Discover Philip Fisher’s revolutionary philosophy for successful investing in 15 points! The ultimate secret revealed!

Philip Fisher’s investment method

Philip Fisher is considered one of the most influential investors of the 20th century. By establishing Fisher & Co in 1931, he built his reputation on excellent money management and helped enrich his clients with his talent for wise investments. He has notably invested in promising companies such as Texas Instruments, demonstrating his ability to spot long-term growth opportunities.

Fisher’s enlightened investment philosophy is based on acquiring and retaining exceptional, high-growth companies. He advocates choosing brilliantly run companies, with leaders committed to achieving growth.

Dividends and security

Contrary to popular belief, Fisher does not consider that high dividends systematically guarantee security. He says companies that pay high dividends often struggle to reinvest in growth, which can ultimately undermine share price performance. He prefers to prioritize the company’s internal expansion.

Fisher’s 15 selective criteria

1. Sales Growth Potential

It is essential to target businesses that are experiencing a continued or potential increase in sales.

2. Continuous innovation

Leaders must encourage innovation to ensure sustained revenue growth.

3. R&D efficiency

It is important that research and development results in the creation of cost-effective products that meet consumer needs.

4. Sales organization excellence

An effective commercial strategy is essential to ensure the sustainability of the company.

5. Robust profit margin

Growth must be accompanied by profits, hence the importance of carefully analyzing gross margin.

6. Maintenance and improvement of margins

Foresighted management must result in a constant search for profit improvement.

7. Harmonious employer-employee relations

Valued and loyal employees contribute to the growth of a dynamic company.

8. Strong professional relationships with senior executives

An atmosphere conducive to internal progression and solid leadership are positive signs.

9. Leadership team with diverse skills

Excessive dependence on a key individual can weaken the company; it is better to have broad management.

10. Accounting rigor and budgetary control

Strong financial control is essential to effectively manage business growth.

11. Sectoral advantages

It is important to identify the company’s specific assets, such as patents or know-how, that differentiate it from its competitors.

12. Long-term view of profitability

Companies that prioritize long-term growth are often more sustainable.

13. Need for short-term financing

Having sufficient liquidity or strong borrowing capacity is crucial to avoid stock dilution.

14. Managerial transparency

Frank communication from management with investors, regardless of the circumstances, is important.

15. Management integrity

Management’s honesty with shareholders is a determining criterion for long-term success.

It is recommended to collect various information, whether from the company itself or from its competitors and industry experts, in order to establish a comprehensive analysis based on these 15 criteria. However, it is important to note that this analysis is not a substitute for professional investment advice and is intended solely to inform the decisions of investors who are aware of the volatility of financial markets.