📖Philip Fisher
Avoid Excessive Trading
Avoid excessive trading to reduce costs and taxes.
Frequent trading increases costs and taxes while reducing returns. The best risk management is to buy right and hold, not to trade frequently.
🏠 Everyday Analogy
📖 Core Interpretation
Philip Fisher treats survival as the first objective. Limiting permanent capital loss, controlling leverage, and avoiding single-point failure are prerequisites for long-term compounding.
💎 Key Insight：Trading costs erode returns; patience preserves them.
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❓ Why It Matters
A single large drawdown can erase years of progress. Risk control is not timidity; it is the operating system that keeps compounding alive.
🎯 How to Practice
Define downside scenarios before entry, cap position size, avoid fragile leverage, and maintain liquidity so mistakes remain survivable.
⚠️ Common Pitfalls
Equating volatility with all forms of risk
Oversized positions without an exit plan
Using leverage to compensate for uncertainty
📚 Case Studies
1
Motorola Early R&D Bet (1955)
Fisher evaluated Motorola’s heavy R&D in semiconductors and communications, seeing a pipeline of products and strong technical leadership.
✨ Outcome：Invested and held long term; Motorola became a multibagger as R&D translated into dominant positions in radios and early electronics.
2
Texas Instruments Semiconductor Leadership (1960)
Fisher studied TI’s R&D intensity in transistors and integrated circuits, focusing on management’s ability to commercialize lab advances.
✨ Outcome：Maintained investment; TI’s technological edge drove strong revenue and profit growth, validating Fisher’s emphasis on sustained, productive R&D spending.
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