Coattail Investing
Definition of 'Coattail Investing'An investment strategy in which investors mimic the trades of well-known and historically successful investors. |
|
Investopedia explains 'Coattail Investing'This copycat investing can be very good - why not follow the best? This investing strategy works the best when the money manager or institution being mimicked buys companies with a buy-and-hold mentality. If the manager is buying the company for a short period of time, the delay between the purchase and the release of the information to the public may render the particular purchase a bad one. However, many money managers buy companies with a buy-and-hold mindset. |
Related Definitions
Articles Of Interest
-
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Warren Buffett: How He Does It
We look at the Sage of Omaha's methodology for evaluating value stocks. -
Pitfalls Of Copycat Investing
While it may sound good in theory to attempt to mimic the investment style and profile of a successful institution, it is often much harder (if not impossible) to do so in practice. -
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks. -
What Is Warren Buffett's Investing Style?
Learn the main principles that Warren Buffet uses in assessing a company. His take on value investing may surprise you. -
No Forex Strategy Of Your Own? Try Mirror Trading
There are many advantages to trading a mirror strategy, yet markets are dynamic, and regardless there is always a risk of losses. -
The Greatest Investors
Read about the achievements of those who have mastered the art of investing. -
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. -
A Top-Down Approach To Investing
Use a global view to determine which stocks belong in your portfolio. -
A Look At Primary And Secondary Markets
Knowing how the primary and secondary markets work is key to understanding how stocks trade.
Free Annual Reports