📖Philip Fisher
Hold Indefinitely System
Hold outstanding companies indefinitely with three exit rules.
For outstanding companies, the holding period is indefinite. Sell only if: 1) your original analysis was wrong, 2) the company no longer qualifies, or 3) a much better opportunity exists.
🏠 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：A systematic holding framework prevents premature selling.
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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 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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