When it comes to picking ASX stocks, some of our politicians might just surprise you. From tech giants to iron ore miners, their portfolios offer a glimpse into where they see the potential for growth.
Australian politicians are required to disclose their stock transactions within 28 days. They do this by updating their public Register of Members' Interests.
This is designed to ensure transparency and uphold market integrity.
We don't want our pollies front-running the market with insider information now, do we?
With that, let's see what some of the favourite ASX stocks are among our policymakers.
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Politicians' top ASX stock picks
It turns out some politicians are quite savvy when it comes to the stock market. For instance, Ted O'Brien of the Coalition's energy department has made some Buffett-like stock picks.
His portfolio includes big ASX stocks like JB Hi-Fi Ltd (ASX: JBH), Super Retail Group Ltd (ASX: SUL), Woolworths Group Ltd (ASX: WOW), and Fortescue Ltd (ASX: FMG), to name a few.
Two of those names – JB Hi-Fi and Super Retail – have delivered solid returns in the past 12 months, as shown in the chart below.
However, according to The Australian Financial Review, O'Brien's total stocks generated an average return of 64% between May 2022 and the end of FY24.
Another standout is Labor MP Sally Sitou, whose international stock portfolio features companies like Nvidia Corp (NASDAQ: NVDA), which has been a stellar performer in recent months. Her returns come close to O'Brien's, with an average of about 60%.
What's in favour?
Further, it shows that the most commonly held stocks amongst politicians are Telstra Corporation (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB).
They also own a fair bit of BHP Ltd (ASX: BHP) and Wesfarmers Ltd (ASX: WES), alongside energy and resource players Woodside Energy Group Ltd (ASX: WDS) and South32 Ltd (ASX: S32).
However, a nuance of the Share Register of Member's Interests is that it does not require elected members to disclose how much stock they own, nor is it disclosed if they are buying more of the investment or dipping in for the first time.
This is unlike the US, where senators must report their and/or their spouse's trades almost immediately.
Investors may be familiar with politician-tracking funds, such as the Unusual Whales Subversive Democratic Trading ETF (NYSEMKT: NACNC), which tracks the trades of US-congresswoman Nancy Pelosi's husband, Paul Pelosi.
The Subversive Unusual Whales Republican ETF (KRUZ) also lets investors own the stocks of those members in the US Republican members of Congress.
A view of these fund's returns shows they are up 13% and 6% this year to date, respectively.
There are currently no funds like this on the ASX.
Foolish takeaway
The ASX stock picks of Australian politicians offer a fascinating glimpse into their investment strategies.
Whether it's the retail strength of ASX stocks like JB Hi-Fi and Woolworths or the resource-driven potential of Fortescue Metals.
You can monitor what shares our politicians are buying and selling by searching the Register of Member's Interests. Here, you will find a full list of all members' holdings, including historical filings from previous years.
