How To Track Insider Buying
The legendary Fidelity Investments manager Peter Lynch once said, “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
Lynch was famously a believer in fundamental analysis and understanding a company’s product and practices well before investing in it. And as a group, who understands a company’s product, management, and prospects better than its leaders? Investors can legally capitalize on insider knowledge by following public databases that track insider buying.
Indeed, some may say that tracking the buying activities of a company’s insiders is an integral part of due diligence when investing in a company. Here’s how to do it.
- Insider buying,…