When to buy and sell?
As a passive investor, its always hard to tell when its time to buy or sell. I don’t have time to watch the market like a hawk nor the access to insights the pro’s have. Even with that insight, lot’s of pros still suck.. So how does an average investor know when to buy or sell? One approach is to follow what the insiders do. This idea is not new, people often suggest doing it, but I am not sure how many of them actually follow this investing strategy. InsiderCow provides a service that allows you to keep track of what the insiders of the company are doing with their shares in real time. Maybe it’s time to test this idea?
| May 2007 | Year-To-Date | 1 Year | |
| InsiderCow Portfolio | 3.03% | 13.04% | 38.42% |
| Nasdaq | 3.15% | 7.84% | 19.53% |
| S&P 500 | 3.25% | 7.93% | 20.53% |
on September 15th, 2007 at 11:44 pm
This is a good, good idea to start with. I would even wonder if you could come up with a strategy where you buy a stock that (1) has meaningful insider buying and (2a) has activists filing 13D’s and buying stock or (2b) where the insider purchases have come after a recent, and sharp, drop in stock price. All this might be tricky to easily backtest though.