📖Philip Fisher
Compound Growth Model
Compound growth creates extraordinary long-term returns.
The most powerful force in investing is compound growth. A company growing earnings at 15% annually will quadruple earnings in ten years.
🏠 Everyday Analogy
📖 Core Interpretation
Philip Fisher emphasizes durable business quality over short-term noise. A strong model, real competitive edge, and disciplined capital allocation matter more than quarterly excitement.
💎 Key Insight：Time amplifies the power of growth compounding.
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❓ Why It Matters
Without business-quality filters, investors drift toward stories rather than economics. Durable cash generation is what supports long-term valuation.
🎯 How to Practice
Use a checklist covering moat, management, unit economics, and capital allocation; track long-term cash generation instead of quarter-to-quarter noise.
⚠️ Common Pitfalls
Buying narratives instead of cash-generating economics
Overreacting to short-term operating noise
Ignoring management quality and capital allocation
📚 Case Studies
1
Motorola Competitive Margins (1960)
Fisher analyzed Motorola’s margins versus peers, noting consistent, above‑average profitability despite heavy R&D spending in electronics.
✨ Outcome：Long-term holding produced substantial gains as Motorola’s strong margins supported reinvestment, growth, and resilience through industry cycles.
2
Texas Instruments Concerns (1959)
Fisher grew wary of TI management stretching accounting and promotional claims during rapid growth.
✨ Outcome：He trimmed and eventually exited, later citing it as a lesson on watching for promotional, overly optimistic management behavior.
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