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There were 18 articles found for your query:
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 What is the significance of the high/low Price to Earnings PE charts?
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.
Each respectiv...
- Why do STRET and STRETD sometimes increase and sometimes decrease when the investment period is increased?
...o the forecast PE ratio. In the longer term, this influence starts to be replaced by the importance of the forecasts of earnings growth and the payout ratio.
For simplicity, assume that there are no...
- What are the main advantages of the STRET/STRETD approach in Conscious Investor?
The following is a summary of some of the advantages of using STRET and STRETD in Conscious Investor:
(1) The Conscious Investor approach using STRET and STRETD provides you with what an investor n...
- What is the purpose of the Scenario Analysis?
... happy with its financials using the Quick Analysis, then it is time to see if it is selling at a profitable price.
We are looking for those companies that still give a reasonable return even under ...
- Why do I often see different PE ratios on different sites and in different publications?
...red to as the Price-Earnings ratio or the Price-to-earnings ratio. In simple terms, it is the price of a stock divided by its earnings per share EPS. The differences occur because of the way that EPS ...
- What if the price has not dropped to my target price?
...first appears. After all, we have put all this effort into analyzing a company, worked out a margin of safety, and then calculated a target price. It can be disappointing if after this we can't take t...
- What should I do when the earnings figures take a drop?
When there is a sudden drop in earnings the problem is determine whether it is just a one-off occurrence (in which case it is likely to be a good buying opportunity) or is it a sign of things to come...
- Do you need a high IQ to be a successful investor?
...hey, Omaha’s Plain Dealer, Newsweek, April 1, 1995)
He has also talked about the importance of temperament as opposed to intellect. “The most important quality for an investor is tempera...
- Is it better to invest in stocks with a low PE Ratio or a high PE ratio?
The PE ratio is defined as the current price divided by earnings per share. You can think of the PE ratio as the amount that the market is willing to pay for $1.00 of earnings per share. For example,...
- Can we trust the earnings figures?
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 what i...
- What would you say is the key secret of Buffett’s methods?
There is no single secret. But one important key is to focus on the fundamental question of what return you can expect, and not on whether the company is undervalued or overvalued according to some t...
- What does Warren Buffett think of forecasts by analysts and market commentators?
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 find a ...
- How should I get started with Conscious Investor?
We recommend that you take a look at our Quick Start Videos. In these videos, Prof Price goes through the basics of how to use Conscious Investor to make quality investments.
The videos are divided...
- What is the purpose of the Safety button in Conscious Investor and the Conscious Investor Wizard?
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 “margin of ...
- What is the Conscious Investor Wizard?
...scious Investor, the Wizard or expert system provides analysis, knowledge and guidance at the touch of a button.
Investment software has come a long way from its origins as a “number crunchin...
- What are STRET and STRETD? How do you calculate them?
...e under reasonable assumptions?" You can even calculate the expected return under different margins of safety.
The output of STRET and STRETD is an estimate of the annualized percentage profit retur...
- What is the DuPont analysis of return on equity?
Subscribers to Conscious Investor know that we put a lot of emphasis on return on equity. We like it be both high and consistent. For many years in the annual report of Berkshire Hathaway, Warren Buff...
- How do I use Conscious Investor to determine when to sell?
The foundation of Conscious Investor is to search for companies with all the signs of an investment that we would anticipate holding for a long time, perhaps even for the rest of our lives. Even th...
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