Private Equity: Follow the Smart Money | EUROtoday

“Follow the smart money” – comply with the sensible cash. This sentence in all probability goes again to the start of the twentieth century, when not everybody was capable of finding out about all the pieces always. “Follow the smart money” was (and nonetheless is) an funding technique that consists of following the monetary transactions of huge, skilled and profitable buyers. The concept behind it: The professionals are deeper into the motion, know the market higher, and may analyze firms and markets higher. It is not any coincidence that Warren Buffett’s annual letter to shareholders can also be so well-liked amongst non-public buyers.