Dip the toes into trading stocks by replicating directors’ dealings
July 10, 2024
Directors’ dealings constitute a scientifically proven trading signal to yield superior investment returns.1 This is also supported by an earlier blog post illustrating BOSS STOCKS’ simulations to replicate directors’ dealings across the German stock market indexes DAX, MDAX and SDAX. Continue reading to understand how to dip the toes into trading stocks by replicating directors’ dealings and which investment returns to expect.
Replicating directors’ stock acquisitions allows for an average positive return of 7% within a month
BOSS STOCKS analyzed more than 250 directors’ dealings across DAX, MDAX and SDAX between January and May 2024. Firstly, both DAX and SDAX recorded more than 90 managers’ transactions of trading stocks while MDAX fell a bit short with 72. Secondly, 231 of these directors’ dealings were acquisitions and 26 were disposals. Here, the focus lies on replicating the managers’ transactions related to acquisitions. As a result, 99% of those achieved a positive return within a month averaging slightly above 7%. This is similar to the average yearly (not monthly!) return of the DAX in the 35 years of its existence.2 The lowest/highest average positive return within a month is recorded for the DAX/MDAX at 6.49%/7.92%.
Benefit from top stocks’ performance in the German stock market indexes
The replication of 13 director dealings across the German stock market indexes yielded positive returns above 20% within a month. In the DAX, those were all attributed to Rheinmetall stocks and related to share purchases of several members of the supervisory board. The acquisitions of Hensoldt stocks by the company’s CEO accounted for the leading positive investment returns in the MDAX. In the SDAX, AUTO1 Group stocks, Deutz shares and ProSiebenSat.1 Media stocks contributed with share purchases of their CEOs.
Replicate directors’ dealings for superior investment returns with BOSS STOCKS
BOSS STOCKS is currently developing an investment platform for stocks enabling everyone to replicate directors’ dealings. Free sign up to discover the directors’ dealings that can help you yield superior investment returns ahead of launch.