Coattail Investing

An investment strategy where investors mimic the trades of well-known and historically successful investors.

Investopedia Says:
This copycat investing can be very good - why not follow the best? This investing strategy works the best when the money manager or institution being mimicked buys companies with a buy and hold mentality. If the manager is buying the company for a short period of time, the delay between the purchase and the release of the information to the public may render the particular purchase a bad one. However, many money managers buy companies with a buy and hold mindset, including the most successful one of all, Warren Buffett.

Related Links:
We look at the Sage of Omaha's methodology for evaluating value stocks. Warren Buffett: How He Does It
We take a close look at the main principles the 'Oracle of Omaha' uses in assessing a company. What Is Warren Buffett's Investing Style?
Read about the achievements of those who have mastered the art of investing. The Greatest Investors

Following on the coattails of other successful investors, usually institutions, by trading the same stocks when their actions are made public. This risky strategy assumes the research that guided the investor wearing the coat is still relevant by the time the coattail investor reads about it.