Insider trading has been top of mind for the past few months with Galleon and Congressional insider trading blanketing the news. While illegal insider trading is being taken to the woodshed, there’s plenty to do with legal insider trading. By following the smart money, investors can follow the cookie crumbs back to the investing profits.
So, here are 12 ways investors can use insider trading data and information to make better, smarter, investment decisions.
Continue reading “12 ways investors can profit via legal insider trading”
Insider trading (talking about legal insider trading, of course) typically beats the stock market by 10% — per year.
For those of you who’ve been following Tradestreaming for the past couple of years (and read my book), you know that I’m a fan of following the smart money.
By following the tradestream of hedge funds or the activity of corporate insiders, investors can create portfolios and strategies that have at least been proven in the literature to make money.
Insider trading is a treasure-trove of potentially-profitable information. Top managers at their firms are in the best seats to determine the future prospects for their stocks. If they reach into their wallets and buy their firms’ stocks, well, that’s an incredible useful signal.
An insider trading blueprint
There’s been some amazing research into insider trading. Recent studies have found that investors can mimic the returns of insiders to beat the market by 7 – 10% a year.
I wrote the 20+ page, The Harvard Guide to Insider Trading to describe these strategies and provide a quick blueprint to create portfolios comprised of the most useful insider trading.
AND, to teach you how to use insider trading strategies for your own trading/investing.
You can download it freely here.
I hope you like it — let me know (via email or in the comments) what you think.
Investors seem to be more focused on the short term than ever.
You can credit hedge funds and institutional investors having to report performance on a monthly basis. CNBC’s 24/7 coverage of financial news doesn’t help, either.
However we got here, many analysts are calling for a return to longer term frameworks for investing — for investors and managers that run the companies they invest in.
Finance professor, Al Rappaport has been analyzing shareholder value since his first paper on the subject in 1965.
His new book, Saving Capitalism from Short Termism: How to Build Long-Term Value and Take Back Our Financial Future is a clarion call to break out of our current myopia and find a way to focus on long term value.
Rappaport joins us on Tradestreaming Radio today.
Listen to the FULL episode
About Alfred Rappaport
Al is a professor emeritus at the Kellogg School of Management where he taught for many years. He’s the author of numerous other books and papers, many with a focus on maximizing shareholder value.
Even More Resources
Photo credit: eblaser / VisualHunt / CC BY
I wasn’t at Finovate so I can’t be accused of drinking the Kool Aid.
But it seems to me that startups targeting the financial industry are not only interesting again, but downright exciting.
As the winners were announced, I couldn’t help but think that the long-anticipated changes people in the industry (and out) have been waiting for are a lot closer to being reality.
Ultimately, this is about the future of investing, startups, and the $11,000,000,000,000 question.
Couple of themes are emerging from the winner’s circle…
Continue reading “Finovate and the future of financial startups”
Sometimes I get distracted when I’m looking for my next investment — the noise drowns out my ability to identify companies best-positioned for long term growth.
Today’s guest, Greg McCall uses an investment framework that looks for winners by scoring them according to their monopolistic tendencies (makes sense, right?).
In his book, The Monopoly Method: An Insider’s Guide to Navigating Wall Street and Becoming a Better Investor, Greg describes a scoring mechanism that he’s created after 20 years of experience as a hedge fund investor.
In this episode of Tradestreaming Radio, you’ll learn:
- the insider’s view of how equity investing works
- why monopolies make compelling investments long term
- which industries/companies should outperform
- about Greg’s investment scorecard he uses to judge stocks
Continue reading “Investing in monopolies – with Greg McCall”
I wanted to go to Wall Street when I graduated.
Well, at least I thought I did.
It was all super until I had my first interview.
Continue reading “Finding a finance job outside Wall Street”
In Tradestream your Way to Profits, I discuss an insider trading strategy that mimics the investment moves of certain corporate insiders. This video (excuse its cheesiness) is an intro to that strategy.
Intro to an insider trading strategy from Zack Miller on Vimeo.
As Tradestreaming — and our methodology of learning from investing experts — is gaining momentum, other periodicals are taking notice.
I appeared in this quarter’s print edition of the European Financial Review. I essentially wrote about Tradestreaming — how investors are taking advantage of the new media and research tools that social media is enabling.
As regular readers would recognize, I wrote about 3 strategies that investors can employ today to begin making better investment decisions (Ride the Long Tail, Piggyback the Pros, Commune with Experts)
I also included a paragraph about what I think the future has in store for investors: Continue reading “Tradestreaming in the European Financial Review”
Interesting post by SellPuts at Hedge Accordingly about the impact of social investing. Investors have seen an onslaught of new financial startups, research platforms, and tools to share all this.
But, nothing tries new investing tools and strategies like big
movements drops in the stock market.
The article discusses the radical impact of social investing on retail investors, using an car metaphor (beware, money quote): Continue reading “Radical social investing needs parallel educational framework”
Tradestreaming is all about plugging into social media to help investors make better decisions.
I recently appeared (radio) on [email protected] to talk about my book (Tradestream your Way to Profits).
We also had the opportunity to talk about real-life examples how investors are turning to new online tools to aid them in the investing process, some new-ish Internet IPOs and current trends on Internet usage. Continue reading “Making better investment decisions with social media [interview]”