"insider buying index"

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"insider buying index"

Postby xram » Fri Apr 05, 2013 1:42 pm

http://www.forbes.com/sites/etfchannel/ ... r=yahootix

article above wrote:A look at the weighted underlying holdings of the Vanguard Small-Cap Value ETF (AMEX: VBR) shows an impressive 11.4% of holdings on a weighted basis have experienced insider buying within the past six months.


Any studies show these reports are meaningless? Just curious.
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Re: "insider buying index"

Postby MN Finance » Fri Apr 05, 2013 1:47 pm

I don't have reports but higher than normal levels of insider buying is generally bullish whereas insider selling does not indicate anything positive or negative.
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Re: "insider buying index"

Postby xram » Fri Apr 05, 2013 1:50 pm

Seems like this would be an interesting topic for one of the bloggers/experts like Rick Ferri or Larry Swedroe. Any correlation between insider index and future returns? They could probably crank this out in about 5 minutes. Chop-Chop :happy
VTI, VBR, VTWV, SCHH, VXUS, VEA, VWO, VSS, FM, VNQI, VBTLX, VFITX, SCHP, VWITX, IBONDS, EEBONDS, EF(EverBank), UTAH-529
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Re: "insider buying index"

Postby G-Money » Fri Apr 05, 2013 1:53 pm

In all sincerity, I don't know whether to be impressed by that statistic or not. I understand "insider buying" is supposed to be a sign that management is bullish on their company's prospects, and, since they're management, they theoretically know better than "outsiders" how their company will do. I'm not sure how reliable a metric that is, but that's beside the point.

But while the article says 11.4% is "impressive," it doesn't give me a baseline. I imagine there is always some level of insider buying going on. How much more than average is 11.4%?
Don't assume I know what I'm talking about.
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