Members Of Congress Who Have Made A Fortune From Stock Trading

If you're looking for the best-performing stocks on the market, a safe bet is to find a great financial adviser and go from there; others might point you in the direction of the U.S. Congress. It seems that a number of members of Congress have scored significant gains in the stock market. In 2023, certain members excelled in the market in ways so unlikely that retail investors began watching their trades. This can be done because congressional members must disclose their trades every year, which the public can view through the Office of the Secretary of the Senate and the Office of the Clerk of the House of Representatives.

As per Unusual Whales, which "uncovers unusual options, stocks, and crypto purchases," 33 out of 100 congressional members in 2023 beat the stock market, making gains on some 11,000 trades. To go back further, a New York Times investigation found that between 2019 and 2021, 97 members of Congress and their immediate family traded stocks of companies directly influenced by committees they sat on.

In this article, we'll take a look at five members of Congress who have made significant gains from stock trading. All are members of the House of Representatives. Two are from the Republican Party and three are from the Democratic Party.

Republican Rep. Mark Green of Tennessee's 7th Congressional District in 2023 made a 122.20% return on his investments, bolstered by the performance of two companies in the energy sector: NGL Energy Partners LP and Energy Transfer LP, according to Capitol Trades. The former surged over 380% in 2023 after a few years of weaker performance following a strong 2019. Green's success with equities caught the attention of the media, leading his office to release a statement on January 2, 2024.

"I have no insight into how trades are made, and am only notified after they occur," Green said. Adding, "I believe firmly that using insider information for personal benefit is a crime that should be strictly enforced." Green also mentioned his reluctance to interfere in investing decisions made by his broker, even claiming to have advised his broker to ignore any of his investment suggestions.

As proof, the public statement provides a link to the letter Green claims he wrote to his broker on June 18, 2020, imploring them to "disregard any input" he gives them in order to preserve the public trust. A month after releasing his statement, Green announced his retirement from Congress at the end of his term and is rumored to be running for governor in 2026.

According to Capitol Trades, Rep. Ro Khanna, the Democratic representative of California's 17th Congressional District, makes a lot of trades — 16,061, as of this writing, including 3,267 trades in the last year (up to July 31, 2024) with a total volume of $293.12 million.

As a sitting member of the House Armed Services and Oversight and Accountability committees, Khanna's was included in The New York Times' reporting for what could be perceived as behavior constituting a conflict of interest. Khanna's wife and children (through a trust) made at least 10,500 trades on companies that Khanna's committees were reviewing at the time. The Times investigation found 149 potential conflicts around Khanna's trading based on his proximity to information and potential influence over companies falling within the oversight of several committees he sits on.

Ironically, according to SFGATE, Khanna has distanced himself from day trading, insisting that it's not something he personally engages in. He has also declared his support for a total ban on members of Congress trading stocks, which hasn't panned out. While the STOCK Act — signed into law in 2012 by former President Barack Obama — limits congressional members from trading stocks that conflict with their roles, a 45-day window to report trading activity allows members, as well as their immediate family, to trade as much as they want.

Per Capitol Trades and as of this writing, Rep. Michael McCaul, the Republican representative for Texas' 10th District, has made 5,777 trades with a volume of $605.34 million. A sitting member of the House Foreign Affairs and Homeland Security committees, McCaul sold $42.1 million worth of stock in 2023 in the areas of tech, communications, finance, health care, and consumer cyclical. A look at McCaul's trading activity on Unusual Whales (reported in July 2024), shows that his spouse bought $50,001 to $100,000 worth of META shares on June 28, and that his child bought another $15,001 to $50,000 of META on the same day. These META trades go back to February 2020.

Note that Michael McCaul is also one of the wealthiest members of Congress, due in large part to Linda Mays McCaul's fortune; she is the daughter of Clear Channel Communications (iHeartMedia) founder Mark Mays. His net worth is estimated to be at least $200 million.

From January 2005 to February 2, 2024, Brian Higgins served as the Democratic representative of New York's 26th Congressional District. On February 2, he resigned from Congress, making good on an announcement he made in November 2023.

During his time as a member of Congress, however, he did trade on the stock market, and in 2023, Higgins averaged a 238.90% return on a 2020 investment he made in the best-performing stock of 2023: Nvidia. Unusual Whales reveals Higgins made the purchases on September 4, 2020. Two of the trades are attributed to him, with the third described as "not disclosed." With this said, his trading fortunes in 2023 led some to question his (Nvidia) position, while a post on the social platform X ultimately forced Higgins to address the matter through a spokesperson (per 7 News Buffalo).

Although Higgins made just short of $100,000 on his stock play to date, it's still an incredibly impressive feat for the former congressman and an example of how long-term investing can pay off. (Check out our best tips for investing in stocks as a beginner.)

Like former Rep. Brian Higgins, Rep. Nancy Pelosi, the longtime Democratic representative of California's 11th Congressional District and former speaker of the House, also did very well betting on Nvidia stock. On January 10, 2024, Unusual Whales posted on X, "Pelosi's option calls have made her $250,000 already, more than her entire annual salary of ~$223,500." The "call options" referred to by Unusual Whales are those made by Pelosi and her husband Paul on November 22, 2023. Over the years, Pelosi has purchased call options of other well-performing stocks as well, including SalesForce, Google, and Disney.

According to Capitol Trades, as of this writing, Nancy Pelosi has made 58 trades since December 2021, with a volume of $50.88 million. These numbers are why retail traders follow Pelosi's moves. This said, however, while Pelosi has done well on the stock market, she's also made some perhaps regrettable decisions, including selling 25,000 shares of Nvidia in 2022. As reported by Benzinga, Pelosi disclosed that the sale resulted in a loss for her of $341,365.