John Paulson, multi–billionaire hedge fund manager and founder of Paulson & Co., has recently held a seminar stating that now is the time to sell off low-yielding bonds and investing into common stocks. Paulson has stated that the current economic trend is leaning toward double digit inflation which will kill the bond market and he should know. John Paulson became a self made billionaire by being able to gauge the market and make the right decisions.
Born in New York, Paulson worked attended Harvard Business School, where he graduated in the top 5% of his class. He went on to work for such companies as Bear Sterns, Boston Consulting Group and Gruss partners. He founded his own company in `1994 with 2 million dollars of his own and an assistant.
Since his humble beginnings, Paulson & Co. has risen to be one of the top players in the hedge fund market. The company now manages several funds, with the latest being a gold fund which is backing mining and other gold investments.
John Paulson, 55, is ranked 45 on the billionaire list that Forbes issues each year. He is personally worth 12 billion dollars and this does not include the value of his company. Paulson is a philanthropist and makes large contributions to such causes as the Center for Responsible Lending and the New York Stern School of Business. Paulson occasionally contributes to political issues and leans towards the Democratic Party. However, he has made contributions to Republicans and does not outwardly promote either party.
At his seminar, John Paulson also stated that now is the time to purchase a home, or a second or third one. Interest rates will never be this low again and the prices of homes are going to rise after 2012. It is a safe investment in his concern. The billionaire investor also stated that the measures taken by the Federal Reserve are the indicator that everything he is predicting will happen.
John Paulson did not become a billionaire by making poor choices in his investments. Even during the recession, his company continued to show a profit when others were going bankrupt. He has made most of his money investing in mortgage bonds and bankrupt companies. At the time of this writing his funds were worth over 62 billion dollars.
Many people watch what a billionaire invests in as a guideline for their own investments. John Paulson has created quite a stir in his recent quarterly filing when it was noted that he trimmed down much of his bank holdings and raised his share in gold. Market watchers are keeping a close eye on Paulson simply because he seems to know what will happen even before the market does.
Paulson has a long record of success stories under his belt. Perhaps one of the most famous now is K-Mart. When K-Mart entered bankruptcy their stocks dropped to $10 a share. Once Paulson invested into the company the stock emerged from bankruptcy and surged to $190 a share. He has also had major effects on companies such as Yahoo and the publishing house HMH (Houghton Mifflin and Harcourt).