Former House Speaker Nancy Pelosi and her husband, Paul Pelosi, have once again turned heads with their remarkable financial prowess. In 2024, their stock portfolio soared by 70.9%, outpacing the S&P 500 index by a staggering 200%. This performance continues a streak of outsized returns for the Pelosis, whose combined net worth is now estimated at nearly $250 million.
According to the 2024 Congress Trading Report by financial analytics firm Unusual Whales, the Pelosi portfolio’s gains eclipsed its impressive 2023 performance of 65.5%, which had already outperformed the S&P 500 by 164%. Their consistent ability to outpace the market has led to widespread speculation about the source of their success.
The Pelosis’ financial achievements in 2024 put them ahead of some of the most prominent names in investing. They outperformed Citadel, a hedge fund with $66 billion in assets under management, and Discovery Capital, a 25-year veteran in asset management. Even Warren Buffett’s Berkshire Hathaway, which delivered a robust 27.1% return in 2024, lagged far behind Pelosi’s gains.
What’s their secret? While Paul Pelosi, an investment banker, executes the trades, the strategy involves purchasing call options — contracts that allow the buyer to purchase stocks at a predetermined price — on large technology companies after price drops. This approach proved highly effective in 2024. For example:
- Nvidia: Contracts to purchase shares of the semiconductor giant finished the year up 273%.
- Palo Alto Networks: The Pelosis saw gains of 93% on contracts tied to the cybersecurity company.
However, some critics suggest that Pelosi’s success might be tied to more than just savvy trading.
As a long-time member of Congress, Nancy Pelosi has had access to insider information about pending legislation and policy changes, which critics argue could influence market outcomes. One high-profile example came in January 2023, when Pelosi sold over $1.5 million in Alphabet (Google’s parent company) stock just one month before the Department of Justice announced an antitrust lawsuit against the tech giant.
While Pelosi has denied any wrongdoing, the timing raised eyebrows. Critics claim such trades exemplify the need for stricter regulations on stock trading by public officials.
Calls for reform came to a head in early 2023 when Senator Josh Hawley (R-MO) introduced the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act. This legislation aimed to bar members of Congress from trading individual stocks. Despite bipartisan calls for change, the bill failed to gain traction.
Hawley argued that the law would prevent conflicts of interest and restore public trust, stating, “If members of Congress want to invest, they can do so in broad-based mutual funds, like everyone else.”
Remarkably, Nancy Pelosi’s returns weren’t even the highest among members of Congress in 2024. She ranked ninth on Unusual Whales’ list of top-performing politicians. As a group, U.S. lawmakers have outperformed the stock market every year since 2020, sparking renewed scrutiny of Congress’s trading practices.
While some chalk up the success to coincidence or expertise, others believe these gains reflect the unique advantages lawmakers hold. For instance, access to classified briefings and advanced notice of regulatory changes could provide opportunities unavailable to ordinary investors.
The Pelosis’ 2024 performance has reignited public debate over the ethics of congressional stock trading. Social media users and political commentators have voiced frustration over what they see as a double standard.
One user tweeted:
“How is it fair for Congress to make millions off stock trades while the rest of us struggle with inflation and a volatile market?”
Advocates for reform argue that allowing lawmakers to trade stocks undermines public confidence in government and creates the perception of corruption. Proposals for change include mandatory blind trusts for elected officials and an outright ban on individual stock ownership.
The Pelosi portfolio exemplifies a broader issue: the intersection of politics and financial markets. Critics argue that without stricter regulations, trust in both institutions will erode further. Proponents of reform hope that growing awareness of the issue will lead to meaningful change.
BREAKING
I have just released the full report on politicians trading in 2023.
Like every year since 2020, US politicians beat the market.
And many in Congress made unusually timed trades resulting in huge gains.
Here are the top performers of 2023. pic.twitter.com/ykf9VICsBw
— unusual_whales (@unusual_whales) January 2, 2024
For now, the Pelosis’ financial success continues to fuel intrigue and debate. Whether it’s skill, luck, or access to privileged information, their ability to consistently outpace the market has cemented their reputation as two of the most successful investors in politics.
As Congress considers its next steps, one thing is clear: the spotlight on lawmakers’ stock trading isn’t going away anytime soon.
