Archive for the 'Buy & Hold' Category
July 13th, 2006
Buffett’s other mentor
BOOK REVIEW: Most people would say the biggest influence on Warren Buffett is Benjamin Graham. But a lesser-known author, Philip …
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Buy & Hold Explained
Not all growth investors are shooting for short term profits. Some, like legendary investor Philip Fisher, who penned the book Common Stocks, Uncommon Profits, are buy-and-hold investors. They look for companies with special characteristics that mean they can keep churning out above-average profits for decades to come, such as an exceptional ability to develop new products and technology. It requires a detailed understanding of a company’s management culture and research and development to nail a long-term growth-stock winner. Arguably Warren Buffett falls into this camp and he was deeply influenced by Philip Fisher’s writing, which saw him evolve from buying stocks based on value, to buying ‘great companies’ at cheap prices and holding onto them forever.
