Insider Buying Doesn't Give You a Timeline
I pay attention when insiders buy their own stock.
But I think investors sometimes read too much into it.
If an executive puts $5 million into their company, that doesn't necessarily mean:
“The stock is going up next week.”
It could simply mean they believe the market is undervaluing the business over a much longer period.
And that's an important distinction.
Whenever I see insider buying, I want to dig a little deeper.
What price did they buy at?
Was it an open-market purchase?
How meaningful was the purchase to them personally?
What does management think the business can look like five years from now?
And most importantly:
What could make their thesis wrong?
The insider purchase is the signal.
The research comes afterward.
I don't want to copy someone's trade.
I want to understand the thinking behind it.
