Nancy Pelosi: "The Wolf Of Wall Street"
Breakfast With Yim - The most important meal… and news of the day!
Anyone interested in discussing their investments or business ideas? Click the “Email Me” button below to start a conversation! -Thanks, Jimmy “Yim” Cuthbert
In Today’s Newsletter:
Nancy Pelosi: The Wolf of Wall Street
Tweet: Power of the Internet
TikTok: Finding Financial Freedom
4-Hour Workweek: Chapter 15 – Filling the Void: Adding Life After Subtracting Work
Quote of the day:
People say that what we are seeking is a meaning for life. I don’t think this is what we’re really seeking. I think what we’re seeking is an experience of being alive. — Joseph Campbell
The Pelosi Portfolio
There is a new strategy when it comes to stock trading: copying Nancy Pelosi’s stock portfolio.
You can easily track her trades due to the Stock Act, which requires lawmakers to disclose stock trades and those of their spouses within 45 days. If you were to use this information to follow the trades made by Pelosi’s husband, you would see how well they have performed.
Looking at just her one-year returns for June 2020 to June 2021 her stocks gained 45.59%, and her options gained 66.7%! This is pretty outstanding considering her average returns for stocks and options were 56.15% compared to the S& 500, which was up 36% in the same 12-month period. If we look at her portfolio from 2019 to 2021 in total, it has grown 96% and gained $62 million in value!
Why does this matter?
Congress members’ are always under watch when it comes to investments, but no one compares to Nancy Pelosi and her husband. Not only the size of their investments, but the perfectly timed execution of these investments raise many eyebrows about insider trading. Nancy has been involved with politics for over 30 years. She is currently the Speaker of the House, which is the highest-ranking legislative official in the United States. She represents California’s 12 congressional district, which compromises Silicon Valley. She has been heavily involved in multiple bills and laws that have benefited Big Tech. So it seems awfully coincidental that over 50% of the stocks she profited from are technology-based companies.
Let’s look at some past examples of some of Pelosi’s “Lucky” trades:
March 2008, Pelosi bought Visa IPO shares just as Congress was passing new legislation affecting credit card holders. Visa stock went up $20 a share within a couple of days of the new law being passed. This incident alone caused enough uproar that the Stock Act was revised to prohibit congress members from investing in IPOs, called the “Pelosi Provision”
October 2014, Pelosi invested in SunEdison just weeks before it was acquired by First Wind sending their stock price soaring.
February 2020, Pelosi invested $5.52 million in Amazon and Facebook right before the Covid-19 pandemic.
March 2020, Pelosi bought Tesla and Disney stock right before President Trump announced the stimulus bill for companies and individuals.
January 2021, Pelosi bought Tesla stock 1 month before President Biden announced an executive order requiring all federal vehicles must be electric.
March 2021, Pelosi exercised $2 Million worth of Microsoft options, two weeks before Microsoft won a $22 Billion contract to deliver high-tech headsets to the US Army.
May 2021, Pelosi exercised call options worth $5.3 Million to buy shares of Amazon, Apple, and Google just before House Judiciary passed a series of weaker tech antitrust bills.
June 2021, Pelosi bought up to $11 Million worth of mega-cap tech stocks right after Tim Cook personally called Pelosi to slow down 6 Big Tech anti-trust bills.
July 2021, Pelosi bought Netflix shares 1 month before Netflix announced it was entering the videogame space, causing the stock to rally significantly.
June 2022, Pelosi purchased $5 Million worth of Nvidia shares just one month before the Senate is expected to pass a new bill that includes a $52 billion subsidy for domestic chipmakers.
The Pelosi Portfolio has proven itself as a highly successful investment machine. They have timed their trades almost too perfectly around information only someone like Nancy would know. This has led to the debate on if Congress members should be allowed to trade individual stocks due to their law-making decisions having drastic impacts on many of these businesses. Unsurprisingly Nancy has come out strongly against the banning of politicians from owning stocks. The Pelosi’s are not the only family in politics that make money in the market, they are just the best by far. As you can see in the chart below, politicians just so happen to be amazing investors:
Politicians are elected to represent the people’s interests, not their own. I think politicians should be banned from trading stocks as they are clearly using advantages the rest of us do not have. Until they are banned though, I will definitely be keeping my eye on the Pelosi Portfolio for the next big trade!
Leave me a comment if you want to know what stocks Pelosi owns so far in 2022!
Tweet Of The Day: Power of the Internet
TikTok Of The Day: Finding Financial Freedom
Enable 3rd party cookies or use another browser
Book Review: 4-Hour Workweek
Forget the age-old concept of retirement - working your whole life, taking a few vacations, and saving as much money for retirement. There is no need to wait anymore, especially in unpredictable economic times. In this book, Tim Ferriss breaks down the blueprint to escape the rat race we all call work. He explains how to create a business to fund the lifestyle you have always dreamed of and how to live your life like a millionaire… without actually becoming one.
Here is a link to a free online PDF of the book in case you want to follow along:
4-Hour Workweek
Chapter 15 – Filling the Void: Adding Life After Subtracting Work
Subtracting the bad does not create the good. It leaves a vacuum. Decreasing income-driven work isn’t the end goal. Living more—and becoming more—is.
Common doubts and self-flagellation of the NR:
Am I really doing this to be more free and lead a better life, or am I just lazy?
Did I quit the rat race because it’s bad, or just because I couldn’t hack it?
Is this as good as it gets?
Am I really successful or just kidding myself?
Have I lowered my standards to make myself a winner? Are my friends, who are now making twice as much as three years ago, really on the right track?
Why am I not happy? I can do anything and I’m still not happy. Do I even deserve it?
These are outdated comparisons using the more-is-better and money-as-success mindsets that got us into trouble, to begin with.
Before spending time on a stress-inducing question, big or otherwise, ensure that the answer is “yes” to the following two questions:
Have I decided on a single meaning for each term in this question?
Can an answer to this question be acted upon to improve things?
If you can’t define it or act upon it, forget it.
The two fundamental components to enjoy life:
Continual Learning. Transport skills that you practice domestically to other countries, like sports. Instant social life and camaraderie. Or pick skills that you can practice there, like learning a language
Service. Doing something that improves life besides your own.