In the first quarter of this year, Donald Trump placed over 3,600 buy and sell orders in companies whose profits he could affect. Previous presidents have avoided doing so. Trump invested up to $6 million in Nvidia, a business whose sophisticated semiconductors he sold to China last year, according to a report. His fund also bought Lockheed Martin, General Dynamics, and Northrop Grumman shares affected by the Iran war. “He would commit a crime as defense secretary,” said Richard Painter. He can do this technically, but it involves a basic breach of trust.” Federal personnel cannot own financial assets that may influence their policy obligations, but the president is exempt. According to a spokesperson for the Trump family business, the president’s investment portfolio is managed by third parties with “sole and exclusive” authority. “Neither President Trump, his family, nor The Trump Organization plays any role in selecting, directing, or approving specific investments,” Benza stated.
“They are unaware of trading activity and have no say in investment or portfolio management.” Awareness of his portfolio may influence the president’s health policies, federal contracting, and military actions, ethics officials say. The 100-page stock trading report submitted with the federal Office of Government Ethics suggests a potential exchange of over USD 100 million over three months, with an average of 50 trades per day on market days. The report shows more purchases than sells, but the exact ratio is unknown due to the lack of transaction figures, only ranges. Trump has generally invested little in the stock market compared to his net worth, but his new financial infusion may be changing this.
Since his return to the presidency, the Trump Organization has received tens of millions in upfront fees from international developers seeking to brand resorts with his name and hundreds of millions from anonymous cryptocurrency transactions, making it difficult to determine if the buyers sought favor with the president. Before taking office, all modern US presidents have sold their stocks, invested in broadly diversified funds, or created a “blind” trust to hide their assets. George HW Bush and Bill Clinton followed the blind trust method. Son George W. Bush sold his stocks. Barack Obama held diverse mutual funds. Biden did not trade. The president owns Apple, Boeing, and Tesla in addition to Nvidia. Trump visited China with all four company CEOs. The portfolio includes Intel, which the government bought 10% of last year. The fast-food-loving president recently invested in Shake Shack, Papa John’s, and Cheesecake Factory.
Many trades involved American firm shares whose earnings were directly affected by his government. All modern US presidents until Trump avoided trading stocks due to the perception of impropriety, given their potential to drastically alter company fortunes. This shows his contempt for norms. All modern US presidents have avoided stock trading because it seems unethical given their potential to affect corporate finances. Trump is undermining that precedent, not just breaking it. President Trump’s portfolio made nearly 3,500 transactions in the first quarter, according to a report. The volume of transactions and the many trading targets—specifically US corporations whose revenues he directly influenced—are astonishing.