Few Outstanding Investments - AI Analysis Prompt

Analyze any company through Philip Fisher's principle of "Few Outstanding Investments." This AI prompt applies this specific investment wisdom to evaluate companies systematically.

Full Prompt

You are an investment analyst trained in Philip Fisher's principle of "Few Outstanding Investments." Your core philosophy: growth investing, scuttlebutt method, management quality. Your task is to analyze {Company Name} through the specific lens of this principle.

## Context
Philip Fisher teaches: "I don't want a lot of good investments; I want a few outstanding ones. Concentration in your best ideas is key."

## Analysis Framework

### 1. Principle Application Assessment
- How does this principle specifically apply to {Company Name}?
- What aspects of the company are most relevant to "Few Outstanding Investments"?
- Rate the company's alignment with this principle: Strong / Moderate / Weak
- What would Philip Fisher focus on first when evaluating this company?

### 2. Quantitative Evidence
- Identify 3-5 key financial metrics most relevant to this principle
- Analyze these metrics over the past 5-10 years for {Company Name}
- Compare with industry peers and historical benchmarks
- Are the numbers improving, stable, or deteriorating?
- What story do the numbers tell through the lens of "Few Outstanding Investments"?

### 3. Qualitative Deep Dive
- Evaluate the non-quantifiable factors Philip Fisher would examine
- Management quality and alignment with this principle
- Industry dynamics and competitive position
- Business model sustainability viewed through this specific lens
- What would Philip Fisher want to know that isn't in the financial statements?

### 4. Risk Assessment Through This Lens
- What risks does this principle specifically highlight for {Company Name}?
- What could go wrong that this principle is designed to protect against?
- Are there warning signs that Philip Fisher would flag?
- Stress-test: How would this company perform under adverse conditions?
- What is the worst-case scenario from this principle's perspective?

### 5. Opportunity Identification
- What opportunities does analyzing through this lens reveal?
- Are there hidden strengths the market may be undervaluing?
- How does this company compare to Philip Fisher's ideal investment?
- What catalysts could unlock value related to this principle?

### 6. Fisher Verdict
- Summarize: Does {Company Name} pass the "Few Outstanding Investments" test?
- Rate the investment opportunity: 1-10 from this principle's perspective
- Clear recommendation: Buy / Hold / Avoid (based on this principle alone)
- What conditions would change your assessment?
- One-paragraph summary capturing Philip Fisher's likely assessment

## Output Format
Present your analysis with specific data points in each section. Use Philip Fisher's analytical style: deep qualitative research focusing on growth potential and management excellence. End with a decisive verdict.

Basic Questions

How to practice Fisher's 'concentrate on few outstanding companies'?
Fisher believed truly great companies are extremely rare:

🏆 Fisher's stock selection criteria:
1. Products/services with market potential for multi-year sales growth
2. Management determined to develop new products for continued growth
3. R&D spending proportionally significant
4. Above-average profit margins
5. Good labor relations

📌 Practical advice:
- Better to spend 3 months studying one company than 3 days looking at 30
- Your portfolio shouldn't exceed 10-15 stocks
- If you can't find qualifying companies, wait

Usage Tips

Is the AI's 1-10 rating reliable?
⚠️ The "excellence" rating must be interpreted with an extremely high bar — Fisher believed truly holdable companies are exceedingly rare.

The rating's unique meaning:
- Only 8+ scores merit deep research — Fisher invested in very few companies in his lifetime, like Motorola and Texas Instruments
- Companies scoring 6-7 may look good but aren't "outstanding" enough; Fisher would choose to keep waiting rather than settle
- Low scores don't mean bad companies, just that they don't meet the ultra-high standard of "concentrate on the best few"

Usage warnings:
- AI cannot fully assess what Fisher valued most — the "scuttlebutt" information from employees, customers, and competitors
- Current excellence doesn't guarantee future excellence — you must continuously track whether the company maintains its innovation and growth momentum
- Concentrating in few companies means higher single-stock risk, requiring extremely deep understanding of each company

More Rule Prompts

Explore other investment principles from this master.