Congress’ Stock Trades Outperform Buffett’s with 149% Gains

In 2024, Congress saw significant gains in their stock trades, outperforming Warren Buffett’s impressive investment record. While Buffett’s Berkshire Hathaway yielded a remarkable 5,502,284% return over six decades with an annual gain of 19.9%, congressional trades in companies like Nvidia, Coinbase, and NGL Energy Partners have raised concerns about insider trading practices.

Efforts to compare Congress’s trading success with that of investment legends like Warren Buffett have shed light on the activities of lawmakers on Capitol Hill. The 118th Congress data reveals that 46% of members own stocks, with 189 Representatives and 54 Senators actively engaged in trading. Particularly, the focus has been on technology stocks such as Nvidia and Coinbase, where Congress members have seen substantial returns that surpass those of seasoned professional investors.

One notable strategy employed by Congress is the execution of rapid “phone trades” conducted through brokers just before significant policy announcements. The data indicates that members of Congress currently hold substantial cryptocurrency assets, with Representative Shri Thanedar having between $365,003 and $800,000 in crypto investments.

The disclosures regarding congressional investments reveal striking figures, with representatives like Nicholas Begich holding between $250,001 and $500,000 in crypto assets, and Michael Collins holding $58,016 to $345,000. These holdings often align with committee assignments related to financial services and technology regulation.

The STOCK Act, which aims to enhance transparency and public trust in Congress, requires members to disclose their stock trades promptly and prohibits insider trading by clarifying that securities laws apply to lawmakers. Despite these regulatory efforts, concerns persist regarding potential violations of insider trading rules among government officials.

Congressional trades in companies like Nvidia, Coinbase, and NGL Energy Partners have yielded significant profits, with some members maintaining substantial digital asset portfolios. The data illustrates a wide disparity in the performance of congressional portfolios, raising questions about the fairness of existing rules.

Calls for comprehensive reform have escalated in light of Congress’s investment success compared to traditional market maven Warren Buffett. The weighted percent change in congressional portfolios in 2024 suggests that traders may be profiting at levels that exceed expectations, prompting a reexamination of current regulatory frameworks.

In conclusion, the significant gains made by Congress through stock trades have underscored the need for greater oversight and accountability in the legislative branch. As lawmakers continue to navigate the intricacies of the financial markets, the conversation around insider trading and regulatory reform remains a critical aspect of ensuring ethical and transparent conduct within the political sphere.