The Conscious Investor Method
3 steps to identify great share market investments
First of all, thank you for buying my book!
As you know, my main motivation for writing it was to help fellow investors improve their returns by using the Conscious Investor Method. This methodology is used by Teaminvest members, whom I currently coach, and it has helped both myself and my fellow members significantly improve our returns.
Your own results will depend on how you manage your emotions, how diligently you follow the methodology and of course, market sentiment. Readers should undertake their own due diligence and satisfy themselves in relation to the material presented and any companies discussed.
With that said, you’re on this page because you’re looking for supplementary information that will enrich your understanding of the Conscious Investor Method. So, well done for making it this far and a very warm welcome!
Within the book, I highlight the three key financial statements and the relevant ratios that investors should understand. To illustrate these in practice, I use the case study of Australian vehicle accessory manufacturer ARB Corporation Ltd as their financials are straightforward and easy to understand.
These figures will change twice a year: when ARB present their interim results at the end of December, and then their annual results at the end of June.
To complement your reading, I have compiled a document here containing all the figures used in my book.
In particular, click here for a more tree-friendly 10-page excerpt of the financial statements and the most important figures. I suggest printing this out to help you derive maximum benefit as you work through the book.
To ensure you have ARB’s latest financial statements, I strongly suggest you download their latest reports from their website www.arb.com.au.
Errata
Page 33. Tip. Change 105 to 115
Page 120. The last para, I refer to a business XYZ with a PE of 15, hence an earnings yield of 6.7% and a dividend of 4.0% and suggest that this implies a total return of 10.7%. This could be viewed as double counting the dividend, which is paid out of earnings. It does of course depend on which earnings figure you are referring to. So the company’s book value after the dividend payment will increase by 2.7% pa. The total return (on the simplifying assumption that the retained earnings are invested to produce the same rate of return as the company’s beginning of year book value) will be 4.0% dividend plus 2.7% growth, a total of 6.7% pa.
Page 143. The daily turnover of TNE shares of 740K out of a total number of ordinary shares of 372M should read 0.2% - not 20%. So, 99.8% remain passive.
Page 157. EPS and SPS of ARB are quoted in Table 9 as 1.40 cents per share and 7.642 cents per share: they should be $1.40 and $7.642 respectively
If you have any feedback or further questions, I’d love to hear from you. Email me at keithf@teaminvest.com.au.
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