On one level any one uses the software Conscious Investor could be called a conscious investor. On another level the idea of a conscious investor is based on the concept of investors becoming aware of, or conscious of, what they are investing in.
The term “conscious investor” was coined by Sandy Price and first appeared in an article Conscious Investing: Putting Your Money Where Your Beliefs Are by John and Sandy Price (Investor Journal, April 1999). It is defined as someone who makes it a point to understand the products and services of any company that they are considering and the impact of these products on services on society. Once having done that, they invest in those companies which have products and services that are congruent with his or her own beliefs and values.
The way that the idea of being a conscious investor is integrated into the software Conscious Investor was expressed by Bob Sykes, a subscriber from the UK, “As a programme, Conscious Investor is excellent, but as a philosophy, it is even better. It is a living investment philosophy instead of just a software tool.”
Even though most people may not admit it, a common view of the stock market is that it is made up of stock symbols that have fluctuating prices. Using these prices, you buy and sell the symbols over the internet or via bodyless voices over the telephone.
Some go a little further. They try to link the spiky ebbs and flows of the prices with headlines in the financial media. Or, less generously, with the actions of those “in the know”. The outcome is that stock transactions are more akin to bets than to investments.
Against this background, a conscious investor is an investor who treats the stock market as an opportunity to participate in on-going businesses. As Warren Buffett said, “When I buy a stock, I think of it in terms of buying a whole company, just as if I were buying a store down the street.” Conscious investors look for quality businesses with shares selling at profit-making prices. Our system is set up to scan thousands of companies to make this possible.
As stated above, another part of being a conscious investor is to invest in companies with products and services that you understand and support. Conscious investors look for companies that are congruent with their own beliefs.
When you think of buying shares as the setting up a direct connection with individual companies, then investing becomes more enjoyable. Instead of it being a chore or a duty, something extra that you have to do, much of it becomes an easy part of your life as you go about day to day activities. You notice the number of shoppers in “your” chain of stores or the number of favourable media references to “your” bank.
This conscious approach to investing will make you a better investor. Because you are automatically monitoring “your” company you are more likely to pick up any changes in its activities before they are reflected in their financial reports, press releases, or analyst briefings.
