無 / This paper investigates the long term performance of Taiwan stock market from 1967 to 2008. We obtain the total return of Taiwan Stock Exchange Capitalization Weighted Stock Index (“TAIEX”) by adjusting cash dividends. Prior to Dec 31st, 2008, the adjusted TAIEX (AdTAIEX) become 16,088.49 is 3.5 times than 4591.23, the TAIEX it reach. Based on annualized rate of return, AdTAIEX has 13.069% greater than 9.743% of TAIEX. Investors not only care about the rate of return of their portfolio, but the real purchasing power they have. Based on correction of inflation, AdTAIEX only has 8.25% annually, with 4.819% erosion by inflation. TAIEX only has 5.07% annually, with 4.673% erosion by inflation. Also, we create a timing strategy according to the varying of past variance that may help “buy and hold”strategy.