And the community values the presence of the company?
- Is there space for growth in the company’s space and management provides information on the current industry forecasts?
These are all the questions that Mr. Fisher has shared in his book written in 1958, which have resisted the test of time. And yes, many of these questions have evolved over time in my own use. And for justice, most of these cases or questions still apply a lot and are used today by institutional investors and professional investors that manage funds. You can recognize some of the companions of buffet that use these methods to investigate investments. Professional investors and fund managers such as Spier boy, Christopher Tsai, Li liu, Chuck Akre, Seth Klarman, Peter Lych, Bill Ackman And many more.
Conclusion
In conclusion of today’s publication on learning more about growth or qualitative investment philosophy, we must see what works in markets as legitimate investment philosophy and what does not work. If you consider that most people the investment experience and the ability to mitigate and consider the risk of investment. Most retail investors that daily trade have no advisors. This ends up making them lose money and treating the markets and credit as a casino. Its goal is always the same. They hope and pray that the shares of twenty dollars that they just bought with their life savings will increase in the next week or a few days. But that is not absolutely how professionals invest. You can’t do anything about investment from feelings or judge your own intuition! Serious research and a trained professional discipline are required.
People who do not use any investment philosophy will probably feel humiliated by the sudden volatility of the non -emotional market. Magellan’s fund manager, Peter Lynch, loved volatility for this exact reason. He used volatility to invest as a value investor during the times were afraid. So for justice? I think it is sure to say that after reading the book by Mr. Phil Fisher, the most sophisticated detailed and creative questions we make about an investment opportunity. The better it was, we will probably be years along the way. Thank you for reading everyone, please read Mr. Phil Fisher’s book. Uncommon actions and uncommon profits.
I thank you for reading my publication. It was wonderful to prepare this for you. And to my fellow professionals who manage investment funds and use Mr. Fisher’s investment philosophy? Please send me a line to correct anything you have written or shown in this publication that is incorrect. I am doing my best with what I have. Thank you. JS
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