classes-to-go! 1a up, straight and parallel: visual analysis on the ssg mary enright sioux empire...
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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.
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When you look at the front of the Stock Selection Guide
Is your mantra…
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What is a Growth Company?
• Sales and Earnings Per Share are growing fasterfaster than its industry and the overall market or economy
• Sales and Earnings Per Share
are growing consistentlyconsistently year after year
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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
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Why is this Important ?
Historically there is a strong correlation between “above average” growth and “above
average” stock price appreciation
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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?
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Recognizing Patterns
“The Bow and Arrow” “The Arrowless Bow”
From “Take $tock”, ©Copyright 2001 Ellis Traub – All Rights Reserved 10
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Recognizing Patterns
“The Rocket” “The Flatliner”
From “Take $tock”, ©Copyright 2001 Ellis Traub – All Rights Reserved 11
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Recognizing Patterns
“The Innocent Bystander” “Coulda Been a Contender”
From “Take $tock”, ©Copyright 2001 Ellis Traub – All Rights Reserved 12
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Recognizing Patterns
“The Disaster”
From “Take $tock”, ©Copyright 2001 Ellis Traub – All Rights Reserved 13
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Can you sleep at night?
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Questions?
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