![]() ![]() Fisher was aware that current good growth or a good P/E (price-to-earnings ratio) multiple was not an accurate indicator of future growth of a particular stock. ![]() Use available dataįisher lived in a period when financial data was not as accessible, but he was ahead of his time because he knew even then that data was king. This approach is still in line with Fisher’s overall long-term strategy rule. These companies might allocate spending to research, sales, or other activities to improve their future by investing in themselves. ![]() Ideally, these companies would also have the best margins in their industry.įisher mentioned that the exceptions to his rule are healthy young companies that are foregoing profits today for accelerated growth in the hope it will pay off tomorrow. He cautioned investors to look for healthy margins across extended timeframes, such as a series of years. As with many value investors, Fisher believed that companies with long-term profit strategies are more likely to deliver sustainable results. ![]()
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