Buffetology's Use in Stock Trading Amid the COVID-19 Pandemic

17 Pages Posted: 5 Aug 2021

See all articles by Dwi Bhakti

Dwi Bhakti

Perbanas Institute; National University of Singapore (NUS); Harvard University - Harvard Kennedy School (HKS)

Hidayat Sofyan Widjaja

Perbanas Institute

Dihin Septyanto

Esa Unggul University

Date Written: July 31, 2021

Abstract

The impact of the COVID-19 Pandemic has affected the whole of human life, including the world capital market and all its problems. COVID-19 has influenced trading patterns in the capital market, both in terms of trade rules that are superstructure and capital market infrastructure itself. Indonesia's economic turmoil is not only caused by the pandemic COVID-19, but also by several financial scandals such as the Jiwasraya, Asabari and several moral hazards by stock market brokers. The moment of capital outrage at the moment is like a honeymoon in stock trading that occurs during an extreme event. Some events that have caused the world capital market to fall deeply, are the Black Tuesday 1988, the monetary crisis in Indonesia and Asia in 1998, the global financial crisis in 2008, and most recently the pandemic COVID-19 phenomenon that began in 2020. The extent to which Buffettology's role in investment decision making by Investment managers in the Indonesian capital market is the aim of the author's research. The main finding of this study is the prospectus of vigilant leader company as a determinant in making investment decisions both in normal situations and in the midst of a pandemic. This research will be very essential for investment and financial decision makers and for the Financial Services Authority (OJK) in Indonesia. This is because the wrong decisions of investment managers, as well as the company's performance with a stock price characterized by Roller Coaster (called saham gorengan) is a special concern for OJK to take decisive action for the sustainability of a healthy and conducive Indonesia Capital Market for investors.

Keywords: Indonesian Capital Market, Buffettology, Trading Stock, COVID-19

JEL Classification: G01, G11, G32

Suggested Citation

Bhakti, Dwi and Widjaja, Hidayat Sofyan and Septyanto, Dihin, Buffetology's Use in Stock Trading Amid the COVID-19 Pandemic (July 31, 2021). Available at SSRN: https://ssrn.com/abstract=3896854 or http://dx.doi.org/10.2139/ssrn.3896854

Dwi Bhakti (Contact Author)

Perbanas Institute ( email )

Jalan Perbanas, Karet Kuningan, Setiabudi
Jakarta, Jakarta 12940
Indonesia

National University of Singapore (NUS) ( email )

1E Kent Ridge Road
NUHS Tower Block Level 7
Singapore, 119228
Singapore

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States

Hidayat Sofyan Widjaja

Perbanas Institute

Jalan Perbanas, Karet Kuningan, Setiabudi
Jakarta, Jakarta 12940
Indonesia

Dihin Septyanto

Esa Unggul University

Arjuna Way North
West Jakarta
Indonesia

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