Case Study: Fisher's Investment in Motorola (1955–1983)

Philip Fisher first bought shares of Motorola in 1955. He held them, with additions, until his death in 2004 — nearly 50 years. When asked why he had never sold, Fisher said he simply never found a better use for the money. The investment, made after exhaustive scuttlebutt research, produced returns measured in multiples of hundreds. It is the defining case study in long-term growth investing.

Why This Matters

Background: Motorola in 1955 was a leading manufacturer of electronic equipment — television sets, car radios, and communications technology for military and commercial use. Fisher visited competitors, suppliers, and customers before investing. His conclusion: Motorola had exceptional management, a culture of research and development that was creating genuine long-term advantages, and a market position in communications electronics that would grow with the electronics revolution he correctly foresaw. The investment thesis was not based on current earnings multiple or book value. It was based on the conviction that management quality, R&D culture, and the secular growth of electronics created a compounding machine worth holding indefinitely.