📖Philip Fisher
Market Price Is Not Value
Short-term prices reflect popularity; long-term prices reflect value.
The stock market is not a weighing machine but a voting machine. In the short run, prices reflect popularity, not value. But long-term, value wins.
🏠 Everyday Analogy
📖 Core Interpretation
In Market Price Is Not Value, 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：The market eventually recognizes true value.
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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 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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