Abstract
The paper presented is highly significant as it explores the applicability and effectiveness of Warren Buffett's stock value investing theory in China's A-share market. By employing five key indicatorsdividend yield, debt-to-asset ratio, ROE, net profit growth rate, and the 200-day moving average (MA200), the paper attempts to adjust the values of these indicators to construct a model. This model is tested on the Chinese A-share market to verify its universality and effectiveness. Ultimately, the author concludes that the stock value investing theory is practical in the Chinese market, although the numerical values differ significantly from those recommended in traditional Western literature. Specifically, the return on equity (ROE) within a specific parameter range yields better returns, which are a quarter lower than the values mentioned by Buffett; the forecasted net profit growth rate for the coming year shows a slight negative correlation with excess returns within a certain range; and the latest balance sheet debt-to-asset ratio and dividend yield are positively correlated with excess returns within a specific range.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Advances in Economics, Management and Political Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
