Legal Ways to Profit From Insiders

Unless you are a member of Congress you would go to jail for trading on inside information.

However, for those of us who can’t escape prosecution – like certain Congressman/women – there is a legal way around it…and it’s a no-brainer.

Sort of.

It’s so simple, you’ll need someone to help you misunderstand it.

Ready?

Here it is.  Buy stocks that buyback their own shares.

Pretty simple, Yes?

If you’re wondering why it makes sense, just look at the three most common reasons why companies’ buyback their own shares:

1. The stock is undervalued
2. Improve financial ratios and boost confidence
3. Reward shareholders without the taxation of dividends

To further illustrate this point, check out data from an S&P research source:

The historical growth of $10,000 invested in the 100 large-cap companies with the highest share buyback ratios versus the S&P 500 Index from 1976 through May-2018 yields the following:

The top 100 Share Buyback companies grew to $5,882,958. 

The S&P index grew to $1,019,927.

In Plain English that means you made $4,863,031 MORE from your $10,000 buying companies that bought back their own shares than you would have made buying the S&P index.  (Data per Standard & Poors and Ford Equity Research).

Sounds like a no-brainer, right?

For the most part it works like a charm.

However, there are exceptions that can hit you like a 2 X 4 up side your head leaving you dizzy and broke.

It’s called corporate theft via desperation.

In our archives we feature an article “Why All Share Buybacks Are NOT Created Equal.”

See for yourself:

1. S. Feel free to share this with a friend and/or give us a “like or share” on Facebook.

They’ll thank YOU later.