How many stocks should you own in your portfolio?
If you invest like Philip Fisher, father of growth stock investing, the answer is very few, probably less than 10.
Do you like to own a piece of an innovative business that keeps growing earnings year after year? Would you rather own a few outstanding stocks than dozens of mediocre ones? If so, you need to invest like Philip Fisher: use methods like “scuttlebutt” research to find and buy quality growth stocks at a reasonable price (GARP) to keep in your portfolio for a very long time.
Philip Fisher was a pioneer in growth stock investing and one of the most influential investors of all time. Even Warren Buffett credits Fisher by saying, “I’m 85% Graham and 15% Fisher.” Considering that Buffett puts Graham on a pedestal and says there isn’t even a second place, that says a lot about Fisher’s influence.
Fisher’s seminal work, Common Stocks and Uncommon Profits (1958), outlines his investment strategy. He realized early on that companies growing at high rates would over time produce the highest investment returns. Thus he focused not on simple arbitrage or undervalued established companies like Warren Buffett and Benjamin Graham; instead he bought strong businesses in developing industries including high tech (which Buffett and Graham avoided).
Follow the links below to learn more about Philip Fisher’s investing philosophy, including his “fifteen points to look for in a common stock,” when to buy and sell quality growth stocks, quotes and other information:
