| At present,China's economy is undergoing transformation and upgrading,and the capital market system is constantly improving.Compared with developed countries,the proportion of direct financing in China is low,and the development of direct financing,especially equity financing,will be the focus of the future work.Our country's stock market is relatively young and remains a market dominated by speculation.In this context,value investment as a healthy concept should be advocated.In this regard,it is necessary to study the theory of value investment.This paper uses the literature method,comparative analysis method and quantitative analysis method,successively expounds the connotation and significance of stock value investment,sorts out classic theories,introduces the development history of domestic and foreign value investment,and constructs a stock selection strategy.Aimed at the problems faced by our country's stock market,theoretically put forward suggestions for implementing value investmentFirst of all,this paper expounds the connotation and significance.This paper defines the connotation of the stock value investment theory and clarifies the interactive relationship between value investment and the stock market.This paper points out that stock value investment pays attention to the intrinsic value of the enterprise and Marxism also believes that circulation cannot create value,and the value of stock will eventually settle in the current and future value of the enterprise.This paper believes that value investment contributes to the allocation of resources,promotes economic restructuring,improves the corporate governance structure,brings about desirable profitability for investors,and drives money into virtual economy and prospers the stock market.In the next place,this paper sorts out the classical theories.Graham created value investment,put forward intrinsic value,and created an investment method with margin of safety as its core.Williams first proposed a discount algorithm for corporate value.Fisher emphasized the growth of the enterprise and proposed the "Fifteen Requirements Method".O'Neill built the CANSLIM stock selection model and improved the growth investment theory.The modern value investment theory analyzes the enterprise from theperspective of controlling shareholders and industrial capitalists.Buffett absorbed the thoughts of others and emphasize on acting like shareholders.Afterwards,this paper introduces the historical development at home and abroad.Value investment in the United States has gone through four stages from budding,disordered rules,normative development,and institutional era.In China,it has also experienced four stages of speculation prosperity,budding,stepping into,and improved supervision.Subsequently,this paper constructs a stock selection strategy with relative price-earnings ratio.It shows that the strategy can gain excess earnings against ZZ500 and proves that value investment works in A-shares market.Finally,this paper puts forward suggestions for China's stock market.In China's stock market,listed companies have problems such as the good and bad are intermingled,low dividends,large number of retail investors,lack of institutional incentives,and imperfect trading systems.In this regard,this paper proposes that the quality of listed companies should be improved,dividends should be normalized,medium and small investors should be educated,and the proportion of institutions should be increased,improving the trading system. |
