John Paulson is one of the leading investors and hedge fund managers of the United States. He is the founder and president of Paulson & Co., an investment firm based in New York. A few years ago, Wall Street investors who lost money due to the collapse of the US housing market were numerous.
The only major profitable was John Paulson, one of the hedge fund managers who had anticipated the collapse of the US housing market two years earlier. The profit he gained from the short selling of the housing market in 2007 was about USD15 billion. Paulson is personally estimated to earn $ 3 billion to $ 4 billion, and is considered the biggest gain on Wall Street.
John Paulson as Investor
John Paulson is known to be adept at anticipating market movements. Born in Queens, New York in 1955, a graduate of Harvard Business School started his career as a research staff at Boston Consulting Group in 1980. His job was to advise potential investors. Tempted to jump on Wall Street, he switched jobs and this time he worked for leading investor Leon Levy at Odyssey Partners. John Paulson later founded Paulson & Co. in 1994 with a capital of USD 2 million and an employee.
In 2002, Paulson & Co.'s assets growing to USD500 million with a combination of profit and investment funds. At a time when the US economy declined after the boom, Paulson bought some debt-wracked companies, and made a profit after the US economy recovered.
Although once crowned as the world's best trader of 2008 by monthly magazine Trader, Paulson had suffered losses in 2011 when he entered into shares of Bank of America, Citigroup and Sino-Forest Corporation. This makes the Paulson Advantage Fund's subsidiary lose 40 per cent as of September 2011. Amazingly, John Paulson was able to cover the losses with a win from the previous year's action, when he broke into a gold commodity that delivered him a profit of $ 3.1 billion between September 2010 to September 2011.
Prioritize Long Term Strategy
"Many investors make the fatal mistake of buying at a high price and selling at a low price.That strategy is obviously wrong and can not be used for trading or investment.Investment profits are long term, and buying strategies at low prices and selling at high prices are the most appropriate, "said John Paulson who in 2012 and included in the list of world's richest man by Forbes magazine version.
Paulson's Way of Reading the Markets
"In investing, the important thing is strategy.When I worked at the Boston Consulting Group, understanding the business strategy was very beneficial to me I can know why a business can be more profitable than other businesses," he explained. And is it always easy to anticipate the market? "Sometimes it is difficult to interpret market movements ... You should not look back, you should think for the time to come," Paulson said.
The traders and investors who have succeeded in his career largely dedicate his knowledge and time to develop the world of trading and investment such as establishing investment companies, becoming consultants, commentators on various investment and business media, and so forth. We can benefit positively from career trends and successful John Paulson's outlook from the gap with market-anticipated skills and long-term strategies.