Another Reason Insiders are So Good to follow: Short-Swing Profit Rule
Warren Buffett is fond of saying something like view stock market investing as if you had a ticket punch with only the ability to have ten punches. You’d think long and hard about what you bought before you put that hole in your ticket. He also is noted to say that your third and fourth best ideas are not likely to be as good as your first best idea. When insiders buy stock in their companies they are subject to a very punishing rule known as the Short-Swing Profit Rule. What Does It Mean? The Short Swing Rule is a Securities … Read more