The search continues for insight into the views and legal philosophy of Supreme Court nominee Judge Samuel Alito. Alex Chadwick speaks with Slate financial writer Henry Blodget about Alito's finances, and what they tell us about the man under the judge's robe.
ALEX CHADWICK, host: Here in this country, supporters and opponents of Supreme Court nominee      Samuel Alito are right now pouring over his written records trying to      find out more about what kind of a judge and man he is.  One kind of      record that does not get as much public scrutiny is a nominee's financial      disclosure.  These are required for people to make when they're federal      judges.  Henry Blodget is a former securities analyst and a contributor      to the online magazine Slate, and he's been going through Judge Alito's      financial past to figure out what we can learn from it, and he joins us      again now.</s>ALEX CHADWICK, host: Henry, what is Judge Alito's net worth?</s>HENRY BLODGETT reporting: He is worth, according to the financial statements, approximately      $600,000 to $1.2 million, and that is excluding his house, which      certainly could be worth a lot in today's market.  He is mostly invested      in low-cost funds and index funds, which is unusual and we thought very      interesting.</s>ALEX CHADWICK, host: And what is interesting about that?  What is it that you find      interesting about his investment record that's public?</s>BLODGETT: Well, on Slate we have--we've started this sort of informal      series of looking at financial disclosures and looking at them sort of as      a psychological window into how people think and make decisions and so      forth. And what's unusual here--and it's very different from John      Roberts, for example--is that Alito is investing--he's very diversified,      which is obviously good, but he's also mostly invested in Vangaurd, which      is a low-cost fund provider.  And I think one thing that people assume,      if they don't actually do the work to look at what makes sense from a      mutual fund perspective--they assume that the more a mutual fund costs or      the more a company does to research other companies and so forth, the      better.  But actually, in fact, in the mutual fund world, Wal-Mart prices      do not get you Wal-Mart-quality merchandise; they usually get you      Saks-quality merchandise.  And that's what Vanguard is providing.  And      Alito, whether it's just a financial adviser telling him that or whether      he's figured it out on his own, he is invested in a low-cost fund      provider, which is very smart.</s>ALEX CHADWICK, host: And you like his tax investment strategy as well.</s>BLODGETT: He also discovered that taxes matter.  Most people, most      casual investors, tend to focus on pretax returns.  And we're taught,      too, when we read the newspaper and we listen to mutual fund companies,      they all focus on pre-tax returns.  But, of course, the only thing that      really matters is the post-tax return.  And so several of Alito's funds      are tax-managed or tax-exempt funds, which is another indication that      he's really focused on the bottom line.</s>ALEX CHADWICK, host: You suggest that his investment strategy might lead you to      think this is someone who can resist pressures around him.  How is that?</s>BLODGETT: I think it's not only resisting pressures, it is the ability      to look through and look beyond what is sort of the common wisdom about      something like investing.  Again, I think a lot of people believe, from      listening to the television or reading a newspaper or listening to Wall      Street, that the smart investment strategy is to either buy a few mutual      funds or go out and research companies and so forth.  And, in fact, if      you actually look at the facts, it is much smarter to invest in index      funds and managed costs and so forth.  And that's hidden in any way.  A      lot of people have said that.  But in order to really realize that and      act on it, you have to look at the facts and you have to have the      discipline to put it in practice.  And my conclusion in looking at Alito      doing that is that that was a very good sign for a judge, who obviously      is going to be bombarded by stories from both sides and has to look      through that and find the truth and then rule on it.</s>ALEX CHADWICK, host: Maybe he just isn't interested in money.</s>BLODGETT: That's possible, but if he is just not interested in money,      which, by the way, is a great investment strategy, he has done the right      thing with his lack of interest, whereas most people do the wrong thing      because they're hearing what other people are saying and sort of acting      on that.  So whether he's not interested or not, he's doing the right      thing.</s>ALEX CHADWICK, host: Opinion and analyst from Henry Blodget, who investigates the      finances of high-profile federal nominees for the online magazine Slate.</s>ALEX CHADWICK, host: Henry, thank you again.</s>BLODGETT: Thanks for having me.