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OklaBoston (68.85)

Institutional Ownership Question

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October 26, 2011 – Comments (1)

I'm wondering how other Fools feel about institutional ownership vs insider ownership.

My own bias is toward the idea that insider ownership is more closely connected to realistic expectations about a company's prospects than is institutional or mutual fund ownership  and that therefor one should prefer stocks with high ratios of insider ownership to the other kind. Stocks like that are likely to be little known to most investors and to benefit as they become more like what this site calls "Water Cooler" stock. 

Agree or disagree? 

1 Comments – Post Your Own

#1) On October 26, 2011 at 3:37 PM, edwjm (99.87) wrote:

Agree.

The problem with stocks widely held by institutions is that they  will know any bad news before you will and they will beat you to exits or the buy window, as the news may warrent.

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