| Conscious Investor contains
many layers of proprietary tools. The good news is that
due to the hours of work by Professor John Price and the
Conscious Investor team, it is really your choice how much
you want to know about them.
Conscious Investor is like a chauffeur-driven
limousine where the chauffeur knows all about the underlying
features. All you need to do is tell the driver where to go
and everything that is needed is called into action.
Simply put, the Conscious Investor software
and database is like helping you find a needle in a haystack
without all the work.
But for those who want to know more about the
technical details, here are brief descriptions of some of
these proprietary tools and why they are included in Conscious
Investor. We list them in alphabetical order: HGROWTH™,
STAEGR®, STRET™, STRETD® TARG™, and TARGD®.
HGROWTH
HGROWTH is the name of the function that calculates
the average annual growth rate of a sequence of historical
data. It differs from the standard method since it takes into
account all the data and not just the first
and last terms. Other features that make it unique
STAEGR
STAEGR is the function that measures the stability
or smoothness of the growth in earnings and sales. It is the
partner to HGROWTH. HGROWTH measures how fast earnings or
sales are growing or decreasing while STAEGR measures how
smoothly this is taking place. It is pronounced “stay-gar”.
We invest in bonds and and other fixed instruments
because of the certainty of the outcome. STAEGR is a tool
that helps to bring that certainty into the stock market.
Example
of a Low Stability Stock
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Example
of a High Stability Stock
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In 2005, Celadon Group Inc had earnings
stability
(STAEGR) 25.83% and HGROWTH -8.76% over
the past 10 years. |
In 2005, Bed Bath and Beyond Inc
had earnings stability
(STAEGR) 99.06% and HGROWTH 29.56% over
the past 10 years. |
Conscious Investor helps you choose companies
with growth and stability like Bed bath and Beyond on
the right.
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STRET/STRETD
The most important question we can ask as investors
is what return can I expect on my investment under my margin
of safety. This is where STRET and STRETD enter. STRET is
a calculation of the average annual percentage profit or rate
of return from owning the stock.
It is assumed that when the dividends are received,
they are taxed. The remaining funds are then invested for
the remainder of the holding period. The annual interest on
this re-investment is also taxed at the dividend tax rate.
STRETD is the same as STRET except that it is
assumed that the dividends are reinvested by purchasing more
shares in the company.
You can remember the name STRET by thinking
of "STock RETurn".
TARG/TARGD
Sometimes the calculation of the stock return
at the current price as calculated by STRET is too low. TARG
calculates what price you would need to pay to get your desired
return on any stock that you are considering under your margin
of safety.
TARGD is similar except that it is assumed that
dividends are to be reinvested. Together these two functions
fulfil he statement by Warren Buffett that he is willing to
wait indefinitely to buy the stock he wants at the price that
he is willing to pay. TARG and TARGD help each investor to
calculate that target price.
When this is done, investing is much more enjoyable
because now you look forward to the volatility since he may
give you that opportunity to buy (or sell) at your target
price. [ More details ]
Again we emphasize that, since these tools are
combined in such a coherent way and since they are all supported
by systematic training and support programs, everything is
surprisingly effortless.
View
the Free Demo!
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