Warren Buffett’s investment return in 2023 was around 15%. That’s how much his Berkshire Hathaway stock increased. But the legendary investor didn’t come close to matching the performance of a handful of elected representatives on Capitol Hill.
Four members of Congress generated triple-digit returns in the stock market last year. These are the three key stocks they bought.
1. Nvidia
Rep. Brian Higgins, D-N.Y., saw his investments skyrocket by nearly 239% in 2023. That return made him by far the biggest stock-trading winner in Congress. Rep. David Rouzer (R-N.C.) ranked at No. 4 with a return of nearly 106%. These two congressmen invested in the same stock: Nvidia (NVDA -3.87%).
Neither Higgins nor Rouzer actually bought shares of Nvidia last year, though. They didn’t invest in any other stock either. They both initiated positions in Nvidia in 2021 and haven’t sold their shares since. Nvidia is the only stock in Higgins’ portfolio.
Nvidia was a great stock to own in 2023. Shares of the chipmaker soared thanks to the surging interest in generative AI. Nvidia couldn’t produce enough AI chips to keep up with the tremendous demand.
2. NGL Energy Partners
Rep. Mark Green (R-Tenn.) was the second-most successful stock investor in the U.S. Congress last year. The Tennessee Republican’s total return topped 122%.
Green sold shares of pipeline operator Energy Transfer LP throughout much of 2023. However, he loaded up on another energy stock — NGL Energy Partners LP (NGL -1.21%). The congressman also bought shares of NGL Energy Partners in 2022.
NGL Energy Partners stock zoomed 360% higher last year. Over the previous seven years, though, the midstream energy stock plunged to roughly 97% below its high. NGL Energy’s earnings outlook improved considerably, prompting some investors (including Green) to pile back into the stock.
3. Coinbase Global
Rep. Garret Graves (R-La.) took the No. 3 spot among congressional stock investors last year. Graves achieved a return of nearly 108%.
The Louisiana congressman’s gains came from one stock. Graves bought 8,000 shares of Coinbase Global (COIN -2.31%) in September 2022 and held them throughout 2023.
Coinbase Global operates a leading cryptocurrency exchange. Its shares plummeted in 2022. However, Coinbase benefited as cryptocurrencies returned to favor in 2023. So did Rep. Graves.
But while Graves made a triple-digit return last year thanks to Coinbase, he might have a hard time repeating that performance in 2024. The GOP congressman sold all of his stake in Coinbase earlier this year and hasn’t reported any other stock trades so far.
Can these congressional stock picks keep soaring?
All three of these top stocks of the top congressional investors of last year have continued to rise in 2024. Nvidia has been the biggest year-to-date winner with its shares jumping more than 70%.
However, valuation could become an issue with Coinbase and Nvidia. Coinbase trades at a whopping 83.3 times forward earnings. Nvidia’s forward earnings multiple is 35.7. Meanwhile, NGL Energy’s momentum has slowed considerably. The company also reported year-over-year revenue and earnings declines in its quarter ending Dec. 31, 2023.
Nvidia, NGL Energy Partners, and Coinbase Global could keep soaring. However, I think investors — including those in the U.S. Congress — can find stocks to buy in 2024 with even better growth prospects.
Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, Coinbase Global, and Nvidia. The Motley Fool has a disclosure policy.
