- Understanding and Evaluating Future Risks of Businesses [Article]
All businesses face risks that could weaken the continuing success of their operations. There are a number of advantages in trying to understand these risks. For instance, when they are properly und
- What is the Conscious Investor Wizard? [Article]
... extra help and guidance at key points. In Conscious Investor, the Wizard or expert system provides analysis, knowledge and guidance
- What is the purpose of the Safety button in Conscious Investor and the Conscious... [Article]
In 1949 Benjamin Graham, the mentor of Warren Buffett, wrote a famous book called The Intelligent Investor. In it Graham wrote that the three most important words in investing are “
- How are the high and low PE ratios calculated in Conscious Investor? [Article]
Consider a financial year and suppose that the highest and lowest closing prices for a stock are $74.68 and $44.09. This data will be displayed in the Scenario Analysis and the company charts.
- How can I do further analysis of companies? [Article]
Sometimes you might want to make a list of companies that pass through the selection criteria so that you can print them or study them further. The same applies to companies that are in your Watch L
- Can I evaluate every stock using Conscious Investor? [Article]
Warren Buffett says that he can only evaluate a “handful” of stocks and even then only when he uses ranges of values for the input variables. It is the same with Conscious Investor. Putt
- Can you get scuttlebutt on USA companies even if you don?t live there? [Article]
Even though they may not live in the USA, many people still like to invest in USA companies. One of their concerns is getting scuttlebutt on companies that they are considering.
There are a
- What does Warren Buffett think of forecasts by analysts and market commentators?... [Article]
On many occasions Warren Buffett says that he never looks at forecasts by analysts and market professionals.
For example, at the annual meeting of Berkshire Hathaway in 1992 he said, "If we
- What is the purpose of the Scenario Analysis? [Article]
The Scenario Analysis is also called the What-If Analysis. It enables an investor to answer questions such as, "What if the growth in earnings over the next 5 years is only half what it was over the
- The data for some companies seems to be out of date. Why is this so? [Article]
If the data in the Scenario Analysis or the Company Charts seems to be out of date, it is usually one of the following reasons:
(1) The most usual reason is that the company has not releas
- What level of debt is reasonable? [Article]
Debt is usually measured by the debt to equity ratio. Companies with a high level of debt are risky for anyone seeking long-term value, since they are vulnerable if interest rates rise, and to takeo
- What is the Quick Analysis? [Article]
The Quick Analysis is set of questions that guide you to a deeper understanding of the current and historical financial picture of the company. The questions are in six categories: Management, Growt
- How do we deal with all the stockmarket information available these days? [Article]
In this Information Age there is a saying that success comes from being able to manage the available information. Yet even a simple search on the internet may revel 1000s of articles on any topic th
- What is the significance of the high/low Price to Earnings PE charts? [Article]
The Price to Earnings (PE) graphs are a useful tool in the Conscious Investor software that assist you to determine whether a particular stock is currently underpriced or overpriced.
- From time to time it is reported that Buffett has said he can't find any co... [Article]
Warren Buffett regularly says that he can't find stocks that he likes. Then a few months later you find that he has been doing quite a lot of buying in the stock market. More specific points are:
- What is CANSLIM and how does it compare with the Conscious Investor approach? [Article]
There are thousands of different investment strategies and methods. They all have their own strengths and weaknesses. Even Warren Buffett said that before he became a value investor he tried all sor
- What is the best number of years to set as the investment period? [Article]
We are looking for companies with earnings that are growing smoothly and strongly. These features help us to make earnings forecasts with more reliability.
However, even if earnings grow as
- When should I change the earnings per share in the Scenario Analysis? [Article]
In the Scenario Analysis, Conscious Investor automatically enters the Earnings per Share EPS for the past twelve months. This is called EPSttm: earnings per share trailing twelve months. In the USA
- Can we trust the earnings figures? [Article]
We can never trust them completely. That's why we have a margin of safety.
Firstly, if two accountants prepare the figures they will get different results. Secondly, we have to ask ourselves
- How do STRET and TARG work together when selling a share? [Article]
Suppose that you own a stock and it has a current price of $10. Suppose also that in the Scenario Analysis page STRET gives an estimated return of 12%. If you decide that you want to sell the stoc