Yasuharu Securities Co., Ltd. Securities And Investment Strategies

The traditional financial theories, which regard that investors should be rational, risk-averse , able to make best decision upon information occupied and proceed the individual investment behavior according to "most effective principle", still occupies the governance position in the research and practice realm of the securities investment business nowadays. Based on these theories, investors adopt the value investment strategy, increase investment strategy, technique analysis strategy, index investment strategy extensively. However, domestic and international studies discover that investors, including organizational investors, do not always make decision based on rational attitude. Macro-environmental factor, policy and market factor, information occupation factor and listed company factor are the outside factors that influence the investors' behaviors. Subjective factors, such as emotion, personality and mental state should not be neglected too. Some perception deviation, such as "over-confidence", "extensive-fear", "gambling state", "lost-averse mental", exist in the investment behavior. The divide of the equity is china's stock market's special character since its establishment in the entry stage of the market economy. Some laws and rules are not completed. Because of this, the stock market which is full of speculation has lost some original features that it should have and has lowered the efficiency of the investment.Also from the author's own working experience, discovers are found that, under many factors such as the influences from themacro-and-micro-economic environment and the investors themselves, traditional value-based investment strategy have some realistic confinement. The effectiveness of the securities investment is greatly influenced by the market environment, the internal environment of the company and the non-rational behavior of the business personnel. If neglecting to analysis these factors and making decision only based on the traditional value investment strategy, the securities investment can hardly achieve success. Although the financial behavior theory can analysis and recognize the confinement of the investment based on the traditional investment theories, it can not provide feasible solutions for the investment practice. Studying his own investment experience in many years, the author concludes that: establishing some basic investment principles, normalizing the non-rational behaviors of the investors and weakening the unfavorable influences from the internal and external environment of the company, thus founding a strategy, which is a combination of the short-and-medium term investment strategy with the market-value control investment strategy and can be suitable of the company's target and the market environment that is full of speculation and lacking investment opportunities because of the divide of the equity in china's stock market, is a valid way to insure the safety of the company's investment and realize the protection and increase of the value of the company's portfolio.