Part 3/10:
Data reveals that more than two dozen members of Congress outperformed legendary investor Warren Buffett last year, with returns soaring up to 149%—a feat Buffett himself has never matched in a single year. These astonishing figures suggest that politicians, often seen as just lawmakers, are also some of the most successful traders, thanks to an insider advantage that is both public and accessible.
How Do Politicians and Insiders Do It?
Thanks to a little-known legal loophole, members of Congress and corporate insiders can access and act on sensitive information well before the market reacts—legally. An important aspect of this strategy is tracking the public disclosures of these insiders, which reveals when they are buying or selling stocks they are closely connected to.