The Rising Influence of Rising Affluence

[DewDiligence]

That statement seems way too broad to be really useful -- I'm thinking of company founders, for instance, as well as executives who've had a long tenure with a company.

By the time a publicly traded company becomes profitable, the founders have usually been diluted many times and do not have enormous equity stakes. Principals in an LBO, on the other hand, have to ante up for a mature business and thus tend to have much larger equity stakes compared to founders.

Seems to me the more-salient aspect of [Demshur’s] sales is that he sold almost half his position.

Agreed; the percentage of shares sold and the sheer size of the transaction are relevant considerations for investors, but so is the historical pattern of insider selling for the company, which I addressed in #msg-65683956.

To reiterate, I never like insider selling of any kind. CLB’s insider selling does not in itself make me want to pare my position, but it does dissuade me from adding shares at the current valuation.