Also popularly regarded as the “Father of Growth Investing” on Wall Street, Philip Fisher was a prominent US stock market investor and author whose primary goal was always to pick quality and sound stocks based on thorough research and long-term investment plans.
Philip Fisher famously said that he didn’t need to make many good investments in his life, but he wanted a few excellent ones, highlighting the growth investing veteran’s mindset when picking stocks.
“I don’t want many good investments, I want a few excellent ones,” said Philip Fisher.
Fisher, who authored the famous book ‘Common Stocks and Uncommon Profits’ died on March 11, 2004, but his iconic quote about finding a few excellent investments comes to mind at a time when stock market investors are often looking for investments that generate good returns.
What did Philip Fisher mean?
Philip Fisher has always been a proponent of thorough research, focusing on multiple investments, long-term planning and quality asset management, among other things, in his investment journey.
This sense of deep, quality and research-based investment tactics is what made him famous in the stock market and among the readers of his book. Fisher’s investment ideology is designed to help investors make informed and smart investment decisions.
What Philip Fisher actually meant by this quote was that while diversifying investments has its benefits, the idea of concentrating on a select few stocks was his approach.
The quote, which was actually taken from his book, mentioned that Fisher believes that it is better to have a few excellent investments than to have a lot of good ones. However, he also stressed that all such stock picks should have a moat and be high-quality businesses.
Philip Fisher said this investment strategy helps investors think and allocate their resources effectively, while also being easy to monitor.
Patience in investing
Fisher, like billionaire Warren Buffett, also advised investors to hold on to stocks that have been well-researched, giving them time to compound their value to generate massive returns.
Fisher has another famous quote that says, “If the work has been done right in buying common stock, the time to sell it is almost never.”
The American investor’s advice comes to mind when looking at the context of the Indian stock market, where long-term investments have the potential to benefit from economic growth and market development in an emerging economy like India.
Disclaimer: This story is for educational purposes only. Opinions and recommendations expressed are those of individual analysts or brokerage firms and not of Mint. Investors are encouraged to consult with certified professionals before making any investment decision, as market conditions can change rapidly and circumstances may vary.