Insider trading will be caught sooner
Many people have unrealistic fantasies about making a fortune through insider trading, don’t believe Insider info is unrealistic fantasy. While some do profit from insider information, insider trading is a serious crime in any country, and with today’s advanced technology, any abnormal trading or unusual price fluctuations can be easily detected.
I discuss this topic in depth on page 39 of my third book, “Investor’s Beautiful Heaven“.
Buffett’s Investment Method
Buffett states that he never seeks insider information, only referring to publicly available sources such as the Moody’s Manual. When communicating with his executives, he typically asks only two questions: If you had to buy a competitor’s stock and hold it for 10 years, which company would you choose and why? And which company would you most like to short?
Making Money Through Compound Interest, Not Insider Tips
“Making money in the stock market doesn’t require insider information,” Buffett said in a telephone interview from his Omaha office. His advice to those aspiring to be like him was: “Knowing you’ll live to 95 is very helpful, because the miracle of compound interest often occurs in the last 10 years of life.”
Insider info make you lose 1M in a year
In the book Warren Buffett Speaks, it’s recorded that when Buffett was asked why he gave up working in New York, where he could have closer access to the financial markets and related insider information, Buffett responded: “With enough insider information and a million dollars, you’ll definitely go bankrupt within a year.”
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