Mosaic theory and nonpublic material

[kim226]

anyone can use an example to explicitly explain it ? thanks

 

[Matori]

I am analyzing BMW. I go to a car show and hear that convertibles are not in this year. Talking to a few industry specialist, they say that Jeeps are going to be the best buy next year.
I go to BMW’s website and see that all they are selling next year are Convertibles. I go to BMW’s dealership and see a large amount of inventory in the parking lot.
I am using non material, non public info. And i Recommend a Sell.
—
Pretty much I am not using any “insider” information. I am putting things together from various public sources, and experience.
If I was to overhear the CEO of BMW say, we are screwed next year, then I wouldn’t be able to use the MOSAIC theory

 

[AndyNZ]

You can combine your existing research with non-public non-material information under the mosaic theory.
You can never use non-public material information.

 

[kim226]

thanks matori.so it would not be violated if you just use those public resource?

 

[Matori]

Nope. Using your knowledge, experience, research etc… that does not include information that is confidential,insider, etc. is fine.
Overhearing CEO’s and so forth is a violation.