Research On The Strategy Of Value Investment Based On The Theory Of Traditional Chinese Medicine

Traditional Chinese Medicine(TCM)is an important part of Chinese traditional culture,the theory of which contains rich philosophical ideas.Conducting cross study by combing TCM with value investment can provide new research thinking for the development of "value investment in China".This paper introduces the four methods of diagnosis(observation;auscultation and olfaction;interrogation;pulse feeling and palpation),the Five elements Theory of Traditional Chinese Medicine and the thinking in diagnosis and treatment of TCM for the difficult diseases such as "cancer" and "high blood pressure." Based on the analogism thinking of TCM,the thesis takes the five elements as the principle of division to make a functional analogy between the human body systems and enterprise systems,makes a functional analogy between the human system "heart,liver,spleen,lung,kidney " and the enterprise system "senior management,human resource management,cultural management,product or business management,financial management".Based on thinking of the diagnosis and treatment of TCM,a bottom-up value investment strategy has been established.Taking Buffett investment the American Express Card as a case study,this paper analyzes in detail the scientific rationality of using TCM thinking to the value investment process.And the inspiration of TCM theory to the practice of value investment in China's stock market is expounded too.The "synthesis of the four diagnostic methods" for Tianqi Lithium Corporation of the stock portfolio was conducted.The philosophical thinking based on the theory of TCM is of great help to the cultivation of value investors in the comprehensive diagnosis and treatment of listed companies.It has some guiding significance to the promotion of value investment in China's stock market.