Philip Fisher is a legendary investor who played a big role in the education of Warren Buffett. Warren Buffett once stated, “I’m 15% Fisher and 85% Benjamin Graham.”
Everyone knows about Graham’s philosophy of value investing, but I believe Fisher’s investment strategy may be a terrific one for investors in today’s fast-moving market.
Fisher believed that one could achieve good results by investing in the stocks of wonderful businesses over the long term. The strongest businesses to own are ones that are “fortunate because they are able,” meaning they have incredible management teams that will bring about terrific results because of their abilities.
These companies don’t rely on favourable market conditions for their success, because they’re known as Being “fortunate and able.” Instead, the management team focuses on doing everything in their power to grow and improve the long-term fundamentals of the business. The company will inevitably rise above its competition because of the smart initiatives made by the management team.
One such company that’s “fortunate because they are able” is Canadian Tire Corporation Limited (TSX:CTC.A). The management team is top notch and has been thinking years ahead of its competition in the Canadian retail space.
The retail sector is in disarray right now. Many brick-and-mortar retail stocks have been in a house of pain, and the management teams are scrambling to find ways to cope. Canadian Tire continues to do well because of the initiatives put forth by management that have driven traffic and same-store sales across many of its stores, such as Sport Chek, Mark’s Work Warehouse, and Canadian Tire stores.
The management team has used innovative technologies to draw customers into its stores, and there’s no question that this strategy has been working. This is why Canadian Tire is thriving while the rest of Canadian brick-and-mortar retailers are on their knees. I believe the management team will continue to find ways to adapt to a changing retail scene, and this is why I think investors can be comfortable owning shares over the next few decades.
There are over 30 customer-satisfaction initiatives underway, and I believe they will continue to drive traffic and same-store sales through the roof over the next few years.
Stay smart. Stay hungry. Stay Foolish.
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Fool contributor Joey Frenette owns shares of Canadian Tire Corporation Limited.