Analysis Of Buffett's Stock Options

Value investing is widely practiced in China. As the master of value investing, Buffett and his theories should be carefully studied. Buffett places great emphasis on the study of enterprise's status, and also on the right analysis of man, including investors, enterprise managements. He also emphasize the importance of price to the success of investment.Through the analysis of Buffett's letter to the stockholders, with reference to many books on his life experience and theories, this paper intends to analyze how Buffett invests in stocks and study his works on investment methods.In his letter, Buffett discussed how he select stocks, mainly from three aspects: development prospects, management team and price. This paper is developed in the same way.Chapter one discussed B's basic theories, including the two origins of his thoughts. Buffett emphasizes that investment on stocks is buying that enterprise, so the right analysis of the investor himself, the truth of the fluctuation of the stocks and the margin of safety are all vital to the success of investment. Buffett also emphasized the importance of long-term investment.Chapter two, One that we can understand. This means the very enterprise's business should be easy to be understood, with a consistent operation history. We Introduced Buffett's circle of competences, including banking, insurance, media and consumer products industry. From which we can see how his competences were developed.Chapter three, With favorable long-term prospects. First of all, it should be in a good industry, which can be analyzed from competition and replacement of its products. At the same time that enterprise should...