Customer Quote by Philip A. Fisher
““Conversely, as such a stock rises to, say, 50 or 60 or 70, the urge to sell and take a profit now that the stock is “high” becomes irresistible to many people. Giving in to this urge can be very costly. This is because the genuinely worthwhile profits in stock investing have come from holding the surprisingly large number of stocks that have gone up many times from their original cost. The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.””
About This Quote
Source Book: Common Stocks and Uncommon Profits, 1958
Investors often sell when prices rise, fearing loss of profit, but true value lies in fundamentals, not recent price spikes.
In simple terms: Don’t sell just because a stock is high; focus on fundamentals.
Key Takeaway
Prioritize fundamental analysis over price trends.
Themes
investing
psychology
valuation
Mood
cautious
analytical
Type
advice
educational
When to use this quote
- stock portfolio management
- retirement planning
- wealth building
Key Concepts
fundamentals
market behavior
behavioral bias
Questions to Reflect On
- How can you resist the urge to sell a rising stock?
- What metrics best reveal a company’s true value?
A Different Perspective
Selling on hype can lock in missed long‑term gains.
