Insider Buys You Should Pay Attention To

by Bryan Perry | November 28, 2012 9:30 am

Amid a maelstrom of news on the fiscal cliff, Greece, the Israel-Hamas cease-fire — and even the holiday shopping season[1] — you might have missed it.

There has been a surge in large insider stock purchases by corporate officers during the Dow’s 1,000-point selloff across the Oct. 15-Nov. 21 time frame. Below is just a small sampling of some of the recent activity:

My point: Despite all that is going on in Europe, the Middle East and Capitol Hill, there is deep interest from the well-lined pockets of corporate insiders who will spend big dollars on stock purchases when the market provides deep discounts. It simply demonstrates how the super-wealthy think when the market panics: They’re buying.

It goes against the grain for most retail investors, though, which also is evidenced by the wave of emails I receive during market downturns. Most people simply don’t have the stomach for market volatility.

But it’s exactly this kind of behavior that we can all learn from: using broad market weakness as opportunity to acquire assets on sale for reasons that are totally unrelated to the underlying business model.

Bryan Perry is editor of Cash Machine[9], a newsletter focused on dividends and income investing. As of this writing, he did not own a position in any of the aforementioned securities.

  1. and even the holiday shopping season:
  2. KSU:
  3. JNS:
  4. NAV:
  5. AGCO:
  6. AAPL:
  7. JCP:
  8. GLW:
  9. Cash Machine:

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