Phil Fisher

Philip Arthur Fisher (1907–2004) was a legendary investor and author of Common Stocks and Uncommon Profits. He is one of the three primary influences on Buffett's investment philosophy, alongside Benjamin Graham and Charlie Munger.

Origin of Relationship

Buffett first sought out Fisher in the early 1960s after reading his work. Fisher's qualitative approach to finding "wonderful businesses" with high growth potential and capable management provided the counterweight to Graham's quantitative, asset-based approach.

Major Milestones

• 1958: Publication of Common Stocks and Uncommon Profits, which Buffett cites as a foundational text.
• 1972: [The See's Acquisition] -> Indirectly influenced the decision to pay a premium for high-quality assets.
• 2004: [Tribute & Synthesis] -> Following Fisher's death in March 2004, Buffett and Munger dedicated significant time during the 2004 Meeting to honoring his legacy and his role in shifting Berkshire from "cigar-butts" to "great businesses."

Strategic Importance

Fisher introduced the concept of scuttlebutt (gathering information from competitors, former employees, and suppliers) and prioritized a company's "business characteristics" over its statistical valuation. Buffett famously summarized his philosophy as being "85% Graham and 15% Fisher," though Munger believes the Fisher/Munger qualitative influence has since become the dominant factor in Berkshire's success.

Primary Source Fidelity

"I sought him out... and he was a very, very original thinker. His first two books... I think they were as good as anything that’s ever been written in the field of investment." — Warren Buffett, 2004 Meeting

"(On the Fisher legacy): If we had stayed in the Graham mode... we would have had a much smaller company with much lower returns. It was the Fisher/Munger influence that moved us into the big leagues." — Charlie Munger, 2004 Meeting (Synthesized)

Connections

• Source: 2004 Meeting
• Concept: Value Investing, Investment Philosophy, Moat