Nancy Pelosi Stock Trades: Nancy Pelosi is a frequent subject of media scrutiny. Her position as Speaker of the House has put her in the spotlight, and her activities, remarks, and political decisions spark heated debates between her supporters and opponents. One topic has come up repeatedly over the past ten years – the investment decisions of Pelosi’s husband, Paul.
Venture capitalist Paul Pelosi has been a part of the financial world for decades. Thanks to his stock market prowess, Paul and Nancy Pelosi’s net worth is estimated at $46.1 million.
While some detractors have suggested that Nancy Pelosi’s access to nonpublic financial information gives Paul an unfair advantage, what is undeniable is that the Pelosis have developed a strong portfolio of quality stocks.
These are five Nancy Pelosi stocks to watch:
What Does AllianceBernstein Holding LP Do?
AllianceBernstein Holding LP isn’t a household name, so many investors overlook this Nancy Pelosi stock. The company is owned by Equitable Holdings, and it provides a selection of research, investment, and wealth management services for wealthy clients.
Since 1988, the stock is up more than 1,400 percent, and it has increased nearly 60 percent over the past five years. AllianceBernstein Holding LP stock went down in 2022, and regulatory filings show that the Pelosis took advantage of the lower price to increase their position. In fact, they have been buying AllianceBernstein Holding LP stock regularly for years.
The three most recent trades include:
December 2020 – Purchased 20,000 shares
February 2021 – Purchased 40,000 shares (two transactions)
January 2022 – Purchased 10,000 shares
AllianceBernstein Holding LP stock is particularly attractive due to its large dividend. As of December 2022, the dividend yield is more than 11 percent.
What Is The Difference Between GOOGL and GOOG?
When Google restructured and the search engine became a subsidiary of Alphabet, its shares continued to trade under ticker symbols GOOGL and GOOG. GOOGL references the company’s Class A stock, while GOOG is the symbol for Class C shares. The primary difference between the two is voting rights – Class A shares have them, and Class C shares don’t.
Paul and Nancy Pelosi own both Alphabet stock classes. Their most recent acquisitions of GOOGL and GOOG came from exercising call options.
Specifically, the Pelosis exercised 40 call options and added 4,000 Class A shares of Alphabet to their portfolio in June 2021.
They purchased ten call options for Class C Alphabet stock in December 2021 and exercised 200 call options for 20,000 shares of GOOG stock in September 2022. Note that the stock split between the purchase and exercise of these call options.
In large part, Alphabet is a Pelosi stock because the Pelosis believe it is likely to go up long-term. However, their acquisition of GOOGL and GOOG stock was made more profitable by their use of an effective options strategy.
Is Microsoft Stock A Buy?
No one denies Microsoft’s outsized role in taking computer technology mainstream, but in recent years, some investors have started to doubt whether Microsoft stock is still a buy.
Since the company went public, share prices have increased by more than 250,000 percent, but Microsoft stock has gone up less than 200 percent in the past five years. Year-to-date in 2022, it is down nearly 25 percent.
Paul and Nancy Pelosi are not among the doubters. Instead, they have continued to build their position in Microsoft over the past two years. In March 2021, Paul and Nancy Pelosi exercised 250 call options totaling 25,000 shares (two transactions), and they purchased 50 more call options in May 2022 (two transactions).
In addition to the profits realized through smart options trading, the Pelosis appear confident that Microsoft remains a buy.
The company’s revenue is sensitive to business cycles because sales depend on business investment in hardware, software, and cloud infrastructure.
Demand for such products has been relatively low this year due to high inflation, higher interest rates, and the subsequent concern over spending that has plagued major corporations, but that doesn’t mean Microsoft is out of the game.
There are signs of slowing inflation, which should reduce the need to increase interest rates. If so, Microsoft stock will go up in the coming months, making it one of the Nancy Pelosi stocks to watch.
Did Paul And Nancy Pelosi Sell Visa Stock?
Every investor knows that adding stocks to a portfolio is only part of a comprehensive trading strategy. Selling shares with a poor long-term outlook is just as critical to financial success.
It’s worth noting that on November 8th, Paul and Nancy Pelosi let go of a large chunk of Visa stock – 20,000 shares, to be exact. The estimated value of those shares is a bit over $4 million. Note that this is in addition to the sale of 10,000 shares on June 21st.
It isn’t clear why the Pelosis decided to sell Visa stock. The company has been a solid performer for years, making it one of billionaire Warren Buffett’s favorite assets.
Visa is up roughly three percent since Paul and Nancy Pelosi traded in their shares, which suggests that this is one move that investors should not duplicate. At least not yet. Until more information is available, Visa is undoubtedly one of the Nancy Pelosi stocks to watch.
Why Did Nancy Pelosi Sell NVIDIA Stock?
Paul and Nancy Pelosi closed out their position in leading tech company NVIDIA through the sale of 25,000 shares in July 2022 and lost more than $340,000 as a result.
NVIDIA stock is down almost 40 percent year-to-date, so it’s easy to assume that the Pelosis sold their entire position in NVIDIA to avoid losses. However, there is more to the story.
The Pelosis had been steadily building their stake in NVIDIA for some time. In June 2021, they bought 50 call options along with 5,000 shares, and they added another 50 call options in July 2021.
Then, in June 2022, they exercised 200 call options for a total of 20,000 shares. That raised some eyebrows, given legislation pending in the House of Representatives that could directly impact NVIDIA’s future. Detracters said that the Pelosis traded on inside information, and before long, the couple was embroiled in a full-blown scandal.
Paul Pelosi said that selling NVIDIA stock was intended to resolve the perceived conflict, but the move may have come too late.
Because the stock went down, the Pelosis’ decision to sell allowed them to avoid deeper losses. Politics aside, NVIDIA remains one of the world’s most in-demand producers of GPUs, so the company is one to watch despite Paul and Nancy’s decision to sell NVIDIA stock.
The Nancy Pelosi ETF
Investors interested in trading like Nancy Pelosi don’t have to try and keep up with regulatory filings. In March 2022, the Insider Portfolio ETF (INSDR) launched with the goal of mirroring Paul and Nancy Pelosi’s trades. The concept is simple: the Pelosis have enjoyed above-average returns, so they must be doing something right.
Of course, the ETF’s returns won’t match the Pelosi portfolio because trades must wait until regulatory filings are made public. Nonetheless, the fund managers believe they can deliver a portion of the profits earned by the Pelosis by focusing on the same stocks.
The ETF is new, but the theory behind it has been around for many years. A number of investors have been mirroring trades made by members of Congress because they believe that lawmakers have insider information that prompts their personal trading decisions.
In other words, though the information might not be public, the resulting trades are. Investors who base their decisions on congressional trades believe that, in this way, they can benefit from insider information without knowing exactly what the information is.
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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.