© Alex Wong / Getty Images
The S&P 500 has delivered roughly 13% annualized returns over the past decade — one of the strongest bull runs in history. Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B), the gold standard for patient capital, managed about 12% annually in the same stretch. Impressive numbers for mere mortals. Yet both look like amateur hour next to the woman who just stepped away from Congress: Nancy Pelosi.
While the Oracle of Omaha was buying slices of Apple (NASDAQ:AAPL), the former House Speaker was feasting on the whole tech orchard — and timing it with uncanny precision.
Congress: The World’s Biggest Hedge Fund
From 2019 through 2024, Pelosi’s disclosed trades (executed by her husband and venture capitalist Paul Pelosi) crushed the market by more than 3-to-1. A widely cited analysis by Unusual Whales showed her portfolio gained roughly 65% in 2023 alone when the S&P 500 rose 24%. In 2024 the gap widened again to +71% versus the market’s +25% return.
According to The New York Post, Pelosi’s record during her 37-year tenure in Congress served up cumulative returns of 16,930% compared to just 2,300% by the index. That’s not just beating the market; that’s thrashing it.
When Pelosi entered the House in 1987, her net worth was an estimated $2 million to $3 million; today it stands between $250 million and $280 million, a more than 9,000% gain over nearly four decades. With a little more than a year to go before she officially steps down, there is plenty of time to pad her lead.
But how does a congresswoman earning $174,000 a year ($223,000 when she was Speaker) amass such wealth from the stock market? Here is what she did.
From FAANG Darling to AI Queen
Paul Pelosi didn’t invent momentum investing, but he perfected the “buy just before Congress regulates or funds it” variation. Early heavy bets on Apple, Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), and Netflix (NASDAQ:NFLX) were already legendary. Then came the pivot that turned heads: massive call option purchases in Nvidia (NASDAQ:NVDA) in 2022 and 2023 — right as the AI boom ignited.
It also occurred just as Congress was debating hundreds of billions in chip subsidies via the CHIPS Act. Coincidence? Timing on Tesla (NASDAQ:TSLA) calls before EV tax-credit expansions and Microsoft (NASDAQ:MSFT) before giant Azure contracts with the government followed the same pattern.
The Million-Dollar Question Washington Wants to Ignore
The official line is Pelosi’s husband is simply a savvy venture guy with a great feel for tech cycles. The skeptical take says when your spouse helps write the rules for semiconductors, cloud computing, and electric vehicles, you get a peek at tomorrow’s newspaper today.
The STOCK Act of 2012 was supposed to stop blatant insider trading by Congress, yet members and their spouses still enjoy 45-day disclosure windows and zero blind-trust requirements. Many representatives also vehemently oppose any legislation prohibiting them from trading stocks while they’re in Congress.
Replicating Pelosi’s Success
Outside of entering politics, here are four practical strategies average investors can use to beat the market and perhaps Buffett himself:
- Embrace Emerging Technologies as Core Holdings. Pelosi’s success stems from heavy bets on transformative tech themes, shifting from FAANG stocks in the 2010s to AI infrastructure in 2021. Use ETFs or index funds rather than chasing individual stocks to leverage broad momentum without having to pick individual winners.
- Concentrate on What You Know Best. Her portfolio often holds just a few names, with Nvidia comprising 20% to 22% at times, amplifying gains during booms. Don’t over-diversify into mediocrity; focus most of your assets on just a handful of sectors or themes you’re informed about while limiting any single holding at 10% to 15% to avoid wipeouts.
- Hold for the Long-Term: Pelosi’s trades show patience, exercising options and retaining shares during sector surges, like Nvidia’s AI-driven rally from 2023 to 2025. Adopting Buffett’s motto of “the best time to sell is never” lets the magic of compounding work for you.
- Seek Asymmetrical Opportunities with Controlled Leverage: Her strategy uses call options for outsized returns on small upfront costs, timed before catalysts like stock splits or partnerships. While options are risky, the takeaway is to pursue “asymmetric” bets — investments with high upside and limited downside risk.
Key Takeaway
We don’t have the luxury of sitting in on classified briefings, but we can read about what Congress is thinking of spending tens of billions of dollars on and buying the pure-play leaders months before the appropriations bills hit the floor. The government has recently been taking direct equity stakes in companies involved in semiconductor production, rare earth mining, battery-grade lithium production, and critical mineral extraction.
Following legislative trends can be just as financially rewarding as diving into a company’s latest SEC filings, while also keeping track of where politicians are putting their own money. It doesn’t level the playing field, but it helps tilt the odds a little more in your favor.