Billionaires in the know are piling into this stock - the brave should follow them

When insiders of a closely-controlled company buy millions of pounds worth of shares, it's usually worth taking a closer look.

Lord Ashcroft is usually written about in the politics section of Britain's newspapers. Yet the business pages should probably pay him more attention the serial entrepreneur-turned-Tory-treasurer is involved with not just one but about half a dozen Aim-listed companies.

One where he recently invested a tidy sum is BB Holdings (AIM:BBHL). The company was listed via the back door when Michael Ashcroft restructured one of his other holding companies in 2005. The lack of a formal IPO is probably one reason why few investors have heard of it. Another reason for the market's lack of interest is the fact that Lord Ashcroft already owns 72.8% of the shares. On most days, not a single share changes hands. Yet, when a large block becomes available, Lord Ashcroft has often proved willing to buy them himself. In July 2008, he bought 620,164 shares for £1.3m (220p a share). At the same time his chief financial officer picked up 350,000 BB Holdings shares, worth £770,000. With such heavy insider buying, the company seems worth taking a closer look at.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up