Watching what the smart money is buying can be a useful investment strategy. While blindly following anyone, whether a billionaire investor or some guy writing on the internet, is never a good idea, using the companies investing gurus buy as a launch pad for your own analysis can be profitable.
That’s because investors, rich or or not, rarely agree. Where one sees a potential gold mine, another views the stock as fool’s gold. But sometimes, the stars align and a consensus forms behind a stock that all seem to agree is a unique opportunity.
That recently happened when more than two dozen millionaire and billionaire investors all piled into one stock. When that happens, it may be a signal to small investors that they should also take notice.
This post originally appeared at 24/7 Wall St.