Investment Theory Of Econometric Research Based On The Value Of Buffett's Methods

With the gradual opening of the financial markets, the completion of split share structure reform, and the gradual maturity of investors'general idea about the investment philosophy in China, the stock market system and the ecological environment get improved gradually. They developed towards a fair, reasonable and regulate direction, which makes it more and more obvious that China's stock market is value for money. As an outstanding representative of value investment, Warren Buffett achieved a spectacular level of investment performance in the past 50 years, and his investment approach has been the object which investors focus on and study.This paper summarizes the current status of researches on Buffett both domestic and international comprehensively in the part of literature review, and holds the idea that the existing literatures tend to focus on Buffett's investment philosophy, principles and other qualitative aspects, and it is difficult for investors to imitate and operate in accordance with methods of Warren Buffett. This article focuses on value investing method system of Buffett-style, a model of value investing, and makes certain expansion on the aspects of financial risk early warning of the system in listed companies, and the general trend on the stock market. Meanwhile, based on the Chinese stock market, it studies the scientific, engineering, and intelligent aspects of the method by the use of quantitative analysis, empirical research and financial engineering research, and sets up a complete the value investment system.The study of this paper finds that some financial indicators can be summarized through the horizontal and vertical quantitative analysis of the financial statements of the listed companies using Buffett's investment methods. A stock selection indicators system with good effect can be gotten by combining the growing stable model built in this paper. By empirical study, it is found that without valuation, the trend of the stocks selected by the adoption of the indicators system continues to outperform in the market.The indicator system can construct a complete financial engineering system, coupled with the assessment of the company's intrinsic value by the use of DCF method and the forecasts on market trend with the method of Delphi. Studies have shown that the financial system based on Buffett's method designed in this paper can select the outstanding stocks. And the returns are significantly higher than the market index.