📖Philip Fisher
Don't Sell on Price Alone
Don't sell great companies just because the price rose.
A stock that seems too high in price can still be a good hold if the company's growth prospects remain outstanding. Never sell just because the price has gone up.
🏠 Everyday Analogy
📖 Core Interpretation
In Don't Sell on Price Alone, Philip Fisher focuses on the gap between price and value. Returns come from paying less than what a business is worth, not from guessing short-term market moves.
💎 Key Insight：Growth justifies premium prices for outstanding companies.
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❓ Why It Matters
Ignoring valuation turns even good companies into poor investments. Overpaying compresses future returns and leaves little margin when assumptions are wrong.
🎯 How to Practice
Estimate intrinsic value with conservative assumptions, set clear buy ranges, and act only when price offers a meaningful discount with acceptable downside.
⚠️ Common Pitfalls
Confusing a low price with true cheapness
Using one metric without business context
Overly optimistic assumptions that erase margin of safety
📚 Case Studies
1
Motorola Competitive Erosion (1965)
Fisher favorite Motorola faces rising Japanese and U.S. competitors in semiconductors and consumer electronics, compressing margins and weakening its technological edge.
✨ Outcome：Applying “three reasons to sell,” an investor trims the position as its leadership wanes, reallocating to stronger growth franchises.
2
IBM Structural Weakness Realized (1993)
IBM, once dominant in mainframes, struggles with PCs and services transition. Market share declines, culture resists change, and earnings disappoint repeatedly.
✨ Outcome：Using Fisher’s criteria, an investor sells as it becomes clear IBM’s advantages eroded, later redeploying into emerging technology leaders of the 1990s.
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