📖Philip Fisher
Three Reasons to Sell
Sell only for three specific reasons.
There are only three valid reasons to sell: you made a mistake in your analysis, the company no longer meets your criteria, or you found a much better opportunity.
🏠 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：Disciplined selling prevents emotional reactions.
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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
Early Investment in Texas Instruments (1965)
An investor inspired by Fisher buys Texas Instruments for its R&D strength and secular semiconductor growth potential.
✨ Outcome：Despite volatility and tech cycles, holding for decades compounds returns massively as TI grows into a dominant analog chip maker and dividend aristocrat.
2
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.
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