Paul Pelosi, the husband of the Speaker of the U.S. House of Representatives, Nancy Pelosi, bought 5,000 shares of a cybersecurity firm on September 3, 2020. CrowdStrike stock has had a good year, and that investment has made him almost three quarters of a million dollars wealthier, at least on paper.
Paul Pelosi purchased that stock only three weeks ahead of a major announcement: on September 23 CrowdStrike announced a deal to buy Preempt Security for $96 million.
It has since followed a policy of wise acquisitions with companies with which it has synergy, and that helps account for the growth in its value.
That firm, CrowdStrike Holdings Inc., which had only gone public the year before, has had a very good year, and its stock — which was worth $129.95 when Pelosi bought it, was worth $278.93 at the close of trading a year later, September 3, 2021. CrowdStrike offers cloud-delivered security solutions in several geographic markets: the United States, Australia, Germany, India, Israel, Romania, and the United Kingdom.
This is an increase in value of 111%, and a paper gain of more than $744,000. Of course, as many a stock investor will tell you, these kinds of gains are similar to a growing pile of chips at the poker table. One’s wealth doesn’t increase in any reliable way until one sells the chips/shares and takes that portion of one’s holdings “off the table.”
Who is Paul Pelosi?
Aside from owning a bloc of CrowdStrike stock, and being the husband of the Speaker, there are other things of note.
He was born in 1940. His brother Ronald Pelosi is a well-known figure in the financial world. Ronald has worked as an arbitrator for the American Stock Exchange, the National Association of Securities Dealers, the National Futures Association, the New York Stock Exchange, and the Financial Industry Regulatory Authority.
Paul Pelosi married Nancy in 1963.
He owns and operates Financial Leasing Services, a real estate and venture capital investment and consulting firm. He is said to divide his time equally between the VC and the real estate sides of that business.
On the real estate side, he has made well-timed investments in properties in the San Francisco and Napa areas in California. He also bought into underdeveloped real estate in Sacramento that gained $4 million in value in late 2013 and early 2014.
Paul Pelosi has stakes in San Francisco office buildings and in other commercial real estate elsewhere in the state, including a building in which a Walgreens is lessee.
What Pelosi has done in the venture-capital world is difficult to pin down. The field does not have the transparency of investments that one sees in publicly listed companies (or land).
Other Striking Stock Investments
Aside from CrowdStrike stock, Paul Pelosi has made other stock and stock option purchases that are worth public attention.
He has investments in Apple, Alphabet (Google) and Amazon. The high-tech sector in general, and these two firms in particular, are often accused of exercising undue and largely negative influence over American life and politics. As those sentiments come to be expressed in Congressional bills and investigations, the matter of the Pelosis’ interest in high-tech equities will surely arise.
On June 3 of this year he purchased a block of call options on 5,000 shares of Nvidia (NASDAQ:NVDA) with a strike price of $400. The following month there was a 4-for-1 split, which means these options now have a call price of $100 each and control 20,000 shares.
Nvidia makes graphics processing units (GPUs) for the gaming and professional markets. This makes it something of an upstart in a field still dominated by Intel and QualComm.
As politics in Washington starts to resemble trench warfare, much of the information will likely be up for discussion. Nancy Pelosi has made a number of enemies during her tenure. So it wouldn’t be surprising if there were some complaints about stock purchases, too.