Insider Trading Sell Offs Are Risky

In my experience, no one will work harder for you than someone who has a vested interest in your success. Sales people have know this for years, if you incentivize, smart people will find ways to win. This is why internal ownership at a company is something I look for (see an overview of my investment filters).
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Best Insider Traders

I am willing to concede that company insiders know more about their businesses than I could ever learn about it by reading financial statements. This is why I use insider trading as part of my assessment critieria. The fact that all company insiders are not created equal should come as no surprise- who would you trust to know more about a business, the chief accountant or the janitor?

So what are the best job titles when it comes to insider trading? To give my analysis on this let me first set a few ground rules:
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Value Investing Four Filters

I am always looking for good high quality companies that are trading at a discount. Finding these companies is both challenging and time consuming. Finding cheap companies isn’t hard- finding cheap good ones is. A professional investor will spend the entire day researching company after company trying to find something the market has overlooked. As an amateur investor I don’t have that kind of time so I needed a method to reduce the number of companies I examine every week to a small handful that merit my further investigations.
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Insider Trading December Report

Every day I pull a list of the insider traders then I shorten the list to be only buys done by roles that have a proven track record (see my previous post for a little on this). Finally I run an evaluation of the companies based on some of the ratios that Graham used to find companies that are cheap (See my earlier series on this).

This is just the start for me though after a company reaches this level it is worthy enough for me to look at it further not necessarily.
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