John Paulson’s Career in High Finance

John PaulsonJohn Paulson is often referred to as “one of the big names in high finance.” It is because of the achievements he has in hedge funds. John has a net worth of $11 billion and a hedge fund having $19 billion under management. Mr. Paulson owns the third most prominent hedge fund worldwide, Paulson $ Co., which he founded in 1994.

John spent his early life and education in New York. Paulson studied at the New York University College from 1973; he graduated summa cum laude with a bachelor’s degree in finance. Paulson also went to Harvard Business School in 1980 and received a master’s certificate in Business Administration. John graduated from Harvard as a Baker Scholar. Long after leaving Harvard, Paulson donated $400 million to Harvard Business School, the largest donation in the college’s 379-year history.

John Paulson became famous after betting against a housing market in 2007. After a significant number of shorts and bets, he made a personal profit exceeding $3 billion; his hedge fund made a $15 billion profit. Mr. Paulson continued his shorts and bets in 2008, betting against significant financial institutions in the UK and US, causing the downfall of most companies.

John Paulson seemed to be a risk taker since his college. In the 1970s, he paused college studies to pursue business. Paulson started a venture of exporting children’s clothing to New York’s department stores. He realized the experience had low profits, so he returned to New York University to complete his studies. Mr. Paulson worked in various firms such as BCG, Odyssey Partners, Gruss Partners, and Bear Sterns.

Despite winning over $20 billion from gambling, Paulson sees the upcoming crypto market as a venture that will eventually collapse. In an interview with Bloomberg, John Paulson says crypto is too volatile. He says in crypto, one cannot limit the risks. Paulson believes one can be right in crypto over a long period, but they can be wiped out in the short term. John told Bloomberg that the best investment is to buy a home. He says home prices are always appreciating meaning one can sell the property at a later time for high profits.