At Insider Buying Report, we don't make this stuff up. Following insider buying has proven to outperform the general market for many years.
We specialize in following insider buying in nanocaps and microcaps.
Tweedy Browne's "What Has Worked in Investing" report is practically an investment bible, put together by the asset manager to show clients the findings that have shaped its investment process over the years.
All of the studies show a similar result; the investment returns on stocks purchased after insiders’ buying are vastly superior to the rest of the market.
For example, in the first study, which looked at the returns on equities during 1958, insider stocks gained 49.6% compared to the market return of 29.7%.
The second study looked at returns between 1961 and 1965. During this period, insider stocks returned 21.2%, and the market returned 9.5%. Even though the third study considered the same period, results were even more impressive. This particular study looked at equity returns after insiders’ purchases between 1960 and 1965 and found an insider return of 24.3% compared to the market return of 6.1%.
The final study was the only one conducted after 1965 and looked at the returns on insider stocks between 1974 and 1976. Still, despite the different period, the results were the same. Insider stocks returned 45.8% over the period studied compared to the market return of 15.3%. (source)
Even though these findings are somewhat out of date, the trend is clear. Insider buying is an unyielding signal for investors. You can download a copy of the report Here
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