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When Should You Follow Insider Buying Signals?

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Rupert Hargreaves
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Share tipper Jim Slater believes that insider buying is one of the most important indicators for investors. While it is a valuable tool, insider buying should only form part of a valuation thesis but can be a key tool for value investors, especially when searching out turnaround opportunities. Directors have an unrivaled view of their businesses prospects if they start to buy when the businesses in undergoing a turnaround, it's a sure-fire indicator that business is picking up.

Seven key factors whether insider buying is worth following

And according to Jim Slater, there are seven key factors that can help you decide whether insider buying is worth following:

  1. Insiders can be pushed into buying just to support the share price. This...

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha