Greg Zuckerman of the WSJ released a book a few weeks ago about “The Greatest Trade Ever,” John Paulson’s bet on the subprime crisis that has netted him over $5billion (Many may remember George Soros famously betting against the Pound Sterling and netting about $1 billion). It is getting very good reviews. Here is an excerpt-
Initially, Paulson and the others lost tens of millions of dollars as real estate and stocks continued to soar. Rather than back down, however, Paulson redoubled his bets, putting his hedge fund and his reputation on the line.
Paulson’s winnings were so enormous they seemed unreal, even cartoonish. His firm, Paulson & Co., made $12 billion in 2007, a figure that topped the gross domestic products of Bolivia, Honduras, and Paraguay, South American nations with more than twelve million residents. Paulson’s personal cut was nearly $4 billion, or more than $10 million a day. That was more than the earnings of J.K. Rowling, Oprah Winfrey and Tiger Woods put together. At one point in late 2007, a broker called to remind Paulson of an account worth $5 million, an account now so insignificant that it had slipped his mind. Just as impressive, Paulson managed to transform his trade in 2008 and early 2009 in dramatic form, scoring $5 billion more for his firm and clients, as well as $2 billion for himself. The moves put Paulson and his remarkable trade alongside Warren Buffet, George Soros, Bernard Baruch, and Jesse Livermore in Wall Street’s pantheon of traders. They also made him one of the richest people in world, wealthier than Steven Spielberg, Mark Zuckerberg, and David Rockefeller Sr.
Buy it on Amazon-
http://www.amazon.com/Greatest-Trade-Ever-Behind-Scenes/dp/0385529910
