Classes-To-Go! 1A Up, Straight and Parallel: Visual Analysis on the SSG Mary Enright Sioux Empire Chapter Director
BETTERINVESTING NATIONAL CONVENTION Disclaimer The information in this presentation is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, mutual funds, or other securities that may be referenced. 2
BETTERINVESTING NATIONAL CONVENTION When you look at the front of the Stock Selection Guide Is your mantra… 3
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What is a Growth Company? fasterSales and Earnings Per Share are growing faster than its industry and the overall market or economy consistentlySales and Earnings Per Share are growing consistently year after year 5
BETTERINVESTING NATIONAL CONVENTION Why is this Important ? Basis of BetterInvesting methodology Primary measure of QUALITY Analysis of a company is based on future growth Earnings growth is the primary driver of stock prices over the long- term 6
BETTERINVESTING NATIONAL CONVENTION Why is this Important ? Historically there is a strong correlation between “above average” growth and “above average” stock price appreciation 7
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History Plot: Quality? The historical data plot does talk to us about quality Look for consistency of growth Look for enough growth - i.e., do historical (and anticipated) growth rates merit the risk of ownership? 9
BETTERINVESTING NATIONAL CONVENTION Recognizing Patterns “The Bow and Arrow” “The Arrowless Bow” From “Take $tock”, ©Copyright 2001 Ellis Traub – All Rights Reserved 10
BETTERINVESTING NATIONAL CONVENTION Recognizing Patterns “The Rocket” “The Flatliner” From “Take $tock”, ©Copyright 2001 Ellis Traub – All Rights Reserved 11
BETTERINVESTING NATIONAL CONVENTION Recognizing Patterns “The Innocent Bystander” “Coulda Been a Contender” From “Take $tock”, ©Copyright 2001 Ellis Traub – All Rights Reserved 12
BETTERINVESTING NATIONAL CONVENTION Recognizing Patterns “The Disaster” From “Take $tock”, ©Copyright 2001 Ellis Traub – All Rights Reserved 13
BETTERINVESTING NATIONAL CONVENTION Can you sleep at night? 14
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BETTERINVESTING NATIONAL CONVENTION Questions? 16