Management buying a company's stock doesn't guarantee anything, of course. But if you and I own a stock, we like to see the guys and gals minding the store holding some, too.
That's why this article from the International Herald Tribune catches my eye. The writer reports that European managements are buying more shares in their own companies than at any other time in the past two years. Well, I think that would be more impressive if it were, say, the past five or 10 years, but so what. Back to the article, which mentions portfolio holding 3i Group (III/LN):
So-called insider buying is often seen as reflecting optimism about companies' prospects. The trend may help shares of 3i Group and L'Oréal, which were among companies with the biggest purchases by executives and directors this month.
Then further down the piece:
Philip Yea, chief executive of 3i, Europe's biggest publicly traded buyout and venture capital firm, bought £111,907, or $204,000, of 3i's shares June 13, according to company filings. The stock has since gained 2.2 percent.
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