TSI #28: Copy the rich
Jan 08, 2023Hello Stoic Investors,
Today I want to teach you how to copy the rich. This article is designed to be a step-by-step guide. It gets even better; the process doesn’t take more than 60 seconds.
You might be wondering why this is even important. Why should you even care what the rich are investing in?
The answer is simple. Copy what works. Why should we waste our time on building something from the ground up? It’s far better to learn from people who have already achieved what you’re trying to do.
However, a note of caution here. Some things should not be copied 100%. Maybe the better word for it is “learn from”.
So, let’s look at how we can find what millionaires are buying. Step-by-step.
Step 1: Go to the website
Go to: http://openinsider.com/ . There are a few pages where you can see what legendary investors are buying. However, only a few websites offer you the option to see what CEOs, Directors and other powerful people are buying. That’s why OpenInsider is a good choice. Furthermore, it’s 100% free.
Step 2: Set the correct parameters
Don’t get scared by the word “parameters”. It’s just a fancy word for saying “things I’m interested in”.
Here you can set what you’re looking for. Maybe you’d only like to see the recent purchases of Microsoft shares. Maybe you’re only interested to see if the CEO is buying. That’s usually a good sign for any company. So, let’s move on with those two.
Step 3: The results
After you hit “search”, you get absolutely nothing. That’s because Microsoft CEO Satya Nadella did not buy anything in the last 2 years.
Therefore, we’ll now go back and toggle the “sale” as well. This will allow us to see if the CEO maybe sold a few shares.
Here we can see that Satya Nadella was indeed a net seller in 2021 and 2022. Not the best sign.
But remember, there can be many reasons why CEOs sell. However, there is only one reason why they buy. To make money. Buy signals can therefore be regarded as more important.
Now that you have learned how this platform works, you can play around with it. Check out other companies and other influential people.
So, note down these points and start investing today:
- It’s super easy to see what the rich are buying
- CEOs only buy for one reason. To make money.
