This means that whether a company has high or low stability of earnings is independent of whether the earnings are growing or contracting. In this way the two measures, stability and growth, complement each other in describing qualities of historical earnings.
In this important new book, the highly respected and controversial value investor and behavioural analyst, James Montier explains how value investing is the only tried and tested method of delivering sustainable long-term returns. The Conscious Investor John Price. Or what are the first few sections you dive into? The book: Includes balance sheet methods, dividend discount methods, discounted cash flow methods, price ratio methods, and many others Explains the significance of viewing real value as a combination of a stock's price or market value and its intrinsic value Comes with free access to key functions in the author's Conscious Investor software The Conscious Investor is indispensable reading for everyone with an interest in investing in the stock market, from novices to experienced professionals. It syncs automatically with your account and allows you to read online or offline wherever you are. Then I would follow by searching on key terms such as risk and debt.
Rather, he suggests that stability in return on equity and the payout ratio enable the analyst to estimate stability in the growth in earnings. I have no space here to describe his techniques. First, it critically assesses a range of valuation methods.
Second, it is an accessible case study in the application of quantitative methods to fundamental analysis. Using the conscious investor system, to which he sells subscriptions for a fairly hefty fee, he booked audited returns of No comments:.
Newer Post Older Post Home. Subscribe to: Post Comments Atom. About Me Brenda Jubin A philosopher by training, a trader and investor, a book lover.
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Comments Atom. The experience has not only left a lasting sour taste with prospective retirees, leading many to simply abandon the market place, but it has also transformed large numbers into punters and traders with a shorter-term market focus. Big drivers behind remaining investor interest are now "momentum" and technical charting, not "value" with patience having all but evaporated. The second catalyst is the book itself.
The Conscious Investor is a marvelous and insightful, thorough compilation with encyclopedic quality of known, popular and lesser known methods -even including the obscure- to generate a valuation for corporate equity. It combines the weird and the wacky with the straightforward and the practical. At times, however, the reader is left with inner discomfort, possibly even disappointment as all valuation techniques have one painful conclusion in common: they are all imperfect, one way or the other.
This then leads to obvious questions such as "why exactly did I just read that chapter? Readers who have been reading my personal analyses and observations throughout the years know the answer to that last question is a firm "yes".
Because if you're participation in the market is not aimed at making an extra buck in the next five minutes, then "valuation" might just turn out to be your best friend. But you gotta have confidence and patience too.
Editorial Reviews. From the Inside Flap. The United States is experiencing "the worst financial The Conscious Investor: Profiting from the Timeless Value Approach (Wiley Finance Book ) - Kindle edition by John Price. Download it once. The Conscious Investor covers each of the main methods used to calculate value or return in the stock market, along with descriptions of how and when to use.
This is why I think John Price should consider adding a chapter or two for the next edition, and make it a personalised, passionate recourse of how and why a combination of decent research, a cheap valuation and a good amount of time more often than not will generate returns most market participants can only dream about.
In the absence of such two chapters I think The Conscious Investor comes with a major risk; it risks sapping one's enthusiasm for true and genuine value-investing. As much as the author's drive to explain and document thoroughly, and to display pros and cons, has produced a truly handy investment bible for valuers of corporate equity, it also provides plenty of potential discouragement for the lesser experienced and the not so confident.
I am making this statement as an analyst of financial markets who's equally passionate and convinced that when it comes to investing, valuations do matter, even if that isn't always immediately apparent to those with a shorter-term focus. The information on display is diligent, impartial and well-documented. Those with a similar passion for value-investing can only be grateful for the time and the passion that led to the end result achieved.
A passionate plea that mastering this essential skill in order to become a successful investor is definitely worth the time and effort would make The Conscious Investor an even better achievement. This is one book that will retain a prominent spot on my book shelf.