John Paulson taps into the keys to investing

John PaulsonDespite making $15 billion dollars shorting the housing market in 2007, a contrarian move that paid off handsomely, John Paulson, the President at Paulson & Co., is actually a careful investor who has his own methods for investing.

For example, he doesn’t short everything, including cryptocurrency, which Mr. Paulson feels is due for a major fall in the market.

The reason John Paulson doesn’t short cryptocurrency is that it doesn’t fit into one of his investment rules: never short a product or an investment opportunity that has so much potential downfall that you can’t really calculate its risk

Mr. Paulson feels that cryptocurrency, no matter what it does in the short term, will eventually come crashing down and be worth nothing.

On the contrary, Mr. Paulson feels gold is a good investment because investors hold only a fraction of gold’s total value.

John Paulson, who began life as a poor Ecuadorian immigrant in Queens New York, worked extremely at his education and made the very best of the opportunities that the US offers which few other countries offer in the world in terms of education.

In 1977 he graduated with a degree in finance from New York University’s College of Business and Public Administration, (graduating summa cum laude by the way, and in

1980 he received an MBA from Harvard, achieving a Baker’s Scholar designation in the process, for being among the top 5 percent of graduates.

While always a risk taker, and having a few bumps along the way to amassing a personal fortune worth approximately $4 billion dollars and owning an investment company that

Manages billions, nevertheless, John is actually relatively conservative when it comes to investing.

Sure he is willing to short the right product when it comes along, but his investment strategy is first of all not to lose money. The 66-year-old Paulson says that investors will forgive you if you don’t meet certain financial benchmarks, but they abhor losing money.

The second part of his investment strategy also makes perfect sense. Invest in what you know fully, not in just any marketing trend that meets your eye.

Mr. Paulson says most investors tend to lose money because they are chasing the market trying to discover emerging trends when they would be better off being cautious investors and betting on sure things.

 

Despite making $15 billion dollars shorting the housing market in 2007, a contrarian move that paid off handsomely, John Paulson, the President at Paulson & Co., is actually a careful investor who has his own methods for investing. For example, he doesn’t short everything, including cryptocurrency, which Mr. Paulson feels is due for a major…