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Insiders Opting In

By Jonathan Moreland

About this article:
Investors understandably apply great significance to every Form 4 filed by Warren Buffett's Berkshire Hathaway and the insider trades of other well-known business leaders. The excellent track records of certain rock-star insiders or entities make their trades "must review" material for an insider guy like me. Alas, the financial news media feels the same way. And whenever a big-name insider files a Form 4, the news quickly makes the rounds, often influencing the price of the insider-bought stock at the same time. That's why the bulk of my insider-inspired picks are generated by lesser-known executives, or lesser-followed tranches of the insider data flow. Even after nearly two decades of following insider data, I still find interesting trades every month by insiders whose names are new to me, even though they sit on several boards and have solid trading track records as per their Form 4s....

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