Conscious Investor contains many layers of proprietary
tools. However, since they are combined in such a coherent
way and since they are all supported by systematic training
and support programs, everything is surprisingly effortless.
One of the most important tools in Conscious Investor is
the calculation of the best price to buy a stock to get
your required return under your margin of safety. This tool
is called TARGD.
TARGD refers to the “Target Price”
that we need to pay for our stocks in order to achieve our
minimum annual rate of return. In the above example, in order
to receive a required return of 10% per annum, you must look
to buy the stock at $1.75. If however you wanted to achieve
a minimum rate of return of 15% per annum, then you would
need to pay no more than $1.40 per stock.
In doing so, you are able to establish a "Margin
of Safety" between the economic value of the
business being purchased and the price being paid for it.
By assisting investors to identify
and calculate the differences between price and value of quality
businesses, Conscious Investor turns inevitable stock market
volatility to your full advantage. It also makes it
straightforward to compare a number of stocks and to choose
the one that give gives the most value under your margin of
On the other side, you can also
calculate target prices that measure the over pricing of
a stock. This provides a direct way of solving one of the
biggest worries faced by most investors -- when to sell.
Conscious Investor provides a complete framework to implement
the fundamental rule: sell when you can you see another
investment about which you are confident that you will get
significantly more value for your money.
You will see more details of
how this is implemented in the free Demo
Video Using Conscious Investor
to Buy and Sell at the Right Price.