these are just some of the reasons that go on behind the scenes but in general companies like these tend to underperform now on the flip side companies in which insiders own the majority of the company tend to outperform because they have an incentive to do so since they are majority stakeholders they take shareholder friendly decisions so that they can create long-term shareholder value and the overall health of the company isn't compromised these factors are the main reasons that companies often outperform their peers now before we wind our brains around the characteristics of how these decisions of bulk selling of stock affect us it's extremely crucial to understand two things first is the motivation of insiders behind selling their shares and second is retail investing objectives now before we get to that really quickly if you're like me you probably have some concerns about the state of our economies with inflation at NUMBER_TOKEN percent lots of investors are looking for non-market correlated assets and that's where this video sponsor masterworks dot io and fine art comes in now fine art has proven to be a far better investment than you probably realize returning NUMBER_TOKEN a year compared to the s p NUMBER_TOKEN NUMBER_TOKEN a year since NUMBER_TOKEN. the only problem is that art starts to become a reliable investment once it passes the NUMBER_TOKEN million dollar mark and most people don't have millions of dollars to spend on a properly diversified art portfolio but masterworks do io fixes that problem they buy incredible pieces of art ranging from NUMBER_TOKEN million dollars to NUMBER_TOKEN million by artists like banksy and picasso they then securitize them with the scc allowing investors to buy shares on their site in an initial offering similar to an ipo once you've bought part of your favorite piece you can then hold on to it until the piece is sold at which point you can cash out or you can sell your shares on the secondary market to someone else investors already received a NUMBER_TOKEN annualized return in NUMBER_TOKEN from their sale of banksy's mona lisa masterworks dot io is democratizing the art market and allowing the masses to invest in an asset class that was previously unavailable to us so if that sounds interesting to you if diversifying your investment portfolio is important to you then make sure to check out masterworks dot io there's a link down below in the description for you to check out so to begin with insiders are usually net sellers of stocks as a result they are almost always selling more stock than they are buying this is often because a large portion of management compensation is in the form of stock in their own company so say tomorrow if they might want to spend some bucks buying a house an island or maybe they just want to diversify and take all their eggs out of one basket well they're going to need cash and they're probably going to need to sell some shares these are all common and actually valid reasons to liquidate some stock now that we've established why insiders are typically net sellers and why they might sell shares in their own company we can go on to the next step an insider will buy shares in their firm for only one reason they believe the stock is attractively priced and that the company is a good business that will perform well in the long run when executives founders or insiders are buying in more it's usually good news now there has been a lot of hues and cries about billionaires pulling out of the market negatively affecting personal portfolio holdings a lot of small retail investors usually try to spin
START_SPONSOR_TOKEN where this video sponsor masterworks dot io and fine art comes in now fine art has proven to be a far better investment than you probably realize returning NUMBER_TOKEN a year compared to the s p NUMBER_TOKEN NUMBER_TOKEN a year since NUMBER_TOKEN. the only problem is that art starts to become a reliable investment once it passes the NUMBER_TOKEN million dollar mark and most people don't have millions of dollars to spend on a properly diversified art portfolio but masterworks do io fixes that problem they buy incredible pieces of art ranging from NUMBER_TOKEN million dollars to NUMBER_TOKEN million by artists like banksy and picasso they then securitize them with the scc allowing investors to buy shares on their site in an initial offering similar to an ipo once you've bought part of your favorite piece you can then hold on to it until the piece is sold at which point you can cash out or you can sell your shares on the secondary market to someone else investors already received a NUMBER_TOKEN annualized return in NUMBER_TOKEN from their sale of banksy's mona lisa masterworks dot io is democratizing the art market and allowing the masses to invest in an asset class that was previously unavailable to us so if that sounds interesting to you if diversifying your investment portfolio is important to you then make sure to check out masterworks dot io there's a link down below in the description for you to check out END_SPONSOR_TOKEN