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Investors Pay Attention to Billionaires:
Billionaires have a lot of money to throw around in the stock market, and their investing decisions are monitored by the investment community. Billionaire Warren Buffett is regarded as the best investor of all time. For those of you who are bored with Warren, John Paulson is a billionaire investor who pro investors watch carefully.
John Paulson is a hedge fund giant, and although he isn't as well known as Warren Buffett, he still has a net worth of $4.5 billion. According to Steve Grasso, john Paulson is someone the mutual funds as well as the hedge funds are watching. He is the Warren Buffett for the next generation.
Paulson's Success:
Okay, so he has amassed a fortune, but how well has he predicted the market's direction? Paulson predicted the mortgage markets implosion in 2007, as well as the collapse of the financial industry in 2008. Not only did he predict it, but he made a lot of money while many others lost a fortune.
Ever since, Paulson has been monitored by big investors, especially his banking trades. Normally an investors' best bet is to follow the money and invest right along with them. Right now the banking sector is in rally mode, and looks ready to push higher. Here is a current list of Paulson's financial holdings:
John Paulson's Financial Holdings
- 2% Stake in Citigroup
- 168 million shares of Bank of America
- 2 million shares of Goldman Sachs
- 2 million shares of UltraShort Financials ProShares
Citigroup was one of the hardest hit financial stocks during the collapse, which allowed John Paulson to acquire a 2% ownership in Citigroup. Citi has surged over the past week or two, and probably won't stop until the $6 - $7 range.
The Fast Money traders on CNBC agree that following John Paulson is a good idea. Joe Terranova added that Paulson is also heavily into gold. With inflation fears mounting, gold looks ready to break out to record levels. Keep an eye on his holdings, and remember there is a good reason John Paulson is a multi-billionaire.
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