📖Philip Fisher
Growth at Reasonable Price
Value a stock by its future earnings growth potential.
The true measure of a stock's value is not its price-to-earnings ratio today, but its earnings growth potential over the next five to ten years.
🏠 Everyday Analogy
📖 Core Interpretation
In Growth at Reasonable Price, 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 potential matters more than current metrics.
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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
Holding Johnson & Johnson Through Crises (1990)
Long-term holder owns J&J for its diversified healthcare portfolio and strong management, per Fisher’s criteria.
✨ Outcome：Despite lawsuits, recalls, and market crashes, the stock compounds steadily over decades, validating the hold-forever philosophy focused on quality and innovation.
2
Motorola’s Early Growth (1955)
Fisher invested in Motorola when it was still a small electronics company, recognizing its R&D strength and management quality.
✨ Outcome：Held for decades as it became a major industrial and tech leader, compounding capital at very high rates.
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