I sometimes read headlines saying something like, “Shares of Company A surged X% after being acquired by Company B.” It gets me thinking how could investors have known to buy in beforehand?
I’m new to higher-risk investing and usually stick to my cocktail of ETFs that I buy+hold long-term, but I keep thinking: If I had got in right before one of these acquisition announcements, I could've earn a heck ton. Surely there must be a way to anticipate when a company is about to be bought out.
So I'm sorry if this sounds dense, but does anyone actually follow this approach, i.e. tracking potential mergers and acquisitions to profit from the stock movements? Does this strategy even have a name? And where do investors get early info about upcoming deals? Any tips? Thanks!