This is the second part of our “Philip Fisher’s Four Dimensions of Investing” series. The first part was published as part of Value Investing Almanack’s special report in January 2017. I strongly recommend that you read the first part before reading this. If you have already read the first part, it would still help a lot if you could refresh it before moving further with this post.
Fisher is best known as the author of Common Stocks and Uncommon Profits, that has remained in print ever since it was first published in 1958. That’s a proof of timelessness of the book and the lessons it contains.
Fisher belongs to the conservative school of investing but he was a contrarian too. In 1928, when dropping out from a prestigious university was still not in vogue, he dropped out of Stanford Graduate School of Business to work as a securities analyst. Interestingly, he later returned to be one of only three people ever to teach the investment course. He was quite ahead of his time as he specialized in innovative companies driven by research and development. He bought Motorola in 1977 when its business was to manufacturer radios and held the stock until his death. Apart from Motorola, his text includes case studies of companies like Texas Instruments which used to be the bleeding edge technology (a category of technologies so new that they could have a high risk of being unreliable and lead adopters to incur greater expense to make use of them) company at that time.
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