The name Fisher Investments is widely recognized, yet its precise operations may not be familiar to everyone. Established in 1979, Fisher Investments functions as a global money management firm catering to institutional as well as private clients. However, what returns can investors anticipate? Let's delve deeper into this question.
What is the Fisher investment?
The Fisher investment strategy, crafted by the esteemed investor Phil Fisher, operates on the premise that companies boasting exceptional management teams and robust competitive advantages will surpass market performance in the long run.
Fisher’s framework for analyzing businesses focuses on three key areas: management, competitive advantages, and financial strength. By carefully evaluating these three areas, investors can identify businesses with the potential to generate superior returns.
The Fisher investment strategy has been successful for many investors over the years, including Warren Buffett. In fact, Buffett has said that Phil Fisher was one of the most influential people in his investing career.
If you’re looking to follow in the footsteps of successful investors like Phil Fisher and Warren Buffett, then you need to understand the Fisher investment strategy. By carefully analyzing businesses with a focus on management, competitive advantages, and financial strength, you can find companies that have the potential to generate superior returns.
Benefits
The Fisher investment strategy has a number of benefits. First, it helps investors to identify businesses with strong management teams and competitive advantages. This is important because these are the types of businesses that are most likely to outperform the market over the long-term.
Second, the Fisher investment strategy also takes into account a company’s financial strength. This is important because a company’s financials can provide insights into its ability to generate returns in the future.
Third, by focusing on companies with strong management teams and competitive advantages, investors can avoid many of the traps that lead to poor investments. For example, investing in companies with great products but poor management is often a recipe for disaster.
Fourth, the Fisher investment strategy can be applied to businesses of all sizes. Whether you’re looking at large publicly-traded companies or small privately-held businesses, the principles are the same.
Finally, the Fisher investment strategy has proven to be successful for many investors over the years. If you’re looking for a time-tested investing approach that can help you find businesses with strong long-term potential, then the Fisher investment strategy is worth considering.
Fisher Investments’ Returns over Time
On average, Fisher Investments has achieved an annual return of 11.7% since its establishment in 1979, encompassing both upward and downward market trends, illustrating a notably impressive track record. However, it's essential to recognize that past performance does not guarantee future results.
Looking at more recent developments, the Fisher Growth Fund (FGROX), the company's flagship fund since its inception in 1986, has maintained an annual average return of 14.5%, contrasting favorably with the S&P 500's approximately 10% return over the same period.
Yet, not all of Fisher Investments' funds have performed as strongly. For instance, the Fisher International Equity Fund (FIEX), inaugurated in 1997, has only yielded an annualized return of 8%. Given this disparity in performance, thorough research is imperative before committing to any investment manager.
Furthermore, Fisher Investments' International Equity strategy has exhibited robust returns, averaging an annual return of 10.6% since its inception in 1994, surpassing the benchmark MSCI ACWI ex-USA Index, which has averaged a yearly return of 6.9% over the same timeframe.
Conclusion:
The bottom line is that Fisher Investments has consistently delivered solid returns since its inception nearly 40 years ago. Nevertheless, like any investment firm, there have been fluctuations over time. It's crucial to conduct your own research before entrusting your investments to any money manager.
