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Paying attention to market insiders is a shrewd way to discover investment opportunities. For example, many investors closely follow the movements of Warren Buffett with the intent of mirroring his investment strategy.
Being aware of insider trades can help identify what insiders think will happen in the future. It can aid with trade risk reduction, smart investment decision making, and uncovering investment opportunities.
While it isn't advisable to simply mimic another's investment strategy, tracking insider transactions can potentially add value to your own personal investment strategy. By "insiders," I'm referring to CEOs, high level executives, and congresspersons, among others. Insiders often have better practical insights into a company's outlook than the average investor.
A Powerful Tool Discovered
What if you were told that you could achieve direct access to some of the investment moves made by the types of insiders detailed above? In fact, such trades are all public information. But all too often, this information falls well below the radar of the average investor.
The SEC (Securities & Exchange Commission) governs securities trades, and they require legal disclosures of insider trades, ensuring compliance with regulatory standards.
Let me introduce you to Insider Alerts. (hyperlink). It's an app and a website that serves as a powerful tool to track insider investment moves.
How It Works
Insider Alerts is an app and a website that monitors 1,500+ publicly traded companies, tracks 25,000+ trade filings, and provides daily email alerts on the movements of insiders. It directly sources public information from the SEC so that subscribers receive updates on executive transactions & congress trades. As such, it provides you with the ability to capitalize on valuable insights.
Anyone can subscribe to Insider Alerts with a basic subscription for FREE or with a premium membership that costs only $9.99 per month. Once an account is created, notification preferences can be established, and you apply filters based on your personal interests and investment strategy.
For example, if you're interested in Google, or Alphabet, in particular, you can use the ticker search bar with GOOG, and you'll see detail for insider transactions by executives going back as far as 2 years. It details the name of the exec, their position (VP or SVP, for example), how many shares they bought or sold, and the % of their holdings. It also details this same information with respect to investment trades for Google, for example, that are being made by congresspersons. And such insights can be had regarding 1,500+ other publicly traded companies, from Microsoft (MSFT) to Costco (COST).
The Insider Alerts tool also provides such insight pertaining to all trades and unusual trades within a certain timeframe you choose. There are a number of ways to modify the filters and extract the data, with most of it being available with the FREE subscription.
The premium subscription, which is available for only $9.99 per month, includes portfolio monitoring, insider trade alerts, Congress trade alerts, social trends & analytics, and a daily digest of unusual activity. And, of course, the tool continues to evolve to become more robust and more useful. Always keep in mind, however, the 2 Keys to Successful Value Investing - focus on the long-term and buy at attractive prices.
Use this hyperlink to visit and subscribe: Insider Alerts
Being in the know is powerful. But oftentimes, being in the know is beyond our reach. In the case of stock trades being made by insiders such as CEOs, senior executives, and congresspersons, disclosure of these investment moves is required by law. This article by Fortune found that "all insiders beat the market." And fortunately, there's a powerful tool that allows the average investor to readily and easily extract that information.
While insider trades provide valuable insights, no investment is risk-free. These insider trades offer data for informed decisions, but success is influenced by various factors. I would suggest using these updates and alerts as a heads up. But you certainly want to couple these alerts and insights with your own research and investment analysis.
Sign up and visit here to learn more: Insider Alerts
Information provided on this site is based on my own personal experience, research, and analysis, and it is not to be construed as professional advice. Please conduct your own research before making any investment decisions. I am not a professional financial advisor, stockbroker, or planner, nor am I a CPA or a CFP. The contents of this site and the resources provided are for informational and entertainment purposes only and do not constitute financial, accounting, or legal advice. The author is not liable for any losses or damages related to actions or failure to act related to the content on this website.