Summary Billionaire CEOs have been buying stocks through the past several days as the stock market crashes to new lows. Elon Musk started the trend of scooping up companies with his Twitter bid and now the CEOs of Starbucks, Spotify, and FTX have followed suit. When billionaire insiders buy stocks then investors should pay attention. This could be the bottom of the market.

Billionaires, CEOs, and insiders are going on a buying spree lately with major indices trading at much lower levels. The S&P 500 is down 17% YTD while the NASDAQ is down 27% YTD.

I find it interesting to closely track insider buying because CEOs know more about their businesses than anyone else.

With all the fear in the markets, I'm not surprised that billionaires are going shopping for beaten-down stocks that have been oversold.

I don't have a crystal ball but we can use this data to determine the best entry points for our personal portfolios.

Billionaires Are Buying Up Stocks

Here's a list of recent insider buys from billionaires who bought shares in their own company or stakes in another company in Q2 2022:

Starbucks founder and interim CEO Howard Schultz bought 137,500 shares of SBUX for a total of $10 million. Spotify CEO Daniel Ek purchased $50 million worth of SPOT shares. FTX founder and CEO Samuel Bankman-fried bought a 7.6% stake in Robinhood (HOOD). Shopify CEO Tobi Luke purchased $10 million worth of SHOP stock.

This is enough buying activity to indicate that these CEOs believe stocks are trading at a discount to their intrinsic values.

Follow the Smart Money

Why is this trend so important? Because it is the exact opposite behavior of what Wall Street billionaires were doing back in November 2021.

Billionaires were dumping stocks last year including Elon Musk who posted the infamous Twitter poll asking his followers if he should sell Tesla...

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