Invest in the stocks that Nancy Pelosi holds using Interactive Brokers or Public as your preferred online brokerage service.
When it comes to steering fundamental changes on financial markets, policy influence comes from the top. Companies have a lot of leeway, but they have to conform to regulations enacted by federal elected officials. Having access to privileged information can create significant information asymmetry between policymakers and the rest of the market. Naturally, temptations to use that information for profit could arise.
In 2024, the five richest members of the House of Representatives are Rep. Vernon Buchanan (R-Florida), Rep. Nancy Pelosi (D-California), Rep. Darrell Issa (R-California), Rep. Daniel Goldman (D-New York) and Rep. Suzan DelBene (D-Washington)
Who Is Nancy Pelosi?
Nancy Pelosi, a member of the Democratic Party, is the Representative of the 11th Congressional District of California. She served as Speaker of the United States House of Representatives from 2007-2011 and again from 2019 to 2023.
Born in an Italian-American family, Pelosi has a strong background in politics. Her parents were active politicians, especially her father, a Democratic congressman — a career path she would follow, entering the Congress in 1987.
What Are Nancy Pelosi’s Stock Market Investments?
According to the Stop Trading on Congressional Knowledge Act of 2012, Congress members must disclose financial transactions within 45 days. Thus, Pelosi’s investments are public knowledge, as are the investments of all current members of the Congress and the Senate.
The following are the stocks that Pelosi has been dealing with in the market.
Apple Inc. (NASDAQ: AAPL)
Apple Inc. (NASDAQ: AAPL) designs, manufactures and sells smartphones, personal computers and other tech accessories, as well as various services. The company is one of the strongest brands in the technology sector and the largest company in the world by market cap ($3.29 trillion).
The stock currently trades with a high price-to-earnings (P/E) ratio of 32.94. It increased its revenues while simultaneously boosting profit margins in prior years. Critics might point out its low dividend yield but keep in mind that the company delivers outstanding returns on capital employed.
NVIDIA Corp. (NASDAQ: NVDA)
NVIDIA Corp. (NASDAQ: NVDA) is a global visual computing company with a market cap of $2.86 trillion. The company operates in two segments: Graphics and Compute & Networking. Wider audiences know NVIDIA as a premier graphics processor unit (GPU) manufacturer whose products excel in video gaming as well as cryptocurrency mining.
The stock currently trades at a steep 54.85 P/E ratio, well above the industry average (34.9). Despite optimistic forecasts and a positive margin growth trajectory over the past years, it is questionable how much is already priced in this hefty valuation.
Palo Alto Networks Inc. (NASDAQ: PANW)
| Ticker | Company | ±% | Price | Invest | ||
|---|---|---|---|---|---|---|
| PANW | Palo Alto Networks | -0.97% | $187.52 | Buy stock | ||
Palo Alto Networks Inc. (NASDAQ: PANW) is a leading cybersecurity company that provides advanced firewalls and cloud-based security solutions to enterprises, service providers and government entities worldwide. The company's core platform, Strata, offers next-generation firewall capabilities, while its Prisma and Cortex platforms provide cloud security and artificial intelligence-powered threat detection respectively.
Palo Alto ranks as one of the U.S.’s most valuable cybersecurity companies, with a market cap of $112.69 billion. It trades with a P/E ratio of 47.54, more than the U.S. informational technology service average (37.95).
Microsoft Corporation(NASDAQ: MSFT)
Microsoft Corporation (NASDAQ: MSFT) is a global technology leader that develops, manufactures and sells a wide range of software, hardware, and services. The company's product lineup includes the Windows operating system, Office productivity suite, Azure cloud computing platform and Xbox gaming consoles. Microsoft also offers enterprise solutions, artificial intelligence technologies and has expanded into social networking with its acquisition of LinkedIn.
With a market cap of 3.21 trillion, the stock currently trades at a reasonable P/E of 36.55, boosting a positive trend in both revenue and net margin growth.
AllianceBernstein Holding (NYSE: AB)
| Ticker | Company | ±% | Price | Invest | ||
|---|---|---|---|---|---|---|
| AB | AllianceBernstein Holding | -1.16% | $35.11 | Buy stock | ||
AllianceBernstein Holding (NYSE: AB) is an asset management company that invests in various financial instruments on the global market. Additionally, the company provides research services to individuals and business entities through its Bernstein Research subsidiary.
Financial stocks have been less popular in recent times, which is also the case with AllianceBernstein Holding, as it has a P/E ratio of 15.6. Although the analysts aren’t optimistic about future growth, expecting that it underperforms the industry, the company has impressive profit margins and a pristine balance sheet with no debt.
Broadcom Inc (NASDAQ: AVGO)
Broadcom Inc. (NASDAQ: AVGO) is a global technology company that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Its semiconductor solutions include products for wired infrastructure, wireless communications, enterprise storage and industrial applications. On the software side, Broadcom offers solutions for mainframe, cybersecurity and enterprise software optimization.
It has a $766.07 billion market cap, trading at an incredible 142.78 P/E ratio. Analysts forecast that the company will deliver 13% GAAP EPS growth in 2024 and 26.8% growth in 2025.
Vote Your Conscience
The U.S. Securities and Exchange Commission (SEC) defines insider trading as “buying or selling a security in breach of a fiduciary duty or other relationship of trust and confidence on the basis of material, nonpublic information about the security” and includes government employees and their associates who trade based on confidential information they learn because of their employment with the government.
Current efforts in both parties seek to change the rules on elected officials being able to trade stocks during their time in office. Democratic senators Jon Ossoff and Mark Kelly have sponsored a bill to restrict stock market trading for senators and congresspeople, as has Republican senator Josh Hawley.
Rep. Pelosi doesn’t support the move. In answer to a question asked during her Dec. 15, 2021, press conference asking if “members of Congress and their spouses [should] be banned from trading individual stocks while serving in Congress,” Pelosi answered in the negative, saying that the U.S. “is a free market and people — we are a free market economy. They should be able to participate in that.”
In light of the formidable power the American public invests in its elected officials of both parties, all of whom know far more than the average citizen about trends in the general economy and specifics about publicly traded companies, you may want to follow the progress of these two bills and let your elected representatives know what you think.
As always, be sure to come back to Benzinga for current financial and economic news.
Best Online Stock Brokers
If you're thinking about purchasing the same stocks as Rep. Pelosi, take a look at Benzinga's list of the top online stock brokerage firms.
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
- Best For:Global Broker for Short SellingVIEW PROS & CONS:securely through TradeZero's website
Final Thoughts on Buying Pelosi's Stocks
When considering buying stocks that Nancy Pelosi owns, it is important to thoroughly research and understand the implications. While it may seem like a good idea to invest in companies that a high-profile individual like Pelosi is affiliated with, it is crucial to consider factors such as conflicts of interest, ethical considerations and overall market trends. Making informed decisions based on research and analysis will ultimately lead to a smarter and more successful investment strategy, regardless of who owns the stocks.
Frequently Asked Questions
Does Congress have an insider trading problem?
Insider trading by a member of Congress is a crime. However, it is not easy to prove that the accused engaged in illicit activity.
Despite public knowledge that senators Kelly Loeffler, James Inhofe and Dianne Feinstein made significant trades on the day of the briefing with the CDC Director regarding the COVID-19 pandemic in January 2020, the U.S. Department of Justice eventually discontinued an investigation into their actions in May 2020. An investigation into Senator Richard Burr’s insider trading on the same information closed this month with no charges filed.
Meanwhile, according to Unusual Whales — a service that tracks the large stock and unusual option flow movement — in 2021, members of Congress bought and sold $290 million worth of equities throughout the year and beat the market.
Who can trade on insider information?
Insider trading based on material, nonpublic information about a company is forbidden. Although often a subject of academic debate, insider trading creates an unfair situation because of asymmetrical information access.
This rule doesn’t mean that insiders aren’t allowed to trade any stocks. They can buy and sell stocks as long as the activity doesn’t concern material information that is not yet available to the public.
Furthermore, they have to report their trades to regulators like the SEC where the information will be publicly available.
Is Nancy Pelosi the best trader?
Nancy Pelosi is at the forefront of leading Democrats as the top stock traders in Congress in 2023, with an average gain of 31.18%.
About Stjepan Kalinic
Forex, Equity Analysis, and Financial Education