Discover Philip Fisher’s ultimate 15-point secret to successful investing – a revolutionary philosophy revealed!

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Philip Fisher’s investment approach, an essential reference

Philip Fisher is one of the most influential investors of the 20th century. By establishing Fisher & Co in 1931, he not only built his reputation on excellence in fund management, but also enabled his clients to grow rich through his exceptional flair for wise investments. His talent for seizing long-term growth opportunities in promising companies is particularly illustrated by his investment in Texas Instruments.

Fisher’s Concept of Informed Investing

Fisher’s approach is based on acquiring and retaining exceptional, high-growth businesses. This strategy seems obvious, but it requires careful attention to understand the intricacies of its philosophy. According to Fisher, it is essential to identify brilliantly run companies, with leaders who are dogged in their pursuit of growth and capable of making that ambition a reality.

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Dividends: A False Friend of the Investor?

Contrary to popular belief, Fisher does not believe that high dividends are systematically synonymous with safety. According to him, these companies often sacrifice the opportunity to reinvest in growth, which can undermine the performance of the stock price in the long term. Instead, he recommends focusing on internal expansion of the company.

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

Managers must encourage product renewal, guaranteeing sustained revenue growth.

3. R&D efficiency

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Research must result in profitable products tailored to consumer needs.

4. Sales Organization Excellence

An effective marketing 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 constantly aim to improve the company’s profits.

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7. Harmonious Employer-Employee Relations

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

8. Strong Professional Relations with Senior Executives

An atmosphere of internal progression and strong leadership is a positive sign.

9. Management Team with Diverse Skills

Over-reliance on a key individual could weaken the company; broader steering is preferable.

10. Accounting Rigor and Budgetary Control

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Strong financial control is vital to effectively manage business growth.

11. Sector Benefits

Identify the company’s specific assets, such as patents or know-how, that differentiate it.

12. Long-Term Vision of Profitability

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

13. Need for Short Term Financing

Sufficient liquidity or good borrowing capacity is crucial to avoid stock dilution.

14. Managerial Transparency

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

15. Management Integrity

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

The “Gossip” Method

To understand a company as a whole, Fisher recommends collecting diverse stories, whether from within the company itself, from its competitors or from other industry experts. This in-depth analysis allows you to make informed investment decisions, taking into account the volatility inherent in financial markets. It is important to emphasize, however, that this analysis should not be considered a substitute for professional investment advice.

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