many business ideas come out of left field and a Sydney
based operation modelled on the world’s most
respected money maker is no exception.
But the Oddness of this
story deepens when you consider it hails from the
halls of academia.
In fact, it was George Bernard Shaw and even George
would have been impressed with the efforts of John
Price to create his Conscious Investor business.
Based on the investment
methods of the “Sage of Omaha” Warren
Buffet, the business aims to cash in on the explosion
of investors chasing shares nowadays.
Professor Price has developed
a unique software program that follows a decade of
dedicated research and testing of Buffets investment
But for those who do now know Buffet,
think the high flying Gordon Gekko character from the movie
Wall Street meets accountant.
Buffet’s money creating credentials
were summed up by US magazine Business Week recently. If you
had put $10,000 into Berkshire Hathaway, Buffet’s investment
vehicle, when he bought control of it in 1965, you’d
have $51 million now. If you had punted the money on the Standard
and Poor’s 500-stock index, you would have pocketed
“Simply, I developed the
Conscious Investor software to enable investors to succeed
in the stock market,” Professor Price said.
“Conscious Investor uses
financial hurdles to eliminate companies that may, for example,
have risky levels of debt, a history of unstable earnings
or consistently low returns to equity.”
The software filters company financial
information from the Australian and American stock market
and generates a selection of top quality companies that a
Buffet-like investor would consider.
The goal was straightforward. “Not
only are you left with a comprehensive list of quality stocks,
the program also allows you to determine the right price to
pay for them,” he said
Professor Price is a visiting professor
at the University of New South Wales, but has always had a
penchant to combine teaching and researching with excursions
into the real world. In the past, he has developed large-scale
risk systems for Bankers Trust and a futures trading system
for the Australian Wool Board.
Professor Price said that the Conscious
Investor business was a natural consequence of him being a
mathematician and a computer programmer. “I didn’t
do it to create a business, but it was always in the back
of my mind that we could.
He now employs six staff, has a
Sydney CBD office, 2000 subscribers, and he exports to 25
Professor Price said that he had
written to Mr Buffet to explain what he was doing but had
not received a reply. “I was not surprised,” he
said. “He is very secretive.”
John Price is CEO of Conscious
Investing. Email email@example.com.