Top Insider Trades: Berkshire Dials Up Dialysis Investment

By Jonathan Moreland  NOV 27, 2012 1:40 PM

Google and Carnival insiders sell while Prescott Group hits both the buyers and sellers lists.


In a victory for common sense, the trading behavior of company executives, directors, and large shareholders in the stocks of firms they're registered "insiders" at have been proven profitable to monitor by both academic studies and (more importantly) the experience of your fellow professional investors.

Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission Monday, November 26, 2012 as ranked by dollar value. 

Please note, however, that these are factual lists, not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant.

In October, Berkshire Hathaway (NYSE:BRK.A) raised its stake in DaVita (NYSE:DVA) above 10%. This month, the company dialed up its investment in the dialysis clinic operator to the tune of nearly $45.5 million. All shares were purchased on the open market.

Google (NASDAQ:GOOG) and Carnival (NYSE:CCL) insiders sold shares in previously scheduled transactions. Eric E. Schmidt pocketed $33 million for selling stock in the search giant and the the Eternity Four Trust sold $15.5 million worth of stock in the cruise operator.

In an unusual sort of round trip,  Prescott Group Capital Investments made both the largest insider buying and selling lists, buying $3.1 million in VistaPrint (NASDAQ:VPRT) stock and selling $13.8 million worth of Credit Acceptance (NASDAQ:CACC). Both transactions were done on the open market.

At, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.

Source: | Key to Insider Title and Trans Type Codes

Source: | Key to Insider Title and Trans Type Codes

Editor's note: Jonathan Moreland is the founder of Insider Insights and author of "Profit From Legal Insider Trading."
No positions in stocks mentioned.