Philip Fisher Quotes

16 Philip Fisher Quotes on Investing

Philip Fisher is often regarded as the pioneer of growth investing. He is one of the most influential investment minds of all time, and his insights remain valuable to many investors even today. His book, Common Stocks and Uncommon Profits, has become a cornerstone of financial wisdom. In this article, we’ll explore some of the most notable Philip Fisher quotes and offer our key takeaways. 


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The Power of Long-Term Thinking

One of the most impactful themes found in Philip Fisher’s quotes is the value of patience in investing. As a staunch advocate of the long-term approach to investing, he believed that success in the stock market requires thinking ahead and sticking to high-quality companies. 

“The stock market is filled with individuals who know the price of everything, but the value of nothing.”

In investing, it’s easy to get caught up in the heat of the moment without analyzing the fundamentals behind a company. This quote reminds us to focus on a stock’s intrinsic value instead of its daily price movements. Rather than chasing trends, assessing a company’s long-term potential and growth within its industry is better. 

“Patience is not just a virtue; it’s a vital ingredient of success in investing.”

This is yet another Philip Fisher quote that emphasizes the importance of giving businesses time to execute their plans and grow. Companies don’t grow overnight, so it’s wise to resist the urge to sell out too early. Real success comes from allowing strong companies to grow over time.

“Time is your friend; impulse is your enemy.”

Fisher often emphasized the value of time in investing, advising against hasty decisions driven by emotions. The key takeaway is that successful investing requires a calm, patient approach and the ability to resist impulsive actions, even during market downturns. 

“I will tell you what I consider to be the most important factors in the selection of stocks: the industry, the quality of the management, and the growth potential.”

Fisher believed in the importance of these three elements when selecting stocks. Strong management and growth potential are vital to future success. Prioritizing industries and companies with exceptional management and high growth prospects. 

Knowing the Business Inside and Out

Another hallmark of Fisher’s investment strategy? The “scuttlebutt method.” This involves gathering insights about a company from employees, customers, suppliers, and even competitors to know the business inside and out. His insistence on thorough research showed this perfectly. 

“The best time to sell a stock is almost never.”

This popular Philip Fisher quote reflects his preference for holding high-quality companies indefinitely. If you’ve done your homework and the company continues to perform well, there’s often little reason to sell. The better you understand the companies you invest in, the more confident you’ll feel about holding them through market ups and downs. 

“Don’t overstress diversification.”

Philip Fisher quotes like this one frequently challenge the notion that diversification is the only way to reduce risks. He was not a fan of spreading investments too thinly as he believed that over-diversifying can dilute your potential gains. Instead, it’s best to focus on quality over quantity–invest in a smaller number of well-researched, high-quality stocks. 

“The idea of investing in stocks without understanding the companies behind them is the same as taking your money to the casino.”

Once again, we see how adamant Fisher is about not investing blindly. He believed understanding the business was just as important as the investment itself. Never invest in a company unless you fully understand its operations and business model. 

Investing in People, Not Just Numbers

Another recurring theme in Philip Fisher’s quotes, albeit less discussed, revolves around the people behind the business. Fisher understood that visionary leadership and the management team’s integrity are as important as financial metrics. 

“I don’t want a lot of good investments; I want a few outstanding ones.”

Fisher believed that exceptional returns come from companies with strong leadership and vision, not just those that are “good.” He valued businesses led by innovative, committed individuals. If you want to feel more confident in your investments, look for companies with passionate, forward-thinking, and innovative leaders. 

“Investors need to understand how to identify and partner with extraordinary people.”

This is yet another Philip Fisher quote that underscores how important it is to identify extraordinary leadership. He encouraged investors to look for qualities like integrity, innovation, and charisma in a leader, as these often signal a company poised for success. Look at the people running the business before you make an investment decision, as the leadership usually reflects the company’s potential. 

“A great company is not just a collection of numbers, it’s the combination of leadership, culture, and vision.”

Fisher believed that a company’s success was shaped by its leadership, values, and vision. Again, this is a reminder that investing goes beyond numbers–investing is about understanding the human elements that make a company remarkable. 

“There is no greater mistake than to take an investor’s behavior as a guide to his judgment.”

Fisher warned against using market sentiment as a measure of a company’s growth. Emotional market reactions should never be your guide when making investment decisions. Instead, rely on thorough research and objective analysis to assess a company’s true potential.

All About Mistakes and Learning

Philip Fisher’s quotes aren’t just about picking winners. He also had valuable insights on how to avoid making mistakes that will cost you, which are deeply relatable for both new and seasoned investors. 

“The greatest investment risk is not in the stock market itself, but in the investor’s lack of knowledge.”

This quote serves as a reminder that ignorance is the most significant risk for investors. Fisher urged investors to educate themselves about the companies they invest in, the industries they operate in, and the broader economic landscape. Continuous learning is the key to making informed investment decisions. 

“It is not the profit margins of the past but those of the future that are important.”

You can definitely sense Fisher’s forward-thinking philosophy in this quote. This reminds you to focus on future growth rather than dwell on your past performance. Successful investing requires identifying opportunities with strong growth potential. 

“A stock is worth what someone is willing to pay for it at any given moment, but its value is determined by the company’s earnings power in the future.”

Fisher reinforced that a stock’s value isn’t based solely on its current market price but on its future earning potential. Always look beyond current market sentiment and focus on future earnings and growth. 

Trusting Your Research and Insights

As a known advocate of thorough research in investing, it’s no surprise Philip Fisher’s quotes also talk about the importance of independent thinking. Here are two of his powerful quotes on the subject:

“To be a successful investor, you must have the courage to follow your own convictions.”

Fisher’s advice speaks to the need for independent thought in investing. Being bold and sticking to your research is key to making long-term gains. Trust your research and insights, even when others are following the crowd. 

“In investing, what is comfortable is rarely profitable.”

Fisher’s quote highlights that successful investing often involves taking calculated risks, especially when investing in innovative or lesser-known companies. Don’t shy away from investments that challenge the status quo if they hold promise for high rewards. 

Why Philip Fisher’s Quotes Still Matter

Philip Fisher was pretty simple and straightforward in his investing philosophy. He was a stickler for patience and thorough research, and this philosophy remains as relevant today as it was decades ago. His emphasis on quality over quantity, the value of patience, and understanding the people behind the business sets a timeless standard for smart investing. 

New and seasoned investors can develop a more disciplined approach to the stock market by following his principles, like avoiding short-term distractions and aiming for long-term growth. These Philip Fisher quotes compress his philosophy into digestible nuggets that continue to inspire investors to think beyond numbers and focus on the bigger picture.

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Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.

Tammy Danan

Tammy is a journalist and creative content writer with over 10 years of experience. Driven by curiosity, her work explores how digital marketing, SaaS, and varied creative pursuits intersect with everyday life.She focuses on creative storytelling and tackles how the search for a more meaningful life is changing the way we work.Tammy will meow at all stray cats, and won't start the day without an iced Spanish latte.

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