| Watch What Executives Do with Their Own Money The second signal comes straight from Peter Lynch's old playbook. Corporate insiders - CEOs, CFOs, and directors - know their businesses better than anyone. They see real-time sales data. They understand demand trends. They know what's really going on inside of the company long before the public does. And while there are many reasons insiders sell a stock... There's only one reason they buy: they believe it's going higher. Here's a recent example... On August 5, 2025, Lumen Technologies (NYSE: LUMN) CEO Kate Johnson spent more than $500,000 buying 135,870 shares of her own company's stock. At the time, Lumen wasn't exactly a market darling. The stock had been under pressure. Many investors had written it off. But between August 5 and November 3, 2025, Lumen's stock surged from $3.75 to $11.83 — a gain of more than 215%. Recently, something even more interesting happened. On February 5, 2026 - after the company reported fourth-quarter earnings and Lumen's shares dropped more than 20% - Johnson stepped up again. She bought another $500,000 worth of stock. That's conviction. Since that second purchase, the stock has risen nearly 35%. When a CEO commits serious personal capital - especially during periods of weakness - it often signals confidence that the market is missing something. That's what makes insider buying such a powerful signal. And when you see: - Meaningful dollar amounts
- Senior-level executives involved
- Purchases during volatility
It becomes even more compelling. When insiders are buying aggressively, it's usually worth your attention. Small Companies, Big Opportunities (And the Power of Being Early) Large companies can grow. But it's mathematically harder for a $500 billion company to double than it is for a $500 million company to double. Smaller companies often fly under the radar. Big hedge and mutual funds can't easily take large positions without moving the price. Wall Street analysts usually ignores them and the media rarely talks about them. That creates inefficiency. Historically, small-cap stocks have outperformed large caps over long stretches of time. And when a small company: - Operates in a fast-growing industry
- Shows accelerating revenue
- Begins attracting insider buying
The upside can be significant. Think about it this way... Every major market leader started out as a small company. Apple was once tiny. Nvidia was once tiny. Netflix was once tiny. The key isn't chasing them after they become household names. It's discovering them earlier in their growth cycle and recognizing the potential. A Powerful Trifecta While following each of these signals alone generates outsized returns, when you combine them, you create a powerful filter. Think about what happens when a small company... with rapidly accelerating revenue... starts seeing heavy insider buying. That's not random coincidence. That's a management team confident in growth. That's a business gaining traction. That's a stock that the big funds may soon discover. Momentum tells you customers are buying. Insiders tell you management is confident. Small size tells you the runway is long. Put them together, and you have a serious edge. A Winning Combination Alex has been using these three signals to help his subscribers achieve outsized returns for more than two decades. And, right now, he believes he's found a company where all three of those signals are lining up again. It's still relatively small. Revenue is accelerating. And senior executives have been buying shares with their own money. Opportunities where all three signals align don't show up every month. In fact, Alex has said they're rare. If you'd like to see the full breakdown - including the company name, ticker symbol, and the specific data behind his conviction - Alex has put together a detailed presentation explaining exactly why he believes this setup could be so powerful. Sometimes, one well-timed decision - backed by discipline and data - can make a lasting difference in your financial future. And this may be one of those moments. Good investing, Kristin P.S. The market doesn't wait. And neither should you. If you'd like to receive timely insights and important updates from Liberty Through Wealth delivered straight to your phone, I encourage you to sign up for our free text alerts today. |
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