In recent months, stock trading activities by U.S. Congress members have come under scrutiny, with notable figures like former House Speaker Nancy Pelosi standing out for their substantial profits.
Although marred by controversy, including concerns about insider trading, most of the stocks traded by Congress members have turned out to be major successes.
In this line, back in March, Finbold reported that a majority of Congress members favored tech giants for their portfolios, with Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Palo Alto Networks (NASDAQ: PANW) topping the list.
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Given allegations of insider trading, it makes sense for investors to consider mimicking the trading activities of elected officials.
Investors who invested in these companies at the start of 2024 would have profited, as they are all in the green year-to-date. A $1,000 investment would have yielded varying returns.
Investing $1,000 in each Congress preferred stock
Notably, Apple, trading at $214.29 at press time, has seen a significant increase of 15.43% year-to-date. An investment of $1,000 in Apple at the beginning of the year would now be worth $1,154.30.
Despite Apple’s positive performance in 2024, the stock began the year on a rough note, with some Congress members offloading their shares.
For instance, in January, Representative Tommy Tuberville sold approximately $500,000 worth of Apple stock. Conversely, Representative Pete Sessions bought $360 worth of the stock on February 29.
Microsoft has performed even better, with a 20.53% YTD gain. A $1,000 investment in Microsoft at the start of 2024 would have grown to $1,205.30. By the close of markets on June 19, MSFT was valued at $446.34.
Notable figures from Congress who invested in Microsoft include Sessions, who acquired up to $15,000 worth of the stock on February 7.
While not as spectacular, cybersecurity giant Palo Alto Networks still posted a respectable 9.73% increase YTD. An investment of $1,000 in Palo Alto Networks would now be valued at $1,097.30.
Interestingly, Pelosi remains a prominent figure on Capitol Hill, generating significant chatter about her stock positions. In February, she acquired up to $1 million worth of PANW call options, escalating the debate on ethical standards for elected officials involved in stocks. This emerged in the backdrop of her successful Nvidia (NASDAQ: NVDA) bet.
Splitting $1,000 among Congress’ preferred stocks
On the other hand, If one had divided $1,000 equally among the three stocks, each would have received approximately $333.33. As a result, the total investment portfolio would now be worth $1,152.24, reflecting a solid 15.22% overall increase in value.
Overall, it appears following the stock trading patterns of Congress members would have yielded a solid return, outpacing many traditional investments.
