Warren Buffett’s investment return in 2023 was approximately 15%. That’s how much of him Berkshire Hathaway stock increased. But the legendary investor didn’t come close to matching the achievements of a handful of elected officials on Capitol Hill.
Four members of Congress generated triple-digit returns in the stock market last year. Here are the top three stocks they bought.
1. Nvidia
Rep. Brian Higgins, D-N.Y., saw his investments skyrocket nearly 239% in 2023. That return made him by far the biggest winner in congressional stock trading. Rep. David Rouzer (RN.C.) ranked #4 with a return of nearly 106%. These two congressmen invested in the same stocks: Nvidia (NASDAQ: NVDA).
Neither Higgins nor Rouzer actually bought Nvidia stock last year. They also did not invest in other stocks. They both took positions in Nvidia in 2021 and haven’t sold their shares since. Nvidia is the only stock in Higgins’ portfolio.
Nvidia has been a great stock to own in 2023. The chipmaker’s shares soared thanks to rising interest in generative AI. Nvidia couldn’t produce enough AI chips to meet the huge demand.
2. NGL Energy Partners
Rep. Mark Green (R-Tenn.) was the second most successful stock investor in Congress last year. The Tennessee Republican’s total return was 122%.
Green sold shares of pipeline operator Energy transfer LP for much of 2023. However, it was recharging another energy supply — NGL Energy Partners LP (NYSE:NGL). The congressman also purchased shares of NGL Energy Partners in 2022.
NGL Energy Partners shares rose 360% last year. However, over the past seven years, the midstream energy share has fallen to roughly 97% below its all-time high. NGL Energy’s earnings outlook improved significantly, prompting some investors (including Green) to get back into the stock.
3. Coinbase Worldwide
Rep. Garret Graves (R-La.) ranked third among congressional stock investors last year. Graves achieved a return of almost 108%.
The Louisiana congressman’s profits came from one share. Graves bought 8,000 shares of Coinbase worldwide (NASDAQ: MINT) in September 2022 and held them throughout 2023.
Coinbase Global operates a leading cryptocurrency exchange. The shares plummeted in 2022. However, Coinbase benefited when cryptocurrencies returned to favor in 2023. That also applied to Rep. Graves.
But while Graves posted a triple-digit return last year thanks to Coinbase, he may find it difficult to repeat that performance in 2024. The GOP congressman sold all of his stake in Coinbase earlier this year and has reported no other stock transactions. far.
Can these stock picks continue to rise in Congress?
All three of these top stocks from last year’s top congressional investors have continued to rise in 2024. Nvidia is the biggest winner of the year so far, with its share price up more than 70%.
However, valuation could become an issue at Coinbase and Nvidia. Coinbase trades at a whopping 83.3 times forward earnings. Nvidia’s expected earnings multiple is 35.7. Meanwhile, NGL Energy’s momentum has slowed significantly. The company also reported year-over-year revenue and profit declines in the quarter ended December 31, 2023.
Nvidia, NGL Energy Partners and Coinbase Global could continue to rise. However, I think investors – including those in Congress – can find stocks to buy in 2024 with even better growth prospects.
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Keith Speights holds positions at Berkshire Hathaway. The Motley Fool holds positions in and recommends Berkshire Hathaway, Coinbase Global, and Nvidia. The Motley Fool has a disclosure policy.
Four Members of Congress Generated Triple-Digit Returns in the Stock Market Last Year: These Are the Three Stocks They Bought, originally published by The Motley Fool
