When the stock market is hitting new highs and traditional valuation measures sit above their historical averages, investors seeking opportunities may feel stumped. That’s a good time to look at what the “smart money” is buying.
One group of smarties: corporate insiders — board members and executives, as well as shareholders who own more than 10% of the company, who likely know more about their business than anybody else. “Investors should pay attention to insider buying and selling because insiders have intimate knowledge of their company’s operations and an information advantage,” says Ben Silverman, director of research at Verity, an investment research and data services firm.
