Phil Fisher was a legendary investor who pioneered the concept of growth investing. He wrote a book called ‘Common Stocks and Uncommon Profits’ in 1958, which outlined his investment philosophy and strategy¹.
Fisher’s stock selection process was based on qualitative factors rather than quantitative metrics. He looked for companies that had strong competitive advantages, innovative capabilities, long-term growth prospects and honest and capable management teams¹².
He also used a method called the **scuttlebutt method**, which involved gathering information about a company from various sources, such as customers, suppliers, competitors, employees and industry experts. He believed that this method could help investors discover hidden gems that were not well-known or appreciated by the market¹.
To help investors identify such quality growth companies, Fisher devised a **15-point checklist** that covered various aspects of a company’s business, such as products, markets, research, sales, profits, margins, labour relations, executive compensation and shareholder orientation²³. He suggested that investors should only invest in companies that met most of these criteria.
Fisher’s stock selection process was influential and admired by many investors, including Warren Buffett, who considered Fisher as one of his mentors. Fisher’s approach is still relevant and useful for investors who seek long-term growth opportunities in the stock market.
(1) How to pick stocks the Philip Fisher way | Value Research. https://www.valueresearchonline.com/stories/50550/how-to-pick-stocks-the-philip-fisher-way.
(2) stock picking: Fisher’s 15-point checklist to select quality stocks …. https://economictimes.indiatimes.com/markets/stocks/news/fishers-15-point-checklist-to-select-quality-stocks-that-can-deliver-big/articleshow/79693854.cms.
(3) Common Stock Checklist from Phil Fisher | Old School Value. https://www.oldschoolvalue.com/investing-strategy/common-stock-checklist/