John Paulson has a net worth of 7.8 billion USD and is listed at 170 on the Forbes Billionaires List.
Paulson’s call to fortune and fame came from shorting the US housing market in 2007. He foresaw the subprime mortgage crisis and bet against mortgage-backed securities by investing in credit default swaps.
It was the greatest trade in history. John Paulson personally earned $4 billion on this trade alone in 2007. Within a year Paulson was transformed from an anonymous money manager to a financial legend.
But John Paulson didn’t sail off into the sunset. Instead, he made another hugely profitable call back in 2010 smashing yet another hedge fund record in 2010 where he earned $4.9 billion from a single trade.
His father, Alfredo Guillermo Paulsen was born in Ecuador to a father of half French and half Norwegian descent. Alfredo was orphaned at fifteen and at age sixteen moved to Los Angeles with his younger brother. His mother is Ecuadorian and the daughter of Jewish immigrants from Lithuania and Romania who had moved to New York City.
In 1980 John Paulson graduated from Harvard Business School, on a Sidney J. Weinberg/Goldman Sachs scholarship, earning an MBA as a George F. Baker Scholar (top 5 percent of his class). He then began his career at Boston Consulting Group in 1980 where he did research, providing advice to companies.
John Paulson moved on to Bear Stearns working in the mergers and acquisitions department, and then to Gruss Partners LP, where he was made partner. In 1994, he founded his own hedge fund, Paulson & Co., with $2 million and one employee. By 2003, his fund had grown to $300 million in assets.
John Paulson shorted the US housing market in 2007 and personally earned $4 billion on this trade alone!
He made another hugely profitable call back in 2010 smashing yet another hedge fund record in 2010 where he earned $4.9 billion from a single trade!
John Paulson is a contrarian investor. He profits from a crisis. He has also become a major investor in gold.
See The Big Short Movie…
Many investors make the mistake of buying high and selling low while the exact opposite is the right strategy to outperform over the long term – John Paulson
John Paulson rarely gives television interviews and told one interviewer “I avoid the media.”
A rare interview with John Paulson in which he discusses how he uses mergers and acquisition to make money , giving his 3 ways to make money in merges and acquisition and his view on past deals.
If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lead your relatives the money to buy one – John Paulson
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Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.
Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.
A year later and the activist investor Dan Loeb targets Sony
Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.