| Summary: | 碩士 === 南臺科技大學 === 企業管理系 === 104 === Taiwan features a complete capital market system. In addition, advances in modern-day technologies enable the public to use the Internet to easily obtain stock-related information from electronic media, newspapers, and magazines. Thus, stocks have become a financial investment channel. In a highly unpredictable stock market, investors all hope to find and invest in stocks that feature high returns, high efficiency, and low risk.
This study emulated experts by using simple financial indicators to identify the value investing strategies adopted by businesses as well as their future “growth.” An empirical analysis was performed for the period between yearend 2009 and yearend 2014, in which portfolios created using the growth and value investing methods were investigated to verify the performance of the two portfolio types at different periods. Subsequently, the investment portfolio that produced superior investment performance was selected.
The empirical results showed that in terms of investment performance, long-term investments outperformed market investments and that the return on investment (ROI) increased significantly over time. By employing financial index ratios used by five financial experts, the optimal growth investing portfolio (Fisher) and value investing portfolio (Buffett) were selected, both of which produced favorable ROI in the long run. Next, rate of return volatility was measured using standard deviation, which showed that value investing portfolios (Buffett) displayed the optimal performance. This verified the situation that higher risks are commonly associated with greater returns. Finally, the Sharpe index showed positive feedback for the risks from rate of return volatility when growth investing portfolios (Fisher) are held for one or five years, indicating that high returns are indeed associated with greater risks.
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