Speak to competitors: By understanding what competitors thought of a company, Fisher could gauge the firm's position in the market and its competitive strengths and weaknesses. To implement the scuttlebutt method, Fisher would: He believed that to truly understand a company and its future prospects, an investor must dig deeper, collecting and synthesizing qualitative data from various stakeholders. In the realm of investing, Fisher used the term to describe his method of gathering information on a prospective company from a diverse array of sources, well beyond what was available in annual reports and financial statements. The scuttlebutt approach has influenced some of the greatest investing minds, including Warren Buffett, who once described himself as being 85% Benjamin Graham and 15% Philip Fisher.Īt its core, the term scuttlebutt refers to informal talk or gossip. Fisher even asserted that above-average research and development-spending in an industry is a positive indicator, suggesting that management is long-term oriented. His methodology emphasized the significance of intangible assets, such as a company’s innovative capacity and the robustness of its organizational structure. Instead, he pursued businesses with strong management teams, innovative products and services, and the potential for future growth. He believed that a holistic understanding of a company's business model, its competition, and the industry it operates in is crucial for predicting its long-term success.įisher wasn't merely in search of companies offering short-term gains. Fisher emphasized the importance of scuttlebutt or gathering information from various sources like competitors, suppliers, and customers regarding the companies he intended to invest in. His due diligence went far beyond just financial statements. In essence, his strategy can be summarized as "buy and hold," with a strong emphasis on due diligence, qualitative insights, and a concentrated portfolio. Unlike many of his peers who would diversify their portfolios extensively, Fisher believed in investing in a few excellent companies and holding onto them for an extended period. A deep dive into Philip Fisher's investment strategy reveals a steadfast focus on quality over quantity.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |