When it comes to investing, going with the crowd will rarely if ever make you rich. If your objective is to buy low and sell high, then, in the words of Warren Buffett, you must be "greedy when others are fearful and fearful when others are greedy." This is the foundation of contrarian investing.
But there's a twist. To be a contrarian investor, you must first know what to be contrary to. And this is where the SEC's invaluable EDGAR database comes in. Every quarter companies and large institutional investors are required to disclose their equity holdings. By patching these together, we can get a fuller picture of a particular stock's popularity.
What follows, in turn, is a look at the principal owners of Bank of America's (NYSE: BAC ) outstanding common stock.
A broad overview
As you can see in the following chart, the majority of Bank of America's 10.5 billion shares are held by institutional investors. Company insiders, including board members and corporate executives, own a further 0.06% of the outstanding common stock. And the public at large owns the remaining 39%.
Digging in a bit further, the largest institutional stakeholders in Bank of America are asset managers. Bond giant BlackRock tops the list at 5.2% ownership, followed by The Vanguard Group at 4.9%, and the asset management arms of State Street, Fidelity, and T. Rowe Price at 4.3%, 2.5%, and 1.4%, respectively.
The largest buyers have been BNP Paribas and JPMorgan Asset Management, which have recently acquired 19.1 million and 18.9 million shares of common stock, respectively. Meanwhile, the two largest sellers of late have been Robeco Group and Fidelity, which have disposed of 39.6 million and 39.4 million shares, respectively.
Turning to inside investors, far and away the largest inside owner is Thomas Montag, B of A's chief operating officer, who received the equivalent of more than 1.5 million shares as a part of B of A's Merrill Lynch acquisition. The second largest holder is chief financial officer Bruce Thompson with 688,383 shares. And in third place is chief executive officer and recently elected board chairman Brian Moynihan with just under 600,000 shares.
The bottom line on inside and institutional ownership
While insider and institutional ownership together represent only one metric, it's nevertheless an important one. Beyond hinting at the overall market's sentiment toward a stock, it also gives investors insight into the confidence of the people best positioned to predict a company's current state and future success.
Bank of America + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!