It’s very easy to get the impression that our political leaders don’t know how to manage money. After all, the deficit is soaring, the national debt is staggering, inflation refuses to be tamed, and things have been getting worse for decades. But this is true when leaders manage OPM – other people’s money. They’re quite savvy when managing their own.
Want proof? Check how much money our recent presidents had before they took office and their net worth when they left. All did very well, with only one exception. Granted, money managers handled their assets, but those presidents certainly monitored how those money managers were doing.
Money Smarts
When Ronald Reagan was elected for the first time in 1980, his net worth was $10 million. Eight years later, when he left office, it had grown to $15 million – not even close to making him the richest person in the world or even the richest president, but a respectable 50% gain nonetheless.
Reagan was succeeded by George H.W. Bush, who had an estimated $4 million. When his four-year term ended, that had grown to a very impressive $23 million.
When Bill Clinton was elected in 1992, his net worth was a very modest $1.3 million. Fast forward eight years to 2000 when he left office. By then, his net worth was $241.5 million, an amazing percentage increase, the best of any President. Clinton’s dollar gains also put him in first place.
In 2000 George W. Bush, the son of the former President George H.W. Bush was elected. “Dubbya’s” net worth also increased significantly during his presidency. The $24 million he had when elected had increased to $40 million in 2008 when he left office.
2008 was another presidential election year, and the nation elected Barack Obama, the first African American to hold that position. Obama also entered office with a very modest $1.3 million net worth, tying him with Clinton. But eight years later he left with $70 million – not nearly the percentage gain Clinton enjoyed but a very enviable one nevertheless.
The One And Only
And then there’s Donald J. Trump, a very successful businessman and the first billionaire elected President. Trump had an estimated $3.7 billion when elected. However, estimates are he lost between $700 million and $1-billion-plus while in office.
Ironically, Trump lost money in real estate, the business he knew best and which made him a billionaire. There are various explanations as to how this happened. According to Bloomberg, “Many of Trump’s businesses – hotels, casinos and office spaces – have been decimated by the pandemic as workplaces shut down and tourism came to a halt due to global travel restrictions.” Another explanation, this one from Forbes, says that some of his losses were related to politics.
Good, And Even Better
Some people are very successful investors; others do even better. One in the “even better” group is Nancy Pelosi, a Democrat Congresswoman from California, who was the first woman to serve as Speaker of the House. Of all the legislators who invest in the market, Pelosi has one of the best records, which explains why sharp investors watch everything she buys and sells very carefully.
Some investors may be surprised at just how good she is. Over the last 10 years, her portfolio grew by a very enviable 767% -- far outperforming the S&P 500, which added 218% during this period.
According to market website Dividend Talks, one of her most recent purchases was call options on Amazon. A call option is a contract that gives the owner the right to purchase a stock at a specified price within a specific period of time. Trading options is very risky. Speculators buy and sell them in the hope of making a lot of money quickly, and some of them do. But most – as many as 85% – lose money trading options.
Pelosi’s purchase of Amazon call options suggests she believes the price of those shares will rise. More precisely, that they’ll continue to rise, as Amazon shares are up nearly 50% in the last year. Dividend Talks reports she risked an estimated $250,000 - $500,000 to buy those options.
Another stock Pelosi recently purchased is Google (Alphabet). As with Amazon, she invested an estimated $250,000 - $500,000 in this company. And also like Amazon, its shares were also a strong performer over the last year, increasing by some 35%. And this was not just a fluke. Over the last 10 years, shares in Google soared 623%! Both of these companies very recently were trading near their 52-week highs, and both are highly rated by Wall Street.
Since late December, Pelosi also made three trades in the AI firm NVIDIA. In the first, she purchased a block of stock for an estimated $500,000 - $1 million. Just a few days later, she sold some of them. And on January 14, she bought call options in the company, again risking an estimated $250,000 - $500,000.
NVIDIA was recently trading at approximately $147/share, up from $60 a year ago for a gain of about 146%. The stock has appreciated an amazing 26,000% in the last 10 years, and apparently Pelosi believes it may continue its winning ways.
Among other very recent trades she made:
*adding significantly to her position in Palo Alto Networks;
*buying options in VST;
*and selling a large number of shares in Apple.
Under The Magnifying Lens
A closer look at Pelosi’s trades shows that she invests/trades in highly regarded companies, as opposed to taking “moon shots.” Obviously, Pelosi is very wealthy. At the end of July 2024, Investopedia estimated that she had more than $240 million, which means she can afford to take risks that most of us cannot. Also, there’s been a lot of activity in her account lately, buying and selling both stocks and options. A word to the wise: While there’s logic in studying the trades of any very successful investor, no one has a perfect record – and that includes Pelosi.
Readers, please note: The companies listed above are mentioned for information purposes only and are not, in any way, an endorsement or recommendation to buy or sell any of them. As always, investors should consult with a financial advisor before making any investment decisions.
Sources: bloomberg.com; forbes.com; fortune.com; investopedia.com; zerohedge.com; YouTube: Dividend Talks: Nancy Pelosi Buys More Stocks And Sells Big
Gerald Harris is a financial and feature writer. Gerald can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.