https://investinganswers.com/a...tocks-owned-congress

Lately, I've seen the recommendation of investing like congress members. So, I've done a bit of research. Congress consists of 433 members. Over half are millionaires. Fifty are worth $10,000,000, or more. A quote from the article of a most recent transaction (article posted July 2021):

"More recently, Nancy Pelosi is facing scrutiny for her husband's timely trading of tech stocks. Paul Pelosi exercised a call option on 4,000 shares of Alphabet stock (Google's parent company), with a strike price of $1,200 per share. Shares of Alphabet were trading at $2,500 on June 18, 2021, when Paul exercised these options, netting the Pelosis' over $5 million. This came just a week before the House of Representatives put forth an antitrust bill aimed at further regulated "big tech."

My non lawyer understanding of law is that members of Congress are immune to insider trading regulations. Couple that with an ability to literally craft legislation that favors one company over others and you have a surefire recipe for riches.

Millionaire = Net worth > $1 mil?
What's their average age?

I get your point. Over $10 mil doesn't sit quite right with me either but $1 mil net worth by age 40-45 should be easily attainable with a decent job and good financial discipline.

I think the title is a bit misleading.
Perhaps distinguish being a millionaire vs getting there illegally or unethically.
Nothing wrong with making money as long as you get there the right way.

quote:

Originally posted by smschulz:
I think the title is a bit misleading.
Perhaps distinguish being a millionaire vs getting there illegally or unethically.
Nothing wrong with making money as long as you get there the right way.

Just like Biden and Sanders did it?

Politics should not be a job that makes you rich or that lasts a lifetime.

quote:

Originally posted by Skins2881:
Politics should not be a job that makes you rich or that lasts a lifetime.

Define 'rich.'

Let them get rich they will go through life never being satisfied or happy anyhow. Miserable way to live. I want to see them forced to take the vaccine or lose their jobs. After all they are our employees right?

quote:

Originally posted by Keystoner:

quote:

Originally posted by Skins2881:
Politics should not be a job that makes you rich or that lasts a lifetime.

Define 'rich.'

Earning $175k per year with Cadillac health plan,and sweet pension. Is richer than 90% of the population.

quote:

Originally posted by Keystoner:
Millionaire = Net worth > $1 mil?
What's their average age?

I get your point. Over $10 mil doesn't sit quite right with me either but $1 mil net worth by age 40-45 should be easily attainable with a decent job and good financial discipline.

I agree with you. However, congress seemingly is able to still make considerable gains using privileged stock information. This is despite the Stop Trading on Congressional Knowledge Act. I've been curiously watching the AMC Entertainment stock, in which Nancy Pelosi's husband, Paul Pelosi, is reported to have bought a large amount of shares.

The hedge fund Citadel recently took the Securities and Exchange Commission to the Court of Appeals for the D.C. Circuit. The SEC planned to ban payment for order flow (PFOF), which is banned in other countries due to the unfair advantage it offers hedge funds. AMC Entertainment is allegedly one of the stocks that Citadel is using PFOF against. During, or shortly after the court hearing, Senator Pat Toomey introduced a bill to protect PFOF. Citadel is reported to be heavily involved in political donations.

https://www.opensecrets.org/or...ummary?id=D000021912

Net worth before being elected to congress.
When they amassed $1 million in wealth.
When they amassed $2 million in wealth.
Etc.

That would tell the story of their wealth and when (how) they made it.

quote:

Originally posted by Skins2881:
Earning $175k per year with Cadillac health plan,and sweet pension. Is richer than 90% of the population.

Oh believe me, when they vote in a raise for themselves, it disgusts me.

quote:

Earning ...

I think many of us would be skeptical of that particular verb.

As brailledive said, what’s important is how they amassed their wealth.

Saving, investing, working for your wealth is acceptable.
Insider trading and other illegal get rich quick schemes are not acceptable.

Were not most of our Founding Fathers wealthy?
They put their fortune and livelihoods on the line to create this great nation.
Having wealth is not a crime.
How your wealth was amassed is the critical question.

Are you ethical and honorable?
This is where politicians of today fail.

quote:

Originally posted by kimber1911:
As brailledive said, what’s important is how they amassed their wealth.

Saving, investing, working for your wealth is acceptable.
Insider trading and other illegal get rich quick schemes are not acceptable.

Were not most of our Founding Fathers wealthy?
They put their fortune and livelihoods on the line to create this great nation.
Having wealth is not a crime.
How your wealth was amassed is the critical question.

Are you ethical and honorable?
This is where politicians of today fail.

Remember that occasion when nasty P said that she knew that it was illegal, but the "house" just did it anyway?

quote:

Originally posted by Keystoner:

quote:

Originally posted by Skins2881:
Politics should not be a job that makes you rich or that lasts a lifetime.

Define 'rich.'

This would never fly, but politics is supposed to be public service. Teachers, police, and firefighters are also public service jobs. I’d be good with politicians making no more than the average of the other three and being required to put all investments in a blind trust up assuming office with any conviction of insider trading resulting in execution.

There is a website that keeps track of all the trading that congress does and a lot of people have been killing it by mimicking some of their trades.

I'm more concerned about the percentage their net worth has increased since they have been a member of congress, not what it was before.

quote:

Originally posted by 220-9er:
I'm more concerned about the percentage their net worth has increased since they have been a member of congress, not what it was before.

You know their salaries.

quote:

My non lawyer understanding of law is that members of Congress are immune to insider trading regulations. Couple that with an ability to literally craft legislation that favors one company over others and you have a surefire recipe for riches.

^^^^^^^^^^^^
Untrue. Ask your broker or financial advisor. Here:

Members of Congress come across a lot of information in the course of their official duties. Can they use “insider information” to make a quick buck by buying and selling stock at opportune times?

The answer to this question is a resounding and unequivocal no. Statutory law forbids it, and even if it did, Congress has always had the constitutional power to discipline its Members.

In mid-November 2011, CBS’ 60 Minutes ran a story alleging that Members of Congress were using insider information to benefit on stock trades. The story provoked a furor among the public, leading to the enactment of the STOCK Act, which President Obama signed into law on April 4, 2012. The act had several effects, but the most notable was that it explicitly stated that Members and congressional employees “are not exempt from the insider trading prohibitions arising under the securities laws…” (§4(a)). Additionally, it amended the Securities Exchange Act of 1934, to specify each Member or employee “owes a duty” when in receipt of “material, nonpublic information” obtained as a result of their public office (§4(b)(2)).

Although the STOCK Act amended the Securities Exchange Act of 1934, in the lead up to its enactment, there was some debate over whether Members and staffers were exempt from anti-insider trading law. For instance, in February 2012, when the House passed the STOCK Act, Representative Rob Woodall of Georgia said, “The STOCK Act has been characterized … as to prevent insider trading by members of Congress, as if members of Congress are allowed to participate in insider trading today, and they are not.” Similarly, when the Senate passed the STOCK Act, The Wall Street Journal reported:

LINK: https://www.congressionalinsti...-in-insider-trading/

quote:

Originally posted by Keystoner:

quote:

Originally posted by 220-9er:
I'm more concerned about the percentage their net worth has increased since they have been a member of congress, not what it was before.

You know their salaries.

I think his point is that some of them were rich before getting into office. There are plenty that have gotten very rich while in Congress which is more concerning.