Top Favorite Stock Holdings of Congress

Posted by OldFart on November 16, 2011 (11:27AM)

by thr Big Picture blog and I agree - insider traders everywhere - hedge funds, Congress or Supreme Court should be in jail - http://www.ritholtz.com/blog/2011/11/top-favorite-stock-holdings-of-congress/


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Why isn’t congressional members required to put their holdings into a blind trust?

Why can’t we ban insider trading by Congress members be banned?

How cant these elected officials do “the people’s business” when they are too busy running around trading on the votes they are about to cast?

How one earth can we ever get fair outcomes of issues involving finance, healthcare, or energy when the members so personally have a monetary stake in an outcome they may or may not be in the public interest?

Why aren’t these people in jail?

~~~

1. General Electric (GE)

Members invested: 75
Total value of holdings (max.): $11.41 million
Total value of holdings (min.): $3.58 million

Top Congressional Investors
Darrell Issa (R.-Calif.) – $1 million to $5 million
John Kerry (D.-Mass.) – $616,004 to $1.315 million
Michael McCaul (R.-Texas) – $400,003 to $850,000

2. Procter & Gamble (PG)

Members invested: 62
Total value of holdings (max.): $39.42 million
Total value of holdings (min.): $8.72 million

Top Congressional Investors
Rodney Frelinghuysen (R.-N.J.) – $7.07 million to $35.15 million
Michael McCaul (R.-Texas) – $200,002 to $500,000
James B. Renacci (R.-Ohio) – $180,485 to$222,482

3. Bank of America (BAC)

Members invested: 57
Total value of holdings (max.): $5.41 million
Total value of holdings (min.): $2.83 million

Top Congressional Investors
Rodney Frelinghuysen (R.-N.J.) – $1.02 million to $1.08 million
John M. Spratt Jr. (D.-S.C.) – $500,001 to $1 million
Dianne Feinstein (D.-Calif.) – $500,001 to $1 million

4. Microsoft (MSFT)

Members invested: 56
Total value of holdings (max.): $6.43 million
Total value of holdings (min.): $3.22 million

Top Congressional Investors
John Kerry (D.-Mass.) – $1.77 million to $2.55 million
Michael McCaul (R.-Texas) – $515,003 to $1.05 million
Jane Harman (D.-Calif.) – $130,003 to $350,000

5. Cisco Systems (CSCO)

Members invested: 56
Total value of holdings (max.): $3.24 million
Total value of holdings (min.): $1.27 million

Top Congressional Investors
John Kerry (D.-Mass.) – $602,005 to $1.28 million
Richard L Hanna (R.-N.Y.) – $100,000 to $250,000
Jane Harman (D.–Calif.) – $100,000 to $200,000

6. Pfizer (PFE)

Members invested: 51
Total value of holdings (max.): $4.61 million
Total value of holdings (min.): $2.04 million

Top Congressional Investors
John Kerry (D.-Mass.) – $752,004 to $1.53 million
F. James Sensenbrenner Jr. (R.-Wis.) – $507,005 to $1 million
Kurt Schrader (D.-Ore.) – $265,002 to $550,000

7. Intel (INTC)

Members invested: 47
Total value of holdings (max.): $3.21 million
Total value of holdings (min.): $1.28 million

Top Congressional Investors
John Kerry (D.-Mass.) – $602,005 to $1.28 million
Michael McCaul (R.-Texas) – $200,002 to $500,000
Jane Harman (D.-Calif.) – $130,003 to $350,000

8. Wells Fargo (WFC)

Members invested: 45
Total value of holdings (max.): $4.28 million
Total value of holdings (min.): $1.71 million

Top Congressional Investors
John Kerry (D.-Mass.) – $351,003 to $765,000
Sander Levin (D.-Mich.) – $250,001 to $500,000
David Vitter (R.-La.) – $126,007 to $365,000

9. AT&T (ATT)

Members invested: 44
Total value of holdings (max.): $4.08 million
Total value of holdings (min.): $2.23 million

Top Congressional Investors
John Kerry (D.-Mass.) – $1.52 million to $2.07 million
F. James Sensenbrenner Jr. (R.-Wis.) – $105,877 to $255,876
Richard L Hanna (R.-N.Y.) – $100,001 to $250,000

10. Exxon Mobil (XOM)

Members invested: 42
Total value of holdings (max.): $11.09 million
Total value of holdings (min.): $2.74 million

Top Congressional Investors
John Carter (R.-Texas) – $1 million to $5 million
F. James Sensenbrenner Jr. (R.-Wis.) – $551,185 to $1.05 million
Michael McCaul (R.-Texas) – $500,002 to $1 million

Sources: Open SecretsCNBC,

Posted by OldFart on November 16, 2011 (02:58PM)

Forgot to add -  if you're as pissed-off as I am over Congress' trading on inside information, call your Representatives and Senators and demand that they pass the Stop Trading on Congressional Knowledge (STOCK) Act

Posted by Buster01 on November 16, 2011 (04:00PM)


Wow, that's pretty interesting. I'm surprised there is not already a law in place that they must at the very least disclose their holdings and trades for the public to analyze.

Posted by The Otter Way on November 16, 2011 (04:03PM)

OldFart, thanks for reminding me to write my elected officials.  I did...and now I feel much better!

Saw 60 minutes the last two weeks and was just dumb founded that this cr@###p happens...

Good night don't let the door hit ya'll on the way out...

VIX is over 30.... looking at 3% Swings...

Posted by TampaJake on November 16, 2011 (05:55PM)

Would somebody please tell me why they love or even own BAC?
The 3rd most held stock by congress and the 2nd most held stock by TK members. I just don't get it. It surely isn't the $.01 per quarter dividend and from the reports I see on TV it can't be the management. So what is it?

Posted by OldFart on November 16, 2011 (07:29PM)

TJ - earnings. Bruce Berkowitz, Fairholme Fund is also a big shareholder. He has suffered $ but he is sticking to his position. Bruce is Morningstar's value manager of the decade 2000 - 2010. Not that he is error-less but isn't this what value investing is - sometimes it hurts a lot. The other way around is Bernie M, he delivered consistent results

I have been selling puts in BAC based on his position. Seeing that the Congress holds a lot of shares just confirms it, might consider selling a few more puts

Posted by DougTheHed on November 16, 2011 (07:39PM)

TJ, i have been slowly buying BAC under $7, in fact just bought some more today @ $6.

the reason i am buying it is solely for making money. I hate B of A the bank...think they are crooks and scumbags. Closed my account there about 3 years ago.

it is definitely one of my spec plays. Call it the contrarian in me.

Financials are getting killed now and have been for some time. Buy when there is blood in the streets.

A few reasons:

1. BAC is too big to fail, at least as far as the US Gov is concerned...therefore they are not going bankrupt.

2. If Warren Buffett thinks the company will be around then thats a good sign. (i do realize he bought in on preferred shares not common, but its the thought)

3. I like to bottom feed on stocks. The downside risk to BAC is not nearly as large as the upside.

 Worst case scenario is that the stock goes to zero, right? for a loss of $6 a share...not that catastrophic.

But it definitly is a spec play because of the non-transparency of the EU exposure and mortgage loans. As long as it doesnt dominate your portfolio, I think the upside is there for big gains while the risk of significant loss is reduced due to government support and low share price. 

Posted by spshapiro on November 16, 2011 (08:02PM)

Because hope springs eternal. Because we are doomed to think that the once mighty will get up off the floor.  But I learned my lesson with WaMu, and I can wait until the giant shows some form of life before getting excited.  TJ, people see it was worth 6, 8 times as much not so long ago, and they get stars in the eyes.    

Posted by DougTheHed on November 17, 2011 (01:00AM)

agreed sp, but i would also argue that B of A is much more of a banking giant than WaMu was.

it is possible that they go under i suppose, but as long as its treated as a spec play, it makes sense. I do agree that we all are trying to catch a falling knife.

If you are just looking for a quick pop we could get one of those soon also. BAC is very oversold, near its all time lows, and its 30 and 50 DMA are close to a golden cross. I think this will go to roughly $7 within the next month.

and when it gets back to 7 i will take a healthy profit and still let the other half of my holdings run.

Posted by spshapiro on November 17, 2011 (08:36AM)

At one time (1989) when NAV was a member of the Dow, I had invested in it.  I saw that it had the premier franchise for commercial trucks except for the heaviest 18 wheelers.  Although the stock had fallen (I believe from the mid thirties) to 3.88, I waited and waited and waited.  In late 1994 it began to rise once again and I bought some more in 1995, and finally sold my position in 1997, for 11.85.  Yes, you could say that I tripled my money in 8 years, but that was not unusual in those years, in fact many would have called it a poor one.  The point here is, many didn’t/couldn’t/wouldn’t wait 8 years for the ship to right itself, and I doubt that this has changed.  The Buffets of the world will probably make some money in BAC, but many who are invested fancy themselves ‘fast money’, and many of them will find themselves fleeced.    

Posted by OldFart on November 17, 2011 (10:26AM)

Here is a link if you need to find out how to contact your Senate and House reps - http://www.contactingthecongress.org/

Posted by TampaJake on November 17, 2011 (10:29AM)


spshapiro said: Because hope springs eternal. Because we are doomed to think that the once mighty will get up off the floor.  But I learned my lesson with WaMu, and I can wait until the giant shows some form of life before getting excited.  TJ, people see it was worth 6, 8 times as much not so long ago, and they get stars in the eyes.    

 I had a similar experience with GM.
Too big to fail? I am not so sure even with BAC.

Doug... regardless of the price, $6 to $0 is a 100% loss. If the stock was $60 per share and you owned 1/10th of the number of shares your loss would be the same. Your risk is always # of shares X share price.

Posted by OldFart on November 17, 2011 (10:37AM)

Buster01 said:
Wow, that's pretty interesting. I'm surprised there is not already a law in place that they must at the very least disclose their holdings and trades for the public to analyze.

 Buster, there is a law but it is pretty ridiculous. I believe they have to disclose their holdings once per year. The point is how are you going to conduct people's business when you are not independent of the things that you are going to regulate

Posted by incubus on November 17, 2011 (11:42AM)

I got extremely busy with work over the last few weeks,wasn't able to log in and comment, but I'm sure it's known how important this topic is to me.

One of the most shocking revelations from the 60 minutes report was about Boehner -

"The "60 Minutes" and Newsweek stories also cited Schweizer's finding that Boehner was trading in healthcare stocks shortly before significant changes were made in the healthcare bill then moving through the House. " -

While 44,000 Americans die every year for lack of ability to pay for healthcare, countless jobs are lost outsourcing to countries with socialized healthcare, Boehner's infamous "HELL NO" rant may have only been to boost his own stock positions.

"Free market" - bullshit, we now have enforced demand with government restricting supply to increase their own personal wealth as well as the wealth of their friends and campaign contributors..

Posted by OldFart on November 17, 2011 (11:47AM)

incy, welcome back. IRS, King George and BP are more popular than the Congress

Posted by incubus on November 17, 2011 (11:51AM)

I caught that one on BR OF, it's hilarious.

As a population, that inherently means we'd prefer to turn the country back over to the tyranny of King George or Joseph Stalin than re-elect the current Congress.

Even hardcore right winger Steve Moore has predicted a major swing in the 2012 elections.

Posted by The Eagle on November 17, 2011 (12:00PM)

Great post, OF.

This whole concept of Congress being able to do inside trades without getting into trouble seems utterly ridiculous, but I guess it is what it is for right now. Still baffles me as to why Bank of America is number 3 on the list though. This should definitely be stopped.

Posted by OldFart on December 06, 2011 (11:30AM)

Wanted to bump this old thread - looks like the outrage of Congress trading on insider info is getting a lot of attention and the STOCK act has a chance. If you have not done so, please let know your elected representatives  of your thoughts

http://finance.yahoo.com/blogs/daily-ticker/power-people-outrage-over-insider-trading-puts-stock-124431845.html

Posted by Carpenter on December 07, 2011 (10:50AM)

OldFart said: incy, welcome back. IRS, King George and BP are more popular than the Congress

 Thats a nice chart OF, Hopefully it would transfer to votes to get the frikers out.
Although I have my doubts as it must be human nature to blame the other guy.

I don't remember where but I saw a poll where 80% of people thought their own rep. was one of the 10% of honest reps.
Unless your Judge Judy, its hard to tell the professional liars from the honest guy.
I mean, the best liar wins the job, therefore are Gov. consist of the best liars in the country, these guys can probably pass a polygraph without batting an eye.

It saddens me but I feel the majority of my fellow citizens cannot see through the smoke and mirrors and will vote the same corrupt reps. right back in.
The fact Newt is leading in the Republican debates tells me so many people don't have a memory or a clue.

It scares the chit out of me.  

Posted by Carpenter on December 07, 2011 (11:23AM)

http://www.personalliberty.com/conservative-politics/newt-is-no-rino/?eiid=

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