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Investment Philosophy of Warren E. Buffettvs Principle and Theory of Finance
Journal
University of the Thai Chamber of Commerce Journal
Publisher(s)
Chulalongkorn University Printing House
University of the Thai Chamber of Commerce
Date Issued
2008
Author(s)
Other Contributor(s)
University of the Thai Chamber of Commerce. Journal Editorial Office
Abstract
This paper explores the investment philosophy of Warren E. Buffett and compares hisinvestment philosophy to the principle and theory of finance. Buffettûs investmentphilosophy comprises applying economic information, not accounting information; takinginto account the opportunity cost; focusing on the time value of money, wealth creation and the alignment of agency problems; and investing on the basis of information andanalysis. Similar to the principle and theory of finance, Buffett employs the concepts ofeconomic value added (EVA), capital budgeting, intrinsic value, and corporate governance.Dissimilar to the principle and theory of finance, Buffett uses a risk-free discount rate toevaluate cash flows and disagrees with the efficient capital market hypothesis (EMH).
ISSN
0125-2437
Access Rights
public
Rights
This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
Rights Holder(s)
University of the Thai Chamber of Commerce
Bibliographic Citation
Wanrapee Banchuenvijit (2008) Investment Philosophy of Warren E. Buffettvs Principle and Theory of Finance. University of the Thai Chamber of Commerce Journal Vol.28 No.1.
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