Best Insider Traders

Defining A Good Insider

A good insider buys stock in a company when it is undervalued. The insider is proved to be right when the stock price rises consistently and only rarely decreases below its purchase price. We are able to analytically find this by using the following analysis criteria on the data:

high number of unique individuals who meet the role. If there are only a few people who have the same job title it is not an accurate sample set.

trades in every quarter from 2004 until present. A role that suddenly pops on the scene in the last quarter has an unfair advantage against those that have been trading consistently since 2004.

high minimum return. Rule 1- don’t loose money, rule 2 read rule 1.

high maximum return. We like to make some money too.

Role

# of Insiders

Min % increase

Max % increase

MARKETING OFFICER

472

-1.30%

557.52%

SCIENTIFIC OFFICER

128

-1.81%

297.59%

CHIEF SCIENTIFIC OFFICER

3,053

-17.68%

73.03%

How to interpret the table

There are 472 individuals who have purchased stock between 2004 and now and have indicated that they are a “marketing officer” at their company. If you had bought the same stock as these individuals every time they purchased stock, and evaluated your portfolio at the end of every quarter between 2004 and now, your entire portfolio would have dipped 1.3% below its purchase price once, and would have risen to a maximum of 557.52% above its purchase price once.

Using This Data

Don’t treat all insider trades equally. There are a number of sites who can provide you the insider trades of the day, see my article for more on that here, or you can also watch for my posting on insider trading on my site, an example. As I say in my investment philosophy you should use this data as the start for your investigations, it can help you reduce the risks associated with investing.

7 responses to “Best Insider Traders”

	edpin August 9th, 2009 at 02:06 Great information. Thanks for that. What’s their mean and median returns? Max and min are not very informative. If the mean and median returns are below market, how good is following their lead? Cheers. EP
	value investor August 15th, 2009 at 01:44 Hi, Initially I did think about adding the mean and median returns to my metrics. As you pointed out this would enable the ability to see if the portfolio would have risen consistently as compared to an index or if it had fluctuated all over the place. Did a role have one great quarter and the rest were low? After thinking about this some more though I concluded that it didn’t really matter to me, by having the best min and the best max we avoid the potential of loosing money and increase the potential of making money. Let me give an example: if one stock trades at a 0% increase from purchase price for 4 quarters and then suddenly goes to 100% of purchase price to me that is equal to a stock steadily increasing from 0 – 100% over the same period. As long as the stock doesn’t dip below 0%. But hey what do you think? Happy to provide the mean and median- let me know if you think I am completely wrong.
	Insider Trades: 15/08/2009 \| BuyingValue.com August 16th, 2009 at 02:56 [...] that have cleared the first filter in the last 7 days and are the highest ranked filter 2. See here for more about the current selection [...]
	Insider Trades: 26/08/2009 \| BuyingValue.com August 31st, 2009 at 12:59 [...] that have cleared the first filter in the last 7 days and are the highest ranked filter 2. See here for more about the current selection [...]
	Insider Trades: 28/09/2009 \| BuyingValue.com September 29th, 2009 at 08:31 [...] that have cleared the first filter in the last 7 days and are the highest ranked filter 2. See here for more about the current selection [...]
	Insider Trades: 08/10/2009 \| BuyingValue.com October 9th, 2009 at 20:35 [...] that have cleared the first filter in the last 7 days and are the highest ranked filter 2. See here for more about the current selection [...]
	Insider Trades: 3/22/2010 \| BuyingValue.com March 23rd, 2010 at 11:38 [...] that have cleared the first filter in the last 7 days and are the highest ranked filter 2. See here for more about the current selection [...]