How Philip Fisher's Motorola Bet Redefined Investment Success

In 1955, Fisher made what would become one of his most iconic investments: Motorola. At the time, Motorola was a relatively small player in the electronics industry, primarily known for car radios and televisions. But Fisher saw something that others missed. He wasn't just looking at the company's current products; he was peering into the future of communication technology.

Fisher's investment in Motorola wasn't a quick decision based on a hot tip or a fleeting market trend. It was the result of his meticulous "scuttlebutt" approach – a term he coined for his method of gathering information from various sources, including competitors, suppliers, and customers. Through this process, Fisher became convinced that Motorola's management had a unique vision for the future of mobile communication.

Now, you might be thinking, "Sure, hindsight is 20/20. Anyone could have seen that mobile phones would be big." But that's precisely the point – in 1955, most people couldn't see it. The first handheld mobile phone wouldn't be introduced until 1973, nearly two decades later. Fisher's investment was based on his deep understanding of the company's potential, not just its current performance.

Over the next two decades, Fisher's faith in Motorola paid off handsomely. The company became a pioneer in semiconductor technology, two-way radio systems, and eventually, cellular phones. By the time Fisher wrote about this investment in his 1980 book "Developing an Investment Philosophy," his initial stake had grown twentyfold.

But here's the kicker – Fisher held onto his Motorola shares for the rest of his life, until his death in 2004. That's nearly half a century of holding onto a single stock. It's like planting an acorn and watching it grow into a mighty oak, rather than constantly digging up seedlings to plant new ones.

This approach flies in the face of conventional wisdom about diversification. You've probably heard the saying, "Don't put all your eggs in one basket." Well, Fisher's philosophy was more like, "Put your eggs in a few baskets, but watch those baskets very, very carefully."

If you're throwing a dinner party, would you rather serve a dozen mediocre dishes or three absolutely spectacular ones? Fisher's approach to investing is like being a master chef who focuses on perfecting a few signature dishes rather than trying to cook everything in the cookbook.

But let's be clear – this strategy isn't for the faint of heart. It requires an incredible amount of patience, conviction, and yes, a bit of luck. It's like being a gold prospector who spends years studying geology, analyzing rock formations, and finally striking a rich vein. Once you've found that gold, you don't just take a few nuggets and move on – you mine that vein for all it's worth.

Fisher's Motorola investment also highlights another crucial aspect of his philosophy – the importance of looking beyond the numbers. While financial statements and metrics are important, Fisher believed that the qualitative aspects of a company – its management, its culture, its capacity for innovation – were even more critical for long-term success.

In Motorola's case, Fisher was impressed by the company's commitment to research and development, its focus on employee training, and its forward-thinking management. He saw a company that wasn't content with its current success but was always looking to the horizon for the next big opportunity.

This approach requires a different kind of thinking. It's not about trying to time the market or make quick profits. It's about finding companies with the potential for sustained, long-term growth and sticking with them through thick and thin. It's like being a farmer who carefully selects the best seeds, plants them in fertile soil, and then tends to them patiently, knowing that the harvest will come in due time.

Fisher's strategy also demands a high tolerance for short-term volatility. During his decades-long holding period, Motorola's stock price undoubtedly had its ups and downs. But Fisher wasn't fazed by these fluctuations. He understood that the stock market is like a voting machine in the short term, but a weighing machine in the long term. His focus was on the company's fundamental value and long-term prospects, not on day-to-day price movements.

In the end, Fisher's investment in Motorola wasn't just about making money – although it certainly did that. It was about recognizing and participating in a company that was changing the world. It was about having the vision to see potential where others saw only the present, and the patience to let that potential unfold over decades.

Sometimes, the path to extraordinary returns isn't about having a lot of good investments, but about having a few truly outstanding ones. It's about finding those rare companies that have the potential to reshape industries and change the world – and then having the courage and patience to stick with them for the long haul.

After all, as another investing legend, Peter Lynch, once said, "The best stock to buy may be the one you already own." Fisher's Motorola investment proves that sometimes, the best investment strategy is simply to plant your flag and watch your garden grow.