Compound Growth Model
"The most powerful force in investing is compound growth. A company growing earnings at 15% annually will quadruple earnings in ten years."
Compound growth creates extraordinary long-term returns.
Read Full Analysis →Philip Arthur Fisher (September 8, 1907 – March 11, 2004) was an American stock investor and author, best known as a pioneer of growth investing. His investment firm, Fisher & Co., founded in 1931, managed client funds for nearly seven decades. Fisher is renowned for his "scuttlebutt" method of research – gathering information about companies by talking to customers, suppliers,...
"The most powerful force in investing is compound growth. A company growing earnings at 15% annually will quadruple earnings in ten years."
Compound growth creates extraordinary long-term returns.
Read Full Analysis →"Companies that consistently invest heavily in research and development create the innovations that drive future growth. R&D spending is an investment in the future."
R&D spending creates future growth opportunities.
Read Full Analysis →"Assess management's integrity, not just competence. Management that misleads shareholders about problems will eventually destroy value for investors."
Management integrity is as important as competence.
Read Full Analysis →Philip Fisher has 3 key principles on mental models. The most important one is "Compound Growth Model" — The most powerful force in investing is compound growth.
Philip Fisher applies mental models through several key principles including "Compound Growth Model" and "R&D Investment Model". These principles guide practical investment decisions and have been tested across decades of market cycles.
Philip Fisher's approach to mental models is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Philip Fisher provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.