10 Investment Principles from Filipino Fishermen that are still applicable today date_range 8 ส.ค. 2025
Who is Phillip Fischer?
Philip Arthur Fisher is one of the legendary investors highly esteemed in the global financial industry, particularly by Warren Buffett, who once said, "I am 85% Benjamin Graham and 15% Philip Fisher." Fisher is the proponent of "Growth Investing," focusing on investing in stocks of companies with long-term growth potential, unlike Graham's value investing approach focusing on cheap stocks.
One of the seminal works that revolutionized investment thinking is the book "Common Stocks and Uncommon Profits" published in 1958, which continues to have a profound influence to this day.
Why are Fisher's principles still applicable in this day and age?
Although Fisher passed away in 2004, his investment principles have never gone out of style because of his emphasis on qualitative analysis of businesses. No matter how quickly technology changes, a company's ability to sustain growth remains the key to successful long-term investing.
In the era of AI, Big Data, and economic transformations, many people are looking for strategies that are "secure" and "easy to understand." Fisher is returning to popularity because his concept focuses on fundamentals, goes against the tide, and sees business as a whole.
Principles of Philip Fisher's Investment
Here are 10 investment principles from Filipino fishers that you can apply in today's era:
Businesses should have sustainable growth potential.
One of the key principles that Fisher emphasizes is that businesses must be able to grow in the long term, not just "grow fast," but grow steadily and strategically. For example, businesses with cutting-edge technology or that cater to long-term consumer trends such as clean energy, AI technology, or health.
He recommends that we look at the "business lifecycle" and ask ourselves if this company will still be around in the next 10-20 years.
Excellent management is essential.
Fischer values its management team greatly, viewing "leadership vision and capability" as what will determine the direction of the organization. A good company should have leaders who are transparent, bold in their thinking, decisive, and open to change.
He recommends that investors talk to partners, employees, or individuals associated with the company to assess the characteristics of leaders in detail.
Companies should continuously research and develop (R&D).
Fisher emphasizes the importance of creating new innovations because in a highly competitive world, companies that do not innovate may be left behind. They focus on whether the budget for research and development is sufficient and whether the R&D team has clear achievements or not.
If a company looks ahead and has tangible innovations, that is a sign of good "growth potential".
Profit must be consistent and trending upwards.
The fisher believes that "profit" reflects the health of the business. He recommends considering the profitability over the past 5 years and analyzing whether the company can maintain its profit growth rate or not.
Companies with consistently growing profits often reflect efficient management practices and future growth trends.
Efficient Use of Resources
Fishcher doesn't just look at profit numbers, but he is interested in the "use of profit" such as whether the company uses profits to pay dividends or reinvest it. Fischer prefers companies that "reinvest profits", especially investing back into the business to enhance long-term potential.
He believes that a company that uses profits wisely is one that does not rely too heavily on increased capital or borrowing.
A company must have a long-term perspective.
One of the things that sets Fisher apart is his long-term vision. He doesn't focus on short-term performance, but evaluates whether the company has a clear business plan for the next 5-10 years ahead or not.
Investors should look at whether the company's vision can truly create value in the future or not.
Avoid companies with opaque management.
Fitch warns investors to be cautious of companies that are "good on paper" but lack transparency, such as failing to disclose necessary information or delaying financial reporting.
He recommends investing in companies with good governance, transparent communication, and accountability to shareholders.
Analyzing competitive capabilities
Fishcher prefers companies with a competitive advantage such as cutting-edge technology, strong brands, or extensive distribution networks.
He believes that if a company can "build walls" to make it difficult for competitors to access the market, it would enable the company to sustain profits and continuous growth.
Talking to Employees and Partners (Scuttlebutt Method)
One unique analysis method of Fisher is the Scuttlebutt Method, or "gathering information from the field", such as talking to customers, suppliers, employees, or even competitors to understand the business in depth.
This method helps investors gain information that is not apparent in financial statements and make decisions with more confidence.
Long buy, long hold.
The core principle at the heart of Fisher's philosophy is "Buy and Hold," or long-term investing in well-analyzed stocks. He believes that when you find a good company, you should hold onto it for as long as possible to reap the benefits of compound interest, also known as "the power of compounding."
He does not care about day trading or short-term trends because he sees it as a game of luck, not of knowledge.
Comparing the guidelines of Fischer to Buffet.
While Warren Buffett is known for "Value Investing," he actually credits Philip Fisher for a significant influence, especially in the idea that "if the company is truly good, the price at which you buy is not the issue."
Buffett used to focus on buying "cheap stocks" following Benjamin Graham's approach, but after learning about growth stock investing, he started buying high-quality stocks even if they were not cheap, holding them for the long term, such as Coca-Cola or Apple, which clearly reflects the direction of Fisher.
Stock examples that grow on the Fisher approach.
Companies that align with the principles of Fisher in this era include:
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Apple Inc. - Continuous Innovation, Consistent Profits, Excellent Management
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Alphabet (Google) - The world's top research and development.
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Microsoft - Long-term strategy and high competitive capabilities
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Tesla - Despite fluctuations, there is high investment in R&D and a clear vision.
The importance of quality analysis.
Fisher emphasizes that "numbers" are just half of the story. The other half is the "quality of the business," such as:
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Customer satisfaction
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Employee motivation
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Responsiveness to Change
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Thinking outside the box
Quality analysis is what sets him apart from the average investor.
Common Mistakes of New Investors When Following the Fisher Strategy
Although the principles of Fisher are clear, many people still misunderstand or misuse them, such as:
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Every fast-growing company is thought to have stock growth.
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Not studied deeply enough, buy immediately.
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Look Beyond the Financials Without Using the Scuttlebutt Method
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Lack of patience in holding long
To apply fishing regulations correctly, special attention must be given to "judgment" and "precision".
Benefits of Long-Term Stock Ownership in Fisher
Long-term investing helps by:
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Reduce fees and taxes costs.
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Benefit from Compound Interest
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Reduce stress from fluctuations.
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Gain deeper business insights by making time to learn.
Fisher said, "A good stock doesn't have to be sold if it's still good."
How to practice Fishcher's mindset in real life
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Study the annual report of the company of interest.
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Ask questions to customers, employees, or individuals associated with the company.
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Reading in-depth quality analysis.
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Follow the management and company direction consistently.
Fisher's Perspective on Market Volatility
He does not pay attention to "the market going up or down" in the short term, but instead emphasizes the company's ability to "grow amidst volatility." Therefore, he believes "do not judge the business based on stock prices in the short term."
Principles of Fisher Portfolio
He did not focus on diversification much, but rather on "selecting high-confidence stocks" and holding a limited number. He used to hold only a few stocks, but studied them in great detail, which is the way of investing known as "Focus Investing."
Deep dive analysis of financial statements.
Fisher recommends reviewing past financial statements for several years and looking at trends rather than just numbers.
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Initial profit rate
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Return on Equity (ROE)
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Compound Annual Growth Rate (CAGR)
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Debt to Equity Ratio
Financial planning is not the end, but the beginning of analysis.
Investing in the era of AI and the Fisher concept
Although times may change, the principles of Fischer are still applicable to businesses in AI, SaaS, or other technologies because what matters most is:
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Vision
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Innovation
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Growth
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Competitive Ability
--- Tips for new investors 1. Start by setting clear financial goals. 2. Educate yourself about different investment options. 3. Diversify your portfolio to manage risk. 4. Stay updated on market trends and news. 5. Consider seeking advice from a financial advisor. 6. Be patient and disciplined in your investment approach. Investing can be complex, but by following these tips, you can set yourself up for success in the long term.
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Do not rush to invest in every stock that appears to be growing.
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Thinking from a "business owner" perspective is not just for traders.
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Pose the question: Will this company still be around in 10 years?
Filip Fisher's famous quote: "The only way to do great work is to love what you do."
"The stock market is filled with individuals who know the price of everything, but the value of nothing."
"The stock market is full of people who know the price of everything, but the value of nothing."
Fischer and ESG concepts
Although not explicitly stated in his time, Fisher's principles align closely with the ESG (Environmental, Social, Governance) framework, as he emphasized businesses that grow sustainably, transparently, and with social responsibility.
Lessons from the book "Common Stocks and Uncommon Profits"
If you're going to read just one volume of Fischcher, it has to be this one because it is packed with:
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15 Points to Consider Before Buying Stocks 1. Company's financial health 2. Growth prospects 3. Industry trends 4. Competitive landscape 5. Management team 6. Valuation 7. Dividend yield 8. Debt levels 9. Market sentiment 10. Regulatory environment 11. Economic conditions 12. Analyst recommendations 13. Earnings history 14. Risk factors 15. Long-term viability
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Analyzing Scuttlebutt Methodology
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The strategy is truly long-lasting.
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Investor's Non-Conformist Perspective
The success of Kenneth Fisher
His son, Kenneth Fisher, is also a renowned investor and writer. He continues his father's principles through books and managing Fisher Investments, overseeing billions of dollars.
Summary: 10 Principles to Wealth
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Choose a business with long-term growth potential.
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The management team must have vision and transparency.
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Continuous research and development.
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Profit must grow steadily.
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Utilize profits efficiently.
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Look at the long term, not the short term.
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Avoid companies that lack ethics and integrity.
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Competitive advantage analysis
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Utilize the Scuttlebutt Method to gather in-depth information.
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Hold on and be patient with quality stocks.
Summary
The investment principle of Philip Fisher remains powerful in a world full of uncertainties because it emphasizes on business quality, growth potential, and long-term focused shareholder value.
If you are looking for a safe, simple, and long-term investment option, this is one of the ways to stay relevant and suitable for the AI and the new economy era.
FAQs Thank you.
Who is suited for fishery investments?
Suitable for long-term investors looking for growth through quality stock accumulation. Not suitable for short-term profit seekers.
Are fishing guidelines still applicable in the age of AI?
Achieve 100% because it focuses on quality of business, which does not depend on technology but on fundamental management.
How long do fishers hold stocks?
Some of them he held for decades, such as his stake in Motorola, which he held for over 20 years.
Do you need a deep understanding of financial statements?
Basic understanding is important, but prioritize "quality factors" over just numbers.
Is investing in Fisher the only way to buy technology stocks?
Not necessary. Stocks in the health, energy, or consumer products sectors are eligible if they meet the criteria.
Do you have any book recommendations?
"Common Stocks and Uncommon Profits" by Philip Fisher is a must-read.
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