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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BETTERINVESTING NATIONAL CONVENTION

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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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

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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

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?

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Questions?

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