Alexander Green’s Definitive Guide to Profiting From Insiders

Chief Investment Strategist Alexander Green has spent the past few decades mastering the art and science of investing.

Before heading up The Oxford Communiqué, Alex spent 16 years on Wall Street as a research analyst, an investment advisor and a registered portfolio manager.

In his long career, he supervised hundreds of VIP accounts worth tens of millions of dollars. And he has learned which systems work and which don’t.

That’s why it is rare for Alex to support an investment strategy as fully as this one.

You see, insider trading has been proven time and time again to deliver outperformance over the market… in almost any decade in which it was studied.

A joint study by Harvard and Yale professors found that this strategy has beaten the market by double digits.

Another Harvard Business School study found it can give you a “serious edge” over traditional investors.

And it bears repeating… It’s 100% legal.

It’s become a timeless strategy for developing an edge over other investors… including some of the greatest investors of the previous and current centuries.

Legendary fund manager Peter Lynch believes there is no better tipoff to the probable success of a stock.

George Soros, the most successful hedge fund manager ever, has used the strategy to earn returns of 36% annually… (At that rate, money doubles every two years.)

Research shows that sound companies with widespread insider buying tend to outperform the market by a substantial margin.

In fact, insider buying is one of the investment world’s crown jewels – certainly the purest and simplest way to make money in the stock market.

Alexander Green has used this technique with great success in his Insider Alert. That’s why he is one of the biggest advocates of following the insiders and believes it’s one the most powerful investment strategies in the world today.

Here’s Alex’s perspective on what makes this strategy so powerful.

– The Oxford Club Research Team

Why Most Stock Market Systems Fail… and This One Doesn’t

Most investors realize they need a successful, battle-tested system to increase their returns in the stock market.

But which system? There are so many.

Every guru claims his or her system is the best. They can’t all be, of course. And truth be told, many of them are no good at all.

The least you should expect when evaluating a stock-picking system is that is passes the common-sense test.

That means it should be easily understandable and intuitively believable.

That’s why I’m surprised more investors don’t use one of the most intuitive and successful stock market indicators of all: heavy insider buying.

It has been correctly pointed out that corporate insiders “know more about their companies’ prospects than the rest of us.”

How could it be otherwise? They have access to all sorts of material, nonpublic information that is unavailable to the rest of us.

In short, insiders know an awful lot about their own companies’ health and the likelihood of it getting healthier. After all, who knows better than top executives and directors what lies ahead for their firms?

That’s why when insiders buy a significant number of shares with their own money at current market prices… it should get your attention.

And if you want to use a method that’s proven to beat the market, there’s nothing like riding the coattails of knowledgeable insiders.

It is the most powerful and effective stock market signal in the world. I call it my “no spin” investing secret because it’s like having your own personal “truth detector” for stock prices.

You’ll know exactly which stocks are destined to fail and, more importantly, which ones are likely to succeed in a big way.

Leveling the Playing Field

Many years ago, insiders could buy or sell at any time for any reason and just pocket the gains.

Needless to say, this infuriated most investors who rightly saw the game as rigged in favor of those holding material, nonpublic information.

Corporate insiders have a treasure trove of information available to them, and they can hardly forget this knowledge when they go into the market to trade.

They know, for instance, the direction of sales since the last quarterly report, what new products and services are in development, whether pending litigation is about to be settled, and plenty of other stuff those of us on the outside looking in couldn’t possibly know.

The insiders have an enormous, unfair advantage in trading their own company’s shares.

And so the federal government began requiring corporate insiders to file a Form 4 with the Securities and Exchange Commission (SEC) any time they transacted in their own company’s shares, detailing how much they bought or sold, at what price, and when.

I’ve been tracking insider buying for more than two decades now. I have access to a database that lists Form 4s as soon as they become public information. It’s the same system used by the SEC to track insider moves.

And I have access to this site every day. It allows me to track every single insider purchase made.

There is still due diligence required, of course.

For example, you need to know how many insiders are buying, how much they’re buying and what their track records are.

I have a scoring system I use that helps me dig deeper and narrow my search for the best possible set of circumstances.

I’m not going to go into all the criteria and analytics that often lead to highly profitable trades. What I most want you to grasp is that, in essence, insiders vote with their wallets.

Every time they pile into a stock, they are in effect saying that with everything they know about the company – including all sorts of material, nonpublic information – they believe it is selling for less than it’s worth.

That’s an excellent signal.

So if you’re looking for a stock market system that is easy to understand, intuitive and effective, insider buying is a great place to start.