Applicability of Warren Buffett's investment criteria in equity securities trading on the Quito Stock Exchange, Ecuador / Aplicabilidade dos critérios de investimento de Warren Buffett em ações negociadas na Bolsa de Valores de Quito, Equador

Mikel Ugando Peñate, Andrés Wladimir Herrera Manosalvas

Abstract


The Quito Stock Exchange (QSE) through its objective of offering security to investors, has reflected an act based on good corporate governance practices, however, 2% of amounts correspond to shares that are traded nationally, being Ecuador one of the Latin American countries with the lowest amounts traded compared to 8% of GDP. The objective of the investigation is framed in determining if the investment criteria of Warren Buffett have applicability in the negotiations of actions in the QSE, added to this the presumed existence of aversion to risk on the part of the investor, but also the ignorance of the movement of market and securities transactions, with a population that possibly lacks financial education and does not have benchmarks to invest in a seemingly unknown market. The fields of inquiry that have been defined have to do with the buffettology that involves the investment techniques and criteria that have made Buffett the most famous investor worldwide and, on the other hand, the equity certificates of or documents that represent a Part of ownership of the assets of a company that in the future allows you to enjoy the derived benefits. In conclusion, the criteria are partially applicable in an average 72.23% within companies that could be very close to being excellent, with economic, legal and operational barriers that hold back the development of the stock market in the city of Quito.


Keywords


stock exchange, investment, finance, financing, financial market

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DOI: https://doi.org/10.34117/bjdv7n10-148

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