Insider buying: follow the leader
No-one knows the investment case of a company better than its senior management. That is why following the directors can be a useful investment strategy. Reads on to find out which company bosses have been buying and why you should take note.
It can pay to follow the investment decisions of a company boss. Afterall, they know the investment case better than anyone else. Insider buying is “the most reliable early guide” to share price growth, according to Jim Slater – an observation that has been backed up by plenty of academic studies. When we wrote about director investment in November last year, 3I (LON: III), DCC (LON: DCC) and Royal Mail (LON: RMG) had attracted more recent insider buying than any other London-listed company. Since then, the share prices at the former two have leapt upwards: Simon Borrows, chief executive at 3I, and…