Obama the Stock Picker? His Ideas Work for Elon Musk of Tesla

NEW YORK (TheStreet) -- I know this is about to sound obnoxiously ridiculous, but maybe President Barack Obama is a good stock picker. Maybe the president actually did some research about the stock market before jumping onto the stage, yelling, "Thank you, America!"

But really, Obama is a pretty smart guy. He graduated from Harvard Law School; he has a really great knack for writing awesome speeches. But you know who else came from Harvard? Jeremy Lin, the best basketball player in the NBA (Linsanity!).

Anyway, back to Obama. He's really detail oriented, which is why he "owned" the Republican candidates during both presidential debates.

He's smart enough to become the president of the United States. So let's see what he has to say about the stock market since 2009.

From Obama's 2009 address to Congress:

But while our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover, and the United States of America will emerge stronger than before.

Not bad Mr. Obama, oh wait, I mean President Obama. Look at how well the stock market did from February 2009 to December 2009.

So maybe he's got some street cred. Let's hear some more.

Obama's 2009 address to Congress said:

To support that innovation, we will invest $15 billion a year to develop technologies like wind power and solar power, advanced biofuels, clean coal, and more efficient cars and trucks built right here in America.

Let's look at the two-year stock performance of Tesla Motors (TSLA), First Solar (FSLR), Solar City (SCTY) and General Electric (GE). After all, Tesla Motors makes the electric car. First Solar makes solar panels and Solar City installs the panels. General Electric makes the wind turbines.

Over the past two years or so, the four companies have done pretty well. Of course with GE you would have to factor back in the dividends over the period to give a better representation of the returns. But I think you're getting the idea that Obama's bet on alternative energy and infrastructure beat the stock market.

Obama continued to talk about renewables in his 2010 State of the Union Address:

It means continued investment in advanced biofuels and clean coal technologies. And yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America.

According to analyst consensus extimates, Tesla Motors will generate $1.19 in earnings per share for fiscal year 2014. The stock is projected to earn $3.16 per share in fiscal year 2015.

Furthermore, Elon Musk of Tesla explained that removing patents will help the company earn more money. Business students would disagree with the notion that by making its technology free or licensable, Tesla will more effectively compete with the combustion engine.

To compete with fossil fuels, Musk has to arm everyone with the same knowledge on batteries and electricity. After all, an ecosystem can only emerge if people are able to compete effectively in the market place. And Telsa clearly wants that ecosystem instead of a monopoly.

Obama then mentioned in his 2011 State of the Union speech:

Our free enterprise system is what drives innovation. But because it's not always profitable for companies to invest in basic research, throughout history our government has provided cutting-edge scientists and inventors with the support that they need. That's what planted the seeds for the Internet. That's what helped make possible things like computer chips and GPS.

Elon Musk has to provide the cutting-edge scientists and inventors to other automotive companies. Awkward though it may be, Tesla Motors takes a public-sector approach to a private-sector problem.

Obama went on to declare his track record in his 2014 State of the Union Address:

An entrepreneur flipped on the lights in her tech startup, and did her part to add to the more than eight million new jobs our businesses have created over the past four years. An autoworker fine-tuned some of the best, most fuel-efficient cars in the world, and did his part to help America wean itself foreign oil.

Here are the results of your efforts: The lowest unemployment rate in over five years. A rebounding housing market. A manufacturing sector that's adding jobs for the first time since the 1990s. Our deficits cut by more than half. And for the first time in over a decade, business leaders around the world have declared that China is no longer the world's number one place to invest. America is.

If you picked stocks on the basis of what the Obama government invested in, you would have earned a solid fortune.

I believe that the best investment opportunities are in technology. It's through innovation that wealth creation occurs, and through creating efficiencies real GDP grows. Human capital is by far the greatest source of capital.

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At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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