Testing Warren Buffet's Stock Decission Making Model (A Case Study on Business Index 27 Category Shares for the Period of 2007-2016)

Peneliti

Assoc. Prof. Dr. Ir. Herman S. Soegoto, MBA.

Deskripsi/Abstrak

This research is aimed to evaluate The Waren Buffet's stock portofolio model, which is based on the consistency increase of Earning Per Share (EPS) and Book Value Per Share (BVPS), influences the share price increase of the companies recommended by Business Index 27. The units of analysis used in this research were the shares that can hold their position in the Business Index 27 for 10 years. The data were collected from the financial data of the respective issuer that could be obtained online. To verify the data and answer the research hypotheses, the multiple linear regression analysis was conducted with the help of SPSS version 17.0. The research results concluded that EPS had a positive influence on the stock price changes; however, BVPS had a negative influence on the stock price increase. For companies with consistent year to year EPS and BVPS increase, only EPS had the positive influence on the stock price increase. Key words: Business Index 27, Warren Buffet Stock Portofolio, Earning per Share, Book Value per Share, Stock Price.