THE STUDY OF THE PELOSI'S FROM 2011 - 2022
Chapter 1
Title: The PELOSI Act: A Proposal to Ban Lawmakers from Trading Stocks
In a recent move, Senator Josh Hawley (R-Mo.) has introduced the PELOSI Act, a bill that would prohibit lawmakers and their spouses from owning and trading stocks while in office. The bill, whose title is “Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act,” takes a dig at its namesake, former House Speaker Nancy Pelosi (D-Calif.).
The PELOSI Act aims to address the issue of politicians taking advantage of the economic system for their own profit at the expense of the American people. According to Senator Hawley, "As members of Congress, both Senators and Representatives are tasked with providing oversight of the same companies they invest in, yet they continually buy and sell stocks, outperforming the market time and again.” He also stated that, “While Wall Street and Big Tech work hand-in-hand with elected officials to enrich each other, hardworking Americans pay the price.”
To address this issue, the bill would give elected representatives a six-month grace period to either divest their holdings or place them in a blind trust during their tenure in office. Furthermore, the bill hopes to eliminate the perceived conflict of interest that arises when legislators are involved in regulating the industries in which they own stocks.
It is worth noting that Pelosi and her husband are said to own tens of millions of dollars worth of stocks and made millions by dint of their ownership in shares of tech behemoths such as Facebook, Google, Amazon, Apple, and Microsoft, according to publicly available disclosure forms.
This is not the first time the issue of legislators trading stocks has been brought up. In fact, it has been a contentious topic that has prompted bipartisan calls for a ban. However,
Pelosi has previously indicated that she would not support legislation to bar legislators from trading stocks. But fierce criticism prompted Pelosi to change her stance and express support for overhauling the system.
In conclusion, the PELOSI Act is a step in the right direction to address the issue of legislators taking advantage of the economic system for their own profit at the expense of the American people. It remains to be seen whether the bill will pass and become law.
Chapter 2
Title: The Stock Purchases of Paul Pelosi: A Closer Look
Introduction
Paul Pelosi, the husband of Speaker of the House Nancy Pelosi, has been the subject of media scrutiny in recent years due to his timely stock purchases. The latest controversy surrounds a stock purchase of more than $1 million in Nvidia, a computer chip company, just weeks before a congressional vote that would provide massive subsidies to the industry. In this blog post, we will take a closer look at Paul Pelosi's stock purchases and the questions they raise about insider trading.
Background
Paul Pelosi is the owner of a San Francisco investment and consulting firm. He has been the subject of media attention for his stock purchases for quite some time. For example, in summer 2021, Paul cashed in on big tech shortly before the House Judiciary Committee voted to curtail the "unregulated power" of companies like Google and Amazon (Fortune). A few months before that, Paul picked up millions of dollars worth of Microsoft stock just days before the company announced a lucrative government contract (Fox Business).
Stock Purchases
Nvidia: In July 2022, Paul Pelosi purchased more than $1 million in Nvidia, a computer chip company, just weeks before a congressional vote that would provide massive subsidies to the industry (Fox Business).
Alphabet: In summer 2021, Paul cashed in on big tech shortly before the House Judiciary Committee voted to curtail the "unregulated power" of companies like Google and Amazon. Paul purchased 4,000 shares of Alphabet, Google's parent company, by exercising call options a week before the vote. The call options allowed him to snag the shares of Alphabet at $1,200 a piece as they closed that day at just over $2,500, earning Paul $5.3 million on the investment (Fortune).
Microsoft: A few months before the Alphabet purchase, Paul picked up millions of dollars worth of Microsoft stock just days before the company announced a lucrative government contract. Paul exercised call options and paid $1.95 million to buy 15,000 shares of Microsoft at a strike price of $130 on March 19. That same day, Paul paid $1.4 million for 10,000 shares valued at $140. Microsoft announced a government contract worth nearly $22 billion to supply U.S. Army combat troops with augmented reality headsets just twelve days after Paul's purchase, and the company's share prices increased from about $230 to roughly $255 – or close to 11% - in the weeks following the announcement (Fox Business).
Tesla: Months before the Microsoft purchase, Paul snagged up between $500,000 and $1 million in Tesla investments in December 2020, or roughly a month before President Biden announced the federal government would transition its fleet to electric vehicles (Washington Post).
Questions Raised
Paul Pelosi's stock purchases raise questions about insider trading. Lawmakers' spouses can trade in companies or industries their partner may help regulate, but it's illegal for family members and members of Congress to profit from inside information.
"The Pelosi family's pattern of appearing to use her Speakership for their own personal financial benefit continues to raise red flags," said Caitlin Sutherland, executive director of Americans for Public Trust. "And Mr. Pelosi's latest stock purchase in a company set to receive a massive subsidy from Congress is no different," she added. "It now seems they have thrown caution entirely to the wind, turning the Speaker's gavel into one giant golden parachute" (Fox Business).
Conclusion
Paul Pelosi's stock purchases, especially in relation to congressional votes, raise questions about insider trading. While lawmakers' spouses can trade in companies or industries their partner may help regulate, it is illegal
Chapter 3
Nancy Pelosi's Stock Analysis
Analyzing Nancy Pelosi's 5 Newest Stock Trades
Jun. 29, 2011
For better or worse, members of Congress these days have no restrictions keeping them from buying equities. This makes looking at their portfolios especially interesting. We decided to take a look at the holdings of House Minority Leader Nancy Pelosi. Fortunately for us, it turns out that Pelosi is quite the active investor. In fact, she was one of the wealthiest representatives that we looked at, while also being one of the most active traders.
In addition to multiple valuable California real estate holdings, Pelosi owns a Napa vineyard, and stakes in several private businesses, including the United Football League and its Sacramento-based team. Interestingly, she added significantly to these football-based investments late in 2010. Nonetheless, we will focus on her stock holdings. While there are too many to mention in one article, the following are some of Pelosi’s largest holdings and recent trades.
Apple (AAPL): As a representative of California, it is only fitting that Pelosi is a big investor in the state’s most iconic company, Apple. Even after cashing in on millions of dollars in shares in 2010 (for capital gains of $1M-5M), Apple remains her second largest common stock holding, with a year-end asset value between $500,000 and $1,000,000.
Apple has been one of the biggest success stories of the past decade, rising to become the second largest company in the world by market cap. Its innovative products have brought market dominance and a customer base as loyal as any. As expected, Apple’s financials are excellent. In addition to TTM ROE of 38% and an operating margin of 29%, the company has an impeccable balance sheet. The current P/E of 15.5 is higher than the main PC makers, but lower than much of the tech industry, and the PEG of .7 is very attractive.
Worries about CEO Steve Jobs’ health remain, but despite his obvious importance, we don’t see the company falling off in his absence. Overall, Apple may be maturing, but it still has plenty of growth opportunity to go along with its established success. With a relatively cheap valuation, considering its quality, we think Apple is a good buy right now.
Visa (V): Visa is the largest equity holding in Pelosi’s portfolio, with a total asset value between $1-$5 million. As people continue to build up more and more debt, especially in emerging markets, there are plenty of reasons to like Visa. With a market cap of $62B, it is one of the largest credit card companies. Its operating margin of 58% is exceptional, and earnings grew over 25% in the last year. Despite this earnings growth, the stock is actually down 2% in the last 12 months, an early sign of good value.
Furthermore, consensus EPS estimates, which Visa has been consistently beating lately, project EPS to grow significantly in the next few years. The trailing P/E of 16.6 and price/book of 2.4 are lower than those of its big rival Mastercard (MA), but higher than several other main competitors. The firm has a very favorable balance sheet, with almost no debt at all. Visa’s PEG of .7 is also very attractive, a sign of its growth prospects.
When you combine the growth in online shopping and the increase in private debt via credit cards with Visa’s strong position in a market with substantial barriers to entry, it is easy to see why Visa should be successful moving forward. This will especially be the case as they develop even newer, easier ways to use your credit card, such as the new Isis system being tested in Austin and Salt Lake City. We think that Visa is another good buy right now because of the valuation and its qualitative prospects.
Cisco (CSCO): This is one that Pelosi actually does not own anymore, but rather one that she used to have major holdings in, selling them all in the last year. She sold around $1M worth of shares for a capital loss of $100,000-$1M. Turns out that she made a good decision, at least in the short run. Cisco has been hammered lately, losing over 30% since Pelosi’s sales, and down 24% year-to-date. A tech giant and former superstar, this networking solutions company has a market cap of $84B and offers a 1.6% dividend. We think there's reason to like Cisco, even though it is likely out of its high growth stage.
The company’s beating has made it a very cheap buy. Its price has fallen chiefly because of concerns about its efficiency and its ability to hold off market competitors. In response, the company is cutting its peripheral operations to focus on its core products, hoping to avoid becoming bloated. Cisco has a P/E of 12, which is low for its industry, and also has very little debt. Its operating margin of 20% is still respectable as well. As mentioned, we admit that Cisco may have seen the end of its high growth days, but we still think it is a strong company, and with its P/E at its lowest point in five years, Cisco looks like a good value to us.
Yahoo (YHOO): Yahoo! is another stock that Pelosi sold off for a substantial loss during the period. According to the filing, she sold up to $250,000 worth of stock for a loss of $100,000-$1M. Since the time of her sale, Yahoo has been up and down, but is currently down around 8% from the time of her sale. Things have taken a turn for the worse for Yahoo! as it continues to lose ground to competitors like Google (GOOG). Its Internet search business has fallen way behind Google’s, and even Microsoft’s (MSFT) Bing has entered the picture. Despite this weakness, Yahoo’s real value is derived from its news and other articles. Yahoo! Sports remains the most visited sports site on the web, Yahoo! Finance is a major source of financial news, and the front page remains a popular visit for its news and interest stories.
The company has had issues with its holdings of China’s Alibaba (OTC:ALBCF), although it could turn out to be a very valuable holding, and shareholders are calling for the CEO to be fired. Even though revenue has fallen the last few years, EPS has been on the rise and is expected to grow even more. Yahoo has a P/E of 17, just below Google’s P/E of 18.5. Its PEG is just over 1, compared to Google’s of .6. We are overall neutral on Yahoo. On one hand, it has gotten somewhat cheap from all the bad press, considering that it is still a major player on the web (it is still No. 2 in online display ad revenue), and earnings are growing. On the other hand, there are certainly reasons for worry, as mentioned above, and with the similar valuations, we would go with Google before Yahoo.
eBay (EBAY): eBay fits into the same category as Yahoo! regarding Pelosi’s portfolio: She emptied her position, worth up to $250,000 for a loss of $100,000-$1M. However, her sale of eBay is the first big mistake in her trading. Pelosi missed out on substantial gains with her sale, as the stock has shot up over 25% since then. The sale may have been political though, as ex-eBay CEO Meg Whitman emerged as a high profile candidate in the California governor’s race. eBay is somewhat unique, as it does not have any big competitors that offer the same thing as its bread and butter auction marketplace. The company has a market cap of $36.8B, and is trading at a P/E of 20. Despite Craigslist’s rise, eBay’s revenue has been growing consistently the last five years, as online shopping becomes easier and more widespread. PayPal is one of the most widely accepted online payment methods around, and should grow with the rise of smartphones, tablets, etc.
eBay should also see plenty of growth opportunities abroad, and it owns, or owns part of, an impressive stable of other websites and online services.
Perhaps one of the most exciting developments for eBay is that it is planning fulfillment centers (handling, packaging, etc.) for its merchants, which could help it steal business from its larger competitor Amazon (AMZN).
As mentioned before, eBay is a little hard to compare with other companies, but what we’ve seen looks good.
Its valuation is way below Amazon’s, and despite being less than half of the market cap, eBay had higher net income for 2010. In general, there seems to be a lot to like about eBay, so we say it’s a buy. The company is well diversified, has plenty of growth opportunities, and has a solid valuation.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
POLITICS
Nancy Pelosi's husband has stirred scrutiny for years over his stock purchases
Paul Pelosi, the speaker's husband, has garnered media attention for his timely stock purchases
By Joe Schoffstall
Reporter asks Pelosi if her husband has ever bought stocks based on information she has received: "Absolutely not"
A reporter asked Speaker of the House Nancy Pelosi if her husband, Paul, had ever bought or sold stocks using information she had received to which she responded, "No, absolutely not."
Speaker of the House Nancy Pelosi found herself in the center of a firestorm following one of her husband's most recent stock purchases, but his stock purchases have caught the media's attention and come under scrutiny for quite some time.
Pelosi's latest headache ignited after her husband Paul, who owns a San Francisco investment and consulting firm, bought more than $1 million in Nvidia, a computer chip company, just weeks before a congressional vote that would provide massive subsidies to the industry.
Pelosi said that Paul has never made stock purchases based on information she gave him when pressed by Fox News Digital on July 21. Her office also put the California Democrat at arm's length away from Paul's financial decisions.
"The Speaker does not own any stocks," Drew Hammill, Pelosi's communications director, told FOX Business. "The Speaker has no prior knowledge or subsequent involvement in any transactions."
PELOSI SAYS HER HUSBAND NEVER MADE STOCK PURCHASES BASED ON INFO SHE GAVE HIM
Nancy Pelosi found herself under fire for a recent stock purchase made by her husband, Paul. (Chip Somodevilla / Getty Images)
But the headline-grabbing trade wasn't the first time Pelosi - who is among the wealthiest members of Congress - has garnered attention for her husband's stock timing.
During summer 2021, Paul cashed in on big tech shortly before the House Judiciary Committee voted to curtail the "unregulated power" of companies like Google and Amazon, Fortune reported. The move, however, wasn't considered a threat to the companies, and the tech firms' stock prices continued to rise.
Paul, meanwhile, had purchased 4,000 shares of Alphabet, Google's parent company, by exercising call options a week before the vote. The call options - which give investors the right to buy shares of a company at a specific price - allowed him to snag the shares of Alphabet at $1,200 a piece as they closed that day at just over $2,500, according to Fortune. Paul earned $5.3 million on the investment at the time.
Paul Pelosi, the speaker's husband, has received media attention for his stock purchases in recent years.
A few months before the Alphabet purchase, Paul picked up millions of dollars worth of Microsoft stock just days before the company announced a lucrative government contract.
Paul exercised call options and paid $1.95 million to buy 15,000 shares of Microsoft at a strike price of $130 on March 19, Fox Business reported. That same day, Paul paid $1.4 million for 10,000 shares valued at $140.
Microsoft announced a government contract worth nearly $22 billion to supply U.S. Army combat troops with augmented reality headsets just twelve days after Paul's purchase, and the company's share prices increased from about $230 to roughly $255 – or close to 11% - in the weeks following the announcement.
NANCY PELOSI'S OFFICE RESPONDS TO HUSBAND'S CONTROVERSIAL COMPUTER CHIP STOCK PURCHASE AHEAD OF CONGRESS VOTE
And months before the Microsoft purchase, Paul snagged up between $500,000 and $1 million in Tesla investments in December 2020, or roughly a month before President Biden announced the federal government would transition its fleet to electric vehicles.
Biden, who was open about moving toward electric vehicles, in late January 2021, "directed federal officials to devise a plan for converting all federal, state, local and tribal fleets, including 225,000 Postal Service vehicles, to "clean and zero-emission vehicles," the Washington Post reported.
Biden's infrastructure plan later set aside more than $170 billion for electric vehicle subsidies.
Paul Pelosi's lucrative investments raises questions about insider trading
Florida congresswoman Kat Cammack breaks down Nancy Pelosi's husband investing in computer chip stock on 'The Evening Edit.'
"The Pelosi family's pattern of appearing to use her Speakership for their own personal financial benefit continues to raise red flags," Caitlin Sutherland, executive director of Americans for Public Trust, told FOX Business.
"And Mr. Pelosi's latest stock purchase in a company set to receive a massive subsidy from Congress is no different," Sutherland added. "It now seems they have thrown caution entirely to the wind, turning the Speaker's gavel into one giant golden parachute."
Lawmakers' spouses can trade in companies or industries their partner may help regulate, but it's illegal for family members and members of Congress to profit from inside information.
Congressional members, meanwhile, consistently beat the market, according to an Unusual Whales analysis from earlier this year.
The analysis found that lawmakers traded $290 million in stocks and other assets last year and, on average, outperformed the market, Reuters reported.
POLITICS Updated on July 27, 2022 2:16am EDT
Nancy Pelosi's husband has stirred scrutiny for years over his stock purchases
Paul Pelosi, the speaker's husband, has garnered media attention for his timely stock purchases
Reporter asks Pelosi if her husband has ever bought stocks based on information she has received: "Absolutely not"
A reporter asked Speaker of the House Nancy Pelosi if her husband, Paul, had ever bought or sold stocks using information she had received to which she responded, "No, absolutely not."
Speaker of the House Nancy Pelosi found herself in the center of a firestorm following one of her husband's most recent stock purchases, but his stock purchases have caught the media's attention and come under scrutiny for quite some time.
Pelosi's latest headache ignited after her husband Paul, who owns a San Francisco investment and consulting firm, bought more than $1 million in Nvidia, a computer chip company, just weeks before a congressional vote that would provide massive subsidies to the industry.
Pelosi said that Paul has never made stock purchases based on information she gave him when pressed by Fox News Digital on July 21. Her office also put the California Democrat at arm's length away from Paul's financial decisions.
"The Speaker does not own any stocks," Drew Hammill, Pelosi's communications director, told FOX Business. "The Speaker has no prior knowledge or subsequent involvement in any transactions."
As per the analysis, the article suggests that Apple (AAPL) is a good buy right now due to its relatively cheap valuation, considering its quality. The company has an impeccable balance sheet, a TTM ROE of 38% and an operating margin of 29%. Despite worries about CEO Steve Jobs’ health, the company has plenty of growth opportunity to go along with its established success.
Similarly, Visa (V) is also a good buy right now because of its strong position in a market with substantial barriers to entry. Visa has a market cap of $62B, its operating margin of 58% is exceptional, and earnings grew over 25% in the last year. The firm has a very favorable balance sheet, with almost no debt at all, and its PEG of .7 is also very attractive, a sign of its growth prospects.
Cisco (CSCO) is another stock that the article suggests to be a good buy due to its low price. The company has been hammered lately, losing over 30% since Pelosi’s sales, and down 24% year-to-date. Cisco is a strong company, and with its P/E at its lowest point in five years, Cisco looks like a good value to the article.
CHAPTER 5
Nancy Pelosi's Stock Portfolio: A Closer Look
Introduction
As members of Congress are not restricted from buying equities, looking at their portfolios can be quite interesting.
In this article, we will take a closer look at the stock holdings and recent trades of House Minority Leader Nancy Pelosi.
Pelosi is quite the active investor, with a diverse portfolio including real estate holdings, a Napa vineyard, and stakes in private businesses.
Apple (AAPL)
Pelosi is a big investor in California's most iconic company, Apple.
Even after cashing in on millions of dollars in shares in 2010, Apple remains her second largest common stock holding, with a year-end asset value between $500,000 and $1,000,000.
Apple's financials are excellent, with a TTM ROE of 38% and an operating margin of 29%.
The company has an impeccable balance sheet and a relatively cheap valuation, considering its quality.
Visa (V)
Visa is the largest equity holding in Pelosi's portfolio, with a total asset value between $1-$5 million.
Visa is one of the largest credit card companies, with a market cap of $62B and an operating margin of 58%.
Earnings grew over 25% in the last year, and consensus EPS estimates project growth in the next few years.
The stock is down 2% in the last 12 months, an early sign of good value.
Cisco (CSCO)
Pelosi used to have major holdings in Cisco, but sold them all in the last year for a capital loss of $100,000-$1M.
Cisco has been hammered lately, losing over 30% since Pelosi's sales and down 24% year-to-date.
Despite the recent struggles, we think there's reason to like Cisco, as it is likely out of its high growth stage and is now a very cheap buy.
The company is cutting its peripheral operations to focus on its core products, and has a P/E of 12 which is low for its industry.
Yahoo (YHOO)
Pelosi sold off Yahoo for a substantial loss during the period, with a loss of $100,000-$1M.
Since the time of Pelosi's sale, the stock has continued to decline, down over 40% since then.
Yahoo has struggled to keep up with the rapid pace of change in the technology industry, and its future growth prospects are uncertain.
Conclusion
Pelosi's stock portfolio is diverse and active, with investments in well-established companies such as Apple and Visa, as well as in former tech giants like Cisco and Yahoo.
While some of her trades have resulted in losses, she has also made wise investments that have paid off well.
Overall, Pelosi's portfolio is a good example of the risks and rewards of investing in the stock market.
Source:
Zilber, Ariel. "Sen. Josh Hawley Introduces ‘PELOSI Act’ to Ban Lawmakers from Trading Stocks." New York Post, 25 Jan. 2023, nypost.com/2023/01/25/sen-josh-hawley-introduces-pelosi-act-to-ban-lawmakers-from-trading-stocks/.
"Nancy Pelosi's 5 Newest Stock Trades." The Motley Fool, 29 Jun 2011. Web. [Date accessed]. https://www.fool.com/investing/insider-trading/nancy-pelosis-5-newest-stock-trades/.
"Nancy Pelosi's Stock Trades Raise Questions About Insider Trading in Congress." Business Insider, Business Insider, 20 July 2022, https://www.businessinsider.com/nancy-pelosi-stock-trades-congress-investments-2022-7?amp.
