16 How to Build Wealth Like Warren Buffett 

  Phil Fisher’s Timeless Investment 
  Philosophies, Principles and Questions 

  Phil Fisher’s Eight Investment Philosophies 

  1. Buy companies that have disciplined plans for achieving dramatic long-range 
  growth in profits and that have inherent qualities making it difficult for new- 
  comers to share in that growth. 

  2. Buy companies when they are out of favor. 

  3. Hold a stock until either (a) there has been a fundamental change in its 
  nature (i.e., weak management changes) or (b) it has grown to a point where 
  it no longer will be growing faster than the economy as a whole. 

  4. De-emphasize the importance of dividends. 

  5. Making some mistakes is an inherent cost of investing. Taking small profits in 
  good investments and letting losses grow in bad ones is a sign of abominable 
  investment judgment. 

  6. There are a relatively small number of truly outstanding companies. Funds 
  should be concentrated in the most desirable opportunities. Any holding of 
  over twenty different stocks is a sign of financial incompetence. 

  7. Neither accept blindly whatever may be the dominant opinion in the financial 
  community at the moment nor reject the prevailing view just to be contrary 
  for the sake of being contrary. 

  8. Success greatly depends on a combination of hard work, intelligence, and 
  honesty.