09-05-2017, 03:30 PM
Should We Track Insiders’ and Major Investors’ Purchase?
by valueinvestasia.com
Published May 9, 2017
Are All Share Purchase Created Equal?
People can sell shares for many different types of reasons. They can sell shares for a non-investment purposes such as needing to buy a new house, pay down debt, fund their kid’s university fees, and even just to spend it on leisure.
On the other hand, buying shares generally fall into more distinct categories. Peter Lynch pretty much sums up our thoughts with this saying,
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise”.
This might be an oversimplification, and of course, there might be other reasons (i.e. employee share option plans), but there is true merit in that agreement.
Before going further, let’s start with a general understanding of what insiders and notable shareholders mean:
* Insiders: People with very close relationships with the business, directors, executives, management, any other people with an inside view of the company. Insiders would include repurchase by the company itself (share buybacks).
* Notable Shareholders: Major shareholders with a good reputation and track record
Should We Be Tracking Them?
More details in https://valueinvestasia.com/share-purcha...ted-equal/
by valueinvestasia.com
Published May 9, 2017
Are All Share Purchase Created Equal?
People can sell shares for many different types of reasons. They can sell shares for a non-investment purposes such as needing to buy a new house, pay down debt, fund their kid’s university fees, and even just to spend it on leisure.
On the other hand, buying shares generally fall into more distinct categories. Peter Lynch pretty much sums up our thoughts with this saying,
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise”.
This might be an oversimplification, and of course, there might be other reasons (i.e. employee share option plans), but there is true merit in that agreement.
Before going further, let’s start with a general understanding of what insiders and notable shareholders mean:
* Insiders: People with very close relationships with the business, directors, executives, management, any other people with an inside view of the company. Insiders would include repurchase by the company itself (share buybacks).
* Notable Shareholders: Major shareholders with a good reputation and track record
Should We Be Tracking Them?
More details in https://valueinvestasia.com/share-purcha...ted-equal/
Specuvestor: Asset - Business - Structure.