Benjamin Franklin said there were only two things certain in life: death and taxes. Some things may be obvious, but not quite certain. Insider selling is one of those in my opinion. As markets and companies become more in-line with fair value, it can become much harder to extract value from companies, particularly with the shift and impact in technology, governments, regulatory changes and the general environment. This can give rise to a few different variables that I’ve seen affect executives over time. Sometimes, this motivates them to do something with the company for the good of the shareholder.
Here is what I think. There are two things certain in the investment world that you cannot spot until much later: Selling by insiders who know bad news is coming or executives straight up cooking the books.