tailieunhanh - PICK STOCKS LIKE WARREN BUFFETT PART 2

Whereas Benjamin Graham emphasized buying securities cheaply and selling them when they become reasonably priced, Philip A. Fisher emphasizes buying fine companies, “bonanza” companies, and just holding onto them. Despite their seeming differences, both men favor conservative investments—held for the long term. | CCC-Boroson 1 1-44 8 28 01 1 26 PM Page 33 CHAPTER 5 The Influence of Philip Fisher Whereas Benjamin Graham emphasized buying securities cheaply and selling them when they become reasonably priced Philip A. Fisher emphasizes buying fine companies bonanza companies and just holding onto them. Despite their seeming differences both men favor conservative investments held for the long term. Graham was number oriented quantitative. Fisher is more of an artist qualitative. Before buying a stock he evaluates the excellence of a company s product or service the quality of management the future possibilities for the company and the power of the competition. Buffett seems to be ambidextrous a disciple of both philosophies an investor both qualitative and quantitative. Not That Fisher Fisher is not to be confused with Yale professor Irving Fisher remembered best for having said in 1929 just before the crash that stocks had seemingly reached a permanently high plateau. 33 CCC-Boroson 1 1-44 8 28 01 1 26 PM Page 34 34 THE INFLUENCE OF PHILIP FISHER Philip Fisher is a money manager and a practical original insightful thinker. Buffett admired his book Common Stocks and Uncommon Profits 1958 and later visited with him. When I met him I was as much impressed by the man as by his ideas Buffett wrote. A thorough understanding of the business obtained by using his techniques . . enables one to make intelligent investment commitments. Reading Fisher one is struck by how much in his debt Buffett is. In fact while Buffett has said that he is 15 percent Fisher and 85 percent Graham the split seems closer to 50 percent-50 percent. Philip Fisher began his career as a securities analyst in 1928 after graduating from Stanford Business School. He founded Fisher Company in San Francisco in January 1931 seemingly not an auspicious time. But it turned out to be exactly right. After suffering two terrible years in the stock market investors were disgusted with their current brokers and willing to