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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Are all insider traders created equal?

Insider trading is the practice of purchasing shares in your own company. In accordance with the Security and Exchange Commission the purchaser must file within a few days of the transaction. Filings can be found on the SEC’s edgar page.

Insider trading is an important tool for value based investors. Insiders have a better understanding of their company, if nothing else they have seen the faces of people at the office, heard the chatter in the lunch room- they have a feel. Insiders are like any other investor- they sell for all sorts of reasons but only buy stock for one reason. When insiders speak we should all listen.
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