“It is just appalling the nerve strain people put themselves under trying to buy something today and If you are a truly long-range investor, of which I am practically a vanishing breed, the profits are so tremendously greater.”

In this quote, Phil Fisher, a legendary investor and author, emphasizes the value of long-term investing over short-term trading. Here's a breakdown of his meaning:

1. Criticism of Short-Term Trading: Fisher vividly describes the stress and 'nerve strain' that people endure when they frequently buy and sell stocks to make quick profits. He refers to this as a 'small-win proposition,' suggesting that the potential gains from short-term trading are limited and not worth the emotional toll. Advocacy for Long-Term Investing: Fisher contrasts this with his approach as a long-term investor. He argues that holding high-quality investments for an extended period yields significantly larger profits ("tremendously greater") than small, incremental gains from short-term trades.

The rarity of Long-Term Investors: By calling himself 'practically a vanishing breed,' Fisher highlights the unique and valuable perspective of long-term investing in a market often dominated by short-term thinking. In essence, Fisher advocates the crucial role of patience and discipline in investing, focusing on the sustained growth of well-chosen businesses rather than attempting to time the market for quick returns. This philosophy aligns with his broader investment principles, prioritizing understanding a company's long-term potential and holding onto it through market fluctuations.

Disclosure

The information provided in this article is for educational and informational purposes only and should not be considered as financial or investment advice. Investing involves risk, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions. The views referenced in this article are based on the philosophy of Phil Fisher and do not necessarily reflect the views of the author or publisher.

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