Paul Ryan’s Portfolio Is the Envy of Wall Street

by Jeff Reeves | August 14, 2012 7:30 am

As Mitt Romney’s new running mate on the Republican presidential ticket, Paul Ryan is going to have a lot of explaining to do when it comes to jobs policy and federal spending plans.

But one thing that may not get much attention — at least in the mainstream media catering to typical voters — is Paul Ryan’s strategy on investing.

According to Ryan’s 2011 financial disclosure statements[1] released by The Center for Responsive Politics, the Wisconsin legislator has a portfolio that most of us retail investors can relate to: a diversified group of large cap stocks.

And his portfolio largely beat the market, based on older reports.

Among tech stocks bought in 2011 include leaders Apple (NASDAQ:AAPL[2]), Amazon (NASDAQ:AMZN[3]) and Priceline.com (NASDAQ:PCLN[4]) — up 55%, 24% and 20% respectively his year. If Ryan is still holding, he’s getting paid nicely.

Other big holdings include Home Depot (NYSE:HD[5]), up 26% in 2012, and General Electric (NYSE:GE[6]), which is up 17%.

The American people should also know he has held profitable stakes in some big banks, including Wells Fargo (NYSE:WFC[7]), Bank of America (NYSE:BAC[8]) and (gasp!) Goldman Sachs (NYSE:GS[9]). Whether the U.S. taxpayer made the right move getting into these Too-Big-to-Fail entities doesn’t matter — Ryan made shrewd investments that are paying off nicely.

Ever the long-term planner, though, Paul Ryan isn’t just letting it ride in equities. He has a variety of bond investments and diversified, low-risk mutual funds from Fidelity and Edward Jones, among others.

Quirkiest of all, however, is a miniscule investment in the social media company Twitter[10]. Not directly, of course. Ryan has a stake in the T. Rowe Price New Horizons Fund (MUTF:PRNHX[11]) that invests in small, hot tech companies. His indirect stake when you do the math is only worth about $50 or so, according to CNNMoney[12].

Sure, it’s been a good year for the stock market so maybe this is reading too much into Paul Ryan’s investing acumen.

But it sure is fun.

Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.”[13] Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

Endnotes:
  1. Ryan’s 2011 financial disclosure statements: http://pfds.opensecrets.org/N00004357_2011_a.pdf
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  4. PCLN: http://studio-5.financialcontent.com/investplace/quote?Symbol=PCLN
  5. HD: http://studio-5.financialcontent.com/investplace/quote?Symbol=HD
  6. GE: http://studio-5.financialcontent.com/investplace/quote?Symbol=GE
  7. WFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WFC
  8. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  9. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  10. miniscule investment in the social media company Twitter: http://finance.fortune.cnn.com/2012/08/13/paul-ryans-tiny-twitter-investment/
  11. PRNHX: http://studio-5.financialcontent.com/investplace/quote?Symbol=PRNHX
  12. according to CNNMoney: http://finance.fortune.cnn.com/2012/08/13/paul-ryans-tiny-twitter-investment/
  13. “The Frugal Investor’s Guide to Finding Great Stocks.”: http://www.amazon.com/dp/B007KB9CSI/ref=rdr_kindle_ext_tmb

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