I stumbled over an interesting little survey and the results are very interesting. The question was “What is the primary reason for executives to buy shares of their own company?”.
– Over 40% see sales, earnings and/or cash-flow increasing
– Over 32% see their sock prices rising
While not every insider is also a good investor most of them do pretty well. Of course, they have access to information that the usual investor does not have or get to them earlier than others. So, when executives and managers do well, why not follow these leaders? Buy when they buy!Insiders have to register their purchases (and sales) and have to make them public.
Sven Fransssen