Coaching Lyon Annecy » Financetitle_li=Finance and Investmenttitle_li=Sotck exchange » The ultimate secret to successful investing in 15 points finally revealed by Philip Fisher! Dive into his revolutionary philosophy now!

The ultimate secret to successful investing in 15 points finally revealed by Philip Fisher! Dive into his revolutionary philosophy now!

Philip Fisher’s investment philosophy

Philip Fisher is an influential 20th century investor. Founding Fisher & Co in 1931, he excelled in managing investment funds and helped enrich his clients by identifying long-term growth opportunities in promising companies, such as Texas Instruments.

Fisher’s concept of informed investing

Fisher’s investment strategy is based on the acquisition and retention of exceptional, high-growth businesses. However, it is important to understand the nuances of his philosophy. According to Fisher, it is essential to identify brilliantly run companies, with leaders committed to achieving growth.

Dividends are not always secure

Fisher dismissed the idea that high dividends are systematically synonymous with security. According to him, companies that distribute large dividends often have difficulty reinvesting in growth, which can compromise the performance of the share price. Instead, he favored the internal expansion of the company.

Fisher’s 15 selective criteria

Sales growth potential

It is essential to target businesses that show continued or potential increase in sales.

Continuous innovation

Leaders must prioritize innovation to ensure sustained revenue growth.

R&D efficiency

It is important that research and development results in profitable products that meet the needs of consumers.

Sales organization excellence

An effective marketing strategy is essential to ensure the sustainability of the business.

Robust profit margin

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

Maintenance and improvement of margins

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

Harmonious employer-employee relations

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

Strong professional relationships with senior management

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

Management team with diverse skills

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

Accounting rigor and budgetary control

Strong financial control is vital to effectively manage business growth.

Sector benefits

It is important to identify the specific assets of the company, such as patents or know-how, that differentiate it.

Long-term view of profitability

Companies that prioritize long-term growth are more likely to be sustainable.

Need for short-term financing

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

Managerial transparency

Frank communication from management with investors is essential, regardless of the situation.

Management integrity

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

The “gossip” method

To understand a company in its entirety, Fisher recommended collecting diverse stories, whether from within the company itself, from its competitors, or from other industry experts. This makes it possible to establish a precise analysis based on the 15 criteria mentioned above.

This analysis, however insightful, should not be considered a substitute for professional investment advice. It aims to inform the decisions of investors engaged in an in-depth evaluation of companies for their investments, taking into account the volatility of financial markets.

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