| Founded in Chinese stock market after nearly 30 years of ups and downs, although created many myths, but we in nearly 20 years the rate of return on the stock market, as Mr Li, the stock market is really sorry to people. With the rapid increase of people’s income and awareness of investment, the asset value have more pressing needs, more and more people join the stock market environment, in the second half of 2014, and in the bull market in the first half of 2015, can not help but appeared to sea turtles, Dr Boyle in succession in the phenomenon of stock market, next to the square, then, how to effectively guide the investors in the stock market to improve benefits and to avoid risk will become a crucial question. Value investing as validation effect in the foreign market highlights the scientific investment philosophy and method should be popularized in China stock market, it respect the market rules and the objective facts, strictly distinguish the boundaries between price and value, is an effective way to improve the income of investment. Because China’s stock market starts late, the system construction is not perfect, insufficient standard trading, market speculative atmosphere, soaring market slump become the norm, then, value investment in China’s stock market mess can also play a role? Investment can be of value and with Chinese characteristics of the stock market violent collisions produce chemical reaction? How the investment philosophy to guide the healthy development of Chinese stock market to run code in the promotion of direction? Emphasis on this, this article will do.Value investing as a way of rational investment, its connotation is that when the stock price is lower than the intrinsic value of the company to buy stocks, when the stock price is equal to or greater than the intrinsic value of the company to sell stock. Intrinsic value assessment, therefore, will be focused on value investment, Mr. Buffett believes that will buy stocks as part of the business, to buy shares of the behavior of the act is to buy a small part of the company, so what makes investors decided that the company will be within a decade or two years to earn money for you, when to buy shares to awake to realize the value of the company, although the company maintained a high-speed growth, although the company’s products sell well in the market, if not accurate assessment of the company’s future, investors are best avoided. Buffett when graham from master to keep investment losses never absolute safety tips, is to buy the price is much lower than the value of the stock, and as far as possible, graham called a margin of safety of price is lower than the value of the part, this is the famous margin of safety rules, buffett also think this is the core of the value investment idea, is the core of investment success, like supermarket sales promotion, product discount is always consumers flock snapped up, this is because the consumer to buy at this price to the higher value products are making cheap, so so simple really, why people forget that in the stock market? Not only that, but the stock rose higher, and the more investors crazy to buy, and the more fierce, the stock rose to wait until the price return, share price plummeted when investors want to run all run out. Buffett is a people who do not like to listen to story, he doesn’t like to participate in the media reports a company’s performance soared in the discussion of future earnings is infinite, but quietly read the information of the company, rational judgment whether the company’s future can maintain sustainable growth, he those who have the core competitiveness of the company, he will be the core competitiveness of image represented as a "moat", is in an industry, the future no matter what company the case for continuing offensive and competition, the company can keep the growth of the performance, the expansion of scale and profit increase, as the company has a solid moat protection, only in this way can investors have more confidence to ensure the future of the company, to investment companies.This paper first describes the current status of China’s stock market, as the research background of this article, the article put forward the deep stock market speculation company malicious bad phenomenon such as encircling money to produce the serious consequences of China’s stock market, to this, the author think that should be promoted in China’s stock market value investment idea, raises the value investment strategy in Chinese stock market to advocate the necessity and timeliness. Secondly, this article system elaborated the profound connotation and the value investment value investment development status at home and abroad, after several generations of summary and analysis of the investment guru, value investment idea gradually mature, and practitioners in the stock market, led by warren Buffett, the accumulated wealth, introduce the meaning of value investment exist. Then this article introduces the analysis of the value investment in China has become the mainstream of the reason and the applicability of the value investment in China’s stock market, then, based on the empirical research on the applicability of the quantitative analysis of the value investment in our country. Then, this paper takes the Erie shares, for example, from the industry situation, business investigation, management ability, study of the performance and core competence, value assessment and margin of safety and risk reveals how to use value investment analysis, including enterprise and related investment advice is given. Finally, the article bring up the applicability of the value investment in China, combined with the actual situation of Chinese stock market is analyzed, and puts forward how to regulate the stock market development to create a good atmosphere of value investing. |
PDF Full Text Request