| Summary: | 碩士 === 國立中山大學 === 財務管理學系研究所 === 106 === This study refers to three financial ratios of Warren Buffett’s stock picking principle to select companies. The three financial ratios used are: (1) The average ROE of the past five years is more than 20%. (2) The earning reinvestment rate is below 40%(3) The P/E ratio is less than 12 times. Taking Taiwan''s listed companies as the research objects, the qualified investment targets were selected year by year, and five benchmarks were selected each year as a one-year investment performance study during the period from 2006 to 2015.
It is often heard from the news media that the company’s revenues have reached a new high record and the stock price has changed in the short term in daily life. Therefore, after selecting stocks out of three financial ratios in this study, we will additionally consider the revenue information, re-screening the five benchmarks for comparison, and exporing what kind of revenue information can be used to stably earn better excess returns.
Finally, after comparing the results generated by various revenue information, the use of three financial ratios to select the investment benchmarks is a more stable way of obtaining excess returns.
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