Coattail Investing

0.01 sec.

Coattail investing

A risky trading practice of making trades similar to those of other successful investors, usually institutional investors.

Coattail Investing

An investment strategy in which one buys most or all of the same securities as a historically successful and usually well-known investor. One buys these securities as soon as the famous investor's decision is made public. It is a risky strategy as it ignores portfolio implications and risk analysis. For example, one may buy a stock after it has already gone up in price considerably, and may already have become overvalued. Alternatively, one may sell the same stock after its downward trend has become well established and it may have already become undervalued. However, it can be a profitable strategy if the coattail investor adopts a buy-and-hold mentality because, in the long term, the famous investor is often correct. See also: Chasing the market.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
No references found			Club Deal Cluster analysis cluster development cluster zoning Clydesdale Bank CM CMA CMBS CME CML CMO CMO REIT CMTA CN CNN Effect CNS CNY CO Co-agent Co-Borrowers Co-Financing Co-Manager co-op Co-Signing Coassicurazione Coattail Investing Cobertura Cobertura a termino Cobertura a termo Cobertura corta Cobertura cruzada Cobertura de un seguro Cobertura larga Coberturista Cobranca cobroker Cochef de file Cockroach Theory CoCo Bond COD Transaction code code of ethics Code of Procedure Codice di avviamento bancario Codicil Codicillo Codirector Coefficient de correlation Coefficient de Gini Coefficient of Determination Coefficient of Variation			coats coats coats Coats disease Coats Land Coats Land Coats of arm Coats of arm Coats of arm coats of arms coats of arms coats of mail coats of mail Coats' disease Coats' disease Coats' disease Coats' disease Coats' Disease (Exudative Retinitis) Coats' retinitis Coats-of-arm Coats-of-arm Coats-of-arms Coats-of-arms Coats’ Disease coatstand Coatsville Coatsworth, Elizabeth COATT coattail coattail Coattail Investing coattails coattails coattails coattails effect Coatzacoalcos Coatzacoalcos Coatzacoalcos, Veracruz Coatzacoalcos, Veracruz COAU COAUG coauthor coauthor coauthored coauthoring coauthors COAV COAWA coax coax coax coax coax coax adapter coax cable coax cable coax from coax from coax from coax in coax out

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.