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The Original PERT Set of PERT Forms

Before the era of computers, Ralph Seger developed a logical system for tracking the fundamentals of a single company each quarter and a summary sheet for the entire portfolio so that each stock could be followed easily.

Most members of BetterInvesting are familiar with the Stock Selsction Guide (SSG) and the Stock Comparison Guide's (SCG) role in selecting stocks for purchase. For an overview of the SSG, click here.

The role of the SSG is to find stocks with good quality (growth and efficiency in management) at a reasonable price.

Once a few reasonabilly priced, quality growth stocks have been found within an industry, the SCG helps select the best candidate with regard to quality and value. For an overview of the SCG, click here.

The SSG's job was to screen for historical quality, confirm current quality, and aid you in your forecast of future quality. It also aids you in formulating your estimate for valuation by risk (UD/DS ratio) and reward. (Total Return or PAR)

PERT's job is to help you monitor that the company's results for quality (sales, pre-tax profit, EPS, and pre-tax profit margin) are meeting or exceeding your expectations and then monitor valuation for undervalued "buy" situations and grossly overvalued "sell" situations.

The proper use of the PERT forms requires you have used the SSG to find companies with historical, current, and forecast future quality.

In addition to the SSG, BetterInvesting created three additional forms to accomplish this task.

PERT Worksheet A - Quarterly Data for each stock

For each stock in the portfolio one of the three forms is used to collect and update quarterly data and is named the PERT Worksheet A.

PERT B - Annual Data for each stock

The second form of three is used to collect annual data about each stock and is named Pert B.

The PERT Report - Collection of One Line SSG Summaries for all stocks in portfolio

The third form, The PERT Report, is a summary form that collects the quarterly data and annual data from the PERT worksheet A and PERT B forms, valuation data from the SSG, and records this data as a one line summary.

It is this PERT Report that constitutes the main component in BetterInvestings' effort to monitor a portfolio's quality and valuation (i.e., portfolio management).

Additional Computer Generated Forms

With the emergence of the personal computers in the early 1980's these forms gradually became reproduced in electronic format.

With the ease that computers manipulate numbers several other reports became available for the BetterInvestor.

PERT Trend Report - "Trend of the Trends Report"

Additional computer reports include the PERT Trend report which looks at the last two quarters for results of growth that have failed to meet your forecasts for sales, pre-tax profit, and EPS growth.

The idea is that if the PERT Report shows one bad quarter for a company, the PERT Trend report will screen the entire portfolio's list of stock last two quarter's results to see if this is an isolated instance or if this problem has persisted for a second quarter indicating a problem beginning to show a trend.

PERT Summary Report - "PERT on Training Wheels"

A second computer report available is called the PERT Summary Report. This report shows a one line summary of the valuation criteria from the current SSG for each stock in the portfolio. It has been called "PERT on training wheels" because it doesn't contain any information about the current quality of the stock, only buy - hold - sell information. It assumes the person producing the report has already confirmed historical , current, and & future quality with the SSG and the PERT Report.

ToolKit 5 Reports - Defense Report & Offense Report

Two new compputer reports are available in the latest version of toolKit 5.0. They are called the Defense Report and Offense Report. Their job is to draw attention to stocks with defensive problems (sales, Pre-tax profit, or EPS growth rate problems) or offensive problems. (stocks whose price is so far ahead of its EPS that most of the additional EPS growth for the next five years is already present in its current price.