Inside Plays Pay Off

Focusing on buying by the top two executives in a given corporation as well as large cluster buying by officers and directors has turned up some solid investment and trading ideas. I have been tracking and testing CEO and CFO purchases for several years now and the results have been spectacular. Over the past five years, the returns have consistently been well above the market with about 75% of the stocks showing gains over the next year or so.

Reviewing the insider buying by the two top chiefs during 2012 has uncovered another winner. During the year, there were 365 occasions where the CEO or CFO purchased more than $50,000 of stock in an open market purchase. On 302 occasions, the stock went higher for a win rate of more than 80%. The average winner went up by almost 70% while the average long trade fell by about 15%. Buying all of them and holding until the end of the year resulted in an average gain of 59%. That is the fifth winning, market-beating year in a row for this strategy....600 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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