The Conscious Investor: Profiting from the Timeless Value Approach


Praise for The Conscious Investor

"The Conscious Investor is an extraordinarily comprehensive and intensive study of valuation methods. John Price lays out all the approaches to identifying mispriced stocks and systematically details their comparative strengths and weaknesses. The result is a book of exceptional practical value for serious investors."
—Martin Fridson, Global Credit Strategist, BNP Paribas Asset Management; coauthor, Financial Statement Analysis: A Practitioner's Guide

"Every once in a while someone takes the trouble to step back from the noise of investing to renew our perspective. In providing us with the tools to answer the question 'what is it really worth?' John Price has done just that. His advice is not only as timeless as the value-based approach he advocates, it's also refreshingly insightful."
—James O'Loughlin, CEO, JOL Consulting; author, The Real Warren Buffett: Managing Capital, Leading People

"Only someone with Dr. Price's mathematical background could separate story telling from fact when it comes to valuing a stock. His excellent book walks the reader through the different methods of calculating value and does the investing community a great service. This book should be on the desk of every investor."
—Charles Mizrahi, editor, Hidden Values Alert and The Inevitable Wealth Portfolio; author, Getting Started in Value Investing

"Author and financial mathematician John Price is appropriately named to write a book explaining the difference between price and value. So often investors confuse the two terms and unconsciously think that price is equal to value. Readers of this book will never make that mistake and only invest when an asset is trading at a price below its value."
—Robert P. Miles, author, The Warren Buffett CEO

"There may be more to being a savvy and rational investor than can be learned from this excellent book, but not much. John has made a large part of the wisdom of the world's greatest investors accessible to anyone."
—Steve Dalton, Director of Analytics, Tradition Group; Director, Eigensys Ltd; author, Financial Applications Using Excel Add-in Development in C/C++

"Packed with useful tips to improve your stock market results."
—Hewitt Heiserman, author, It's Earnings That Count

John Price is the developer of Conscious Investor®, a software system for investing, based on the stock valuation methods of Warren Buffett. Dr. Price started his career as a mathematician, teaching finance and mathematics at major universities around the world. After publishing more than sixty papers in peer-reviewed journals and two books on mathematics, physics, and finance, he spent a decade evaluating different stock valuation methods. He has appeared on Bloomberg Radio, Fox News, and Bloomberg Television, and has been interviewed by leading financial journals. Dr. Price is a highly regarded speaker and has consulted to major financial institutions, including Bankers Trust.



Chapter 1 What Is Intrinsic Value?

Chapter 2 Price Is What You Pay. . . .

Chapter 3 . . . Value Is What You Get.

Chapter 4 Follow the Money.

Chapter 5 Everything Is Number and Ratio.

Chapter 6 Measuring Value by Taking Snapshots.

Chapter 7 A Bird in the Hand.

Chapter 8 The Joy of Dividends.

Chapter 9 Don’t Get Mad, Get Even.

Chapter 10 PEG and Friends.

Chapter 11 What Rate of Return Can I Expect?

Chapter 12 Please, Sir, I Want Some More.

Chapter 13 Forecasting and the Three Most Important Words in Investing.

Chapter 14 Where Do We Go from Here?

Appendix A Relationship between Return on Equity and Growth of Earnings.

Appendix B Calculations for Discount Methods.



About the Author.