A recurring theme in investment forums and blogs is the reference to institutional investors as saints when a stock’s price rockets and as villains when stock prices fall. You know the institutions as The Big Buyers. The Big Boys. The BBs.
You know some of them and read about them on the news. When you hear that a sovereign wealth fund (SWFs) or famous asset manager holds shares in a company you want to invest in, you feel validated. They must have done their homework and decided it was a good investment for them. But is it necessarily a good investment for you?
In this post, I will like to warn you about 2 pitfalls of eating whatever the BBs eat.
(1) The Terms of Investment are DifferentI will start off with an example that my idol was involved in. Let’s time travel back to 2011.
Bank of America
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