Author: Jack Haxton
Pelosi’s Trading Secrets: Better Than Buffett?
Nancy Pelosi might be one of the most consistent investors over the past decade, and she’s never worked a day in her life in finance. Over the past 11 years, her reported stock trades have outperformed not just the S&P 500, but also Warren Buffett’s Berkshire Hathaway and the majority of major hedge funds. Whether it be skillful trading or something more suspicious, the results are undeniable; her portfolio is up 693% since 2014.
How Can Congress Trade Securities?
Under the STOCK act, members of congress have to disclose any trades that they make within 45 days. But, there is no law that is preventing them or their spouses from actively trading individual stocks, even if those companies are soon to be impacted by upcoming regulatory decisions. Nancy has never worked in finance, her background is entirely in politics, but her husband is a successful investor and owns his own investment firm. Paul is the one who is making the trades, but they are listed under Nancy’s name.
Nancy has publicly denied any wrong-doing, and there appears to be no proof of insider trading, although our public perception would be quite the opposite. A large number of Americans and members of congress support banning stock trading altogether for lawmakers. This year, a proposed bill known as the PELOSI Act, now renamed the Honest Act, looked to prohibit members of Congress and their families from buying or selling individual stocks. In the meantime, some retail traders have decided to take advantage of Pelosi’s extreme performance and there are now “Pelosi Portfolio Trackers” who follow along her every disclosed trade seeking similar returns.
Lines Blurred: A Case for Congressional Reform
Nancy Pelosi may go down as one of the most effective legislators of our time and also one of the most strategically timed investors. Whether it’s legal skill, lucky timing, or something more questionable, the Pelosi portfolio has become a symbol of the blurry line between public service and private gain. Maybe Paul Pelosi really is one of the great investors of our time, or maybe the game looks a little different when you’re the one who’s writing the rules.
