With Conscious Investor will I have to
plough through hundreds of shares to determine whether or
not they are good investments?
Investor is a simple tool that allows you to scan the
entire stock market for quality companies trading at profitable
prices. It will enable you to eliminate the majority of
stocks from consideration and provide comprehensive information
on the quality companies at your fingertips.
can't I simply rely on my broker's "buy" recommendations instead
of buying Conscious Investor?
Increasingly, investors are taking their decision making
into their own hands. Generally they have been disappointed
with the results that have been getting from their brokers,
they are put of by the lack of objectivity of the analysts
and media reports, or they simply like to be more in control
of their own finances.
often hear from people who have lost a small fortune relying
on brokers. When these clients see the quality or the
valuation of the stocks that they were recommended, they
are usually very upset.
of the Conscious Investor approach as the "McDonald's
of Stock Analysis" because it can be applied consistently
to any stock, allowing you to reach conclusions about
companies with confidence. So our approach delivers the
reliability and dependability that investors desire for
making rational decisions about both buying and selling
am past using newspapers, tipsters, gurus, advisers etc,
all of whom have failed me. How is Conscious Investor different?
Investor is a simple, yet comprehensive, investment tool.
It is built on investment principles that have been proven
over time, through experience, and by extensive backtesting.
These principles are incorporated using proprietary methods
developed by Professor Price.
is Conscious Investor different from other fundamental software
packages on the market?
fundamentals-based packages on the market are really mixtures
of various ideas. In an attempt to attract as many subscribers
as possible, they include all sorts of methods and approaches.
The results are a mish-mash of ideas that leaves the subscribers
confused about what they should do or should be looking
contrast, Conscious Investor contains crystal clear selection
procedures based on rational, time-tested principles for
both buying and selling.
second difference is that Conscious Investor contains
proprietary tools developed over decades by Professor
Price. It is not just a simple screening system based
on a few standard ratios. It is a genuine quantum leap
in the world of investing.
this way in a few minutes you can weed out 95% of the
stocks as “wealth hazards." These are stocks
with various weaknesses that limit their possibility of
being successful. At the same time, Conscious Investor
locates those great companies selling at profitable prices
to help you outperform the market.
third difference is that Conscious Investor is designed
for investors at all levels, from novices to seasoned
professionals. It can even be used as a “black box”
by simply investing in the stocks that come through the
Conscious Investor rely on the PEG ratio for stock valuation?
are various simplistic tests available such as the PEG
ratio (PE ratio/Growth rate). However, even as a rule
of thumb, such tests are far too naive to be used when
investing your dollars. They are not used in Conscious
Conscious Investor applies a world-class valuation methodology
developed by internationally acclaimed financial mathematician
- Professor John Price. John Price's intellectual property
is the first to truly allow investors to fairly choose
stocks based upon a robust Buffett-style methodology.
Price has undertaken large-scale studies into his approach
and proven that there is an extremely high correlation
between his methodology and total stock returns. The same
cannot be said for simplistic valuation methodologies
such as the PEG ratio.
a Conscious Investor have invested in USA companies such
as Enron and WorldCom or Australian companies such as One-Tel
people lost large amounts of money through buying stock
in USA companies such as Enron and WorldCom or Australian
companies such as One-Tel and HIH. In these cases accounting
irregularities and the illegal behavior of management went
on for years before it was uncovered. When it was uncovered
there was a huge drop in price and it was too late for anyone
holding stock in them to get out without losing most of
many people are nervous about getting caught in such a situation
talking about Conscious Investor we usually focus on the
side of finding great companies selling at profitable prices.
But there is another side, namely how the filters would
have blocked such companies as those we just mentioned
you a practical example, we list some of the reasons why
One-Tel and HIH not have passed standard Conscious Investor
simple terms, the PE ratio is the price of a stock divided
by its earnings per share EPS. The differences occur because
of the way that EPS is calculated. There are three main
methods leading to three different PE Ratios.
per Share EPS
PE Ratio or PE Ratio (ttm)
of reported company earnings over the last twelve
of reported company earnings for the past six months
and estimated earnings for the next six months.
analysts’ forecast of next year's earnings
beware—their names are not standard. For example,
the central PE ratio is sometimes referred to as the current
PE ratio. Or simply the PE ratio which shows how much
we have become dependent on analysts’ forecasts.
Conscious Investor we want to be independent of earnings
forecasts. For this reason we use the trailing PE ratio.
variation arises because of differences between the protocols
used by different data suppliers as to what should be
included in earnings and what should be excluded. And
no matter what the actual method, there is the issue of
the quality of earnings as discussed in The Conscious
Investor Approach. This is why it is vitally important
to always have a “margin of safety.”
ratio on its own means nothing. What counts is the PE
ratio compared to the future growth of earnings. A PE
ratio of 3 could be too high for some stocks while a PE
ratio of 35 might be too low for others.
comes from finding stocks for which you have confidence
of a fairly high rate of growth of earnings compared to
their PE ratio.
investors focus on stocks with PE ratios above average,
others focus on stocks with PE ratios below average. The
former are often called growth investors, the latter are
called value investors.
the use of value in front of the word investor is redundant.
If you are an investor and are not interested in value,
what are you doing? With Conscious Investor we are looking
for value whether it has a high PE ratio or a low PE ratio.
you go to the “what if” scenario stage, then
it is important to put in PE ratios that are acceptable
in terms of your own “margin of safety” (we
teach our clients how to do this). This tool allows us
to look forward rather than looking just at a company’s
Investing provides general advice and information, not individually
targeted personalised advice. Advice from Conscious Investing
does not take into account any investor’s particular
investment objectives, financial situation and personal
needs. Investors should assess for themselves whether the
advice is appropriate to their individual investment objectives,
financial situation and particular needs before making any
investment decision on the basis of such general advice.
Investors can make their own assessment of the advice or
seek the assistance of a professional adviser.
entails some degree of risk. Investors should inform themselves
of the risks involved before engaging in any investment.
Investing endeavours to ensure accuracy and reliability
of the information provided but does not accept any liability
whatsoever, whether in tort or contract or otherwise, for
any loss or damage arising from the use of Conscious Investing
data and systems. Past performance is not necessarily indicative
of future results. Information and advice provided here
is not an offer to buy or sell securities. View
the full Disclaimer.