Ohio Senator J.D. Vance wasn't a completely unknown figure to many Americans when he became GOP presidential nominee Donald Trump's running mate. Vance's Hillbilly Elegy was already a best-selling book and a heavily watched movie on Netflix.
Vance is no stranger to investing, having worked as a venture capitalist in California for several years. However, he hasn't invested much since embarking on a political career. The GOP VP nominee made only one public stock trade over the last year. Here's what it was -- and how it worked out for him.
Technically, Vance has executed three trades since becoming Ohio's junior U.S. senator. On Aug. 30, 2023, he sold a stake in Narya Capital Management LLC and invested in Narya Capital Fund II LP the next day. The two trades together totaled $3.18 million.
Narya Capital isn't a publicly traded company, though. It's a venture capital firm Vance founded in 2020 that focuses on investing in early-stage technology businesses based outside of Silicon Valley.
The Republican senator's sole trade of a publicly traded company was made on Oct. 3, 2023. Vance sold $75,000 worth of shares of discount retail giant Walmart (NYSE: WMT).
Walmart isn't the only public stock Vance has owned. His public disclosures also reveal positions in Kentucky-based food producer AppHarvest and several index exchange-traded funds (ETFs).
Was selling Walmart stock a good move in retrospect?
Vance owned shares of Walmart at the end of 2022. The stock slipped 2% during the year, which wasn't too bad, considering the S&P 500 sank more than 19%. When he sold Walmart shares in October 2023, the stock was up between 12% and 13% year to date.
The senator's trade might have seemed quite smart soon afterward. On Nov. 17, 2023, Walmart reported disappointing third-quarter results. Although the company beat Wall Street revenue and earnings estimates, it gave a cautious outlook on consumer spending that spooked investors. Walmart stock tumbled more than 8%, wiping out much of its gains for the year.
However, there's more to the story. Later in 2023, Walmart's shares began to rise steadily. The retailer reported better-than-expected Q4 2023 and Q1 2024 results. Walmart also announced a 3-for-1 stock split on Jan. 30, 2024, that went into effect after the market close on Feb. 22, 2024.
Walmart stock is now up more than 32% since Vance sold shares last year. At least on the surface, his trade doesn't look like a good move in retrospect.
An important lesson for any investor
We don't know what Vance did with the proceeds from his sale of Walmart stock. It's possible that he put the money to even better use.
Still, though, his lone public stock trade over the last year serves as an important lesson for any investor. A stock's past performance isn't necessarily indicative of how it will perform going forward. Selling too soon is a mistake many investors make -- not just the ones who ultimately run for Vice President of the United States.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Walmart. The Motley Fool has a disclosure policy.
GOP VP Nominee J.D. Vance Made 1 Public Stock Trade Over the Last Year. Here's How It Worked Out for Him. was originally published by The Motley Fool