John Paulson: Gold Is Going Higher

"Gold will rise in proportion to the creation of paper dollar [by the Fed].”

John Paulson

John Paulson: No Real-Estate Recovery This Year

“In my eyes, the major risk for the American recovery is the stagnation of the residential real-estate market. It will be difficult to have a rebound in real-estate prices this year.”

John Paulson

John Paulson: My Top 6 Stocks

 GLD - SPDR Gold Trust

APC - Anardarko Petroleum

RIG - Transocean

BLK - Blackrock

GENZ - Genzyme

MDT - Medtronics

John Paulson: My Top 20 Stocks

John Paulson's top 20 holdings:

SeekingAlpha

John Paulson's Favorite Blue Chip Stocks

JNJ (Johnson&Johnson)
KO (Coca Cola)
PFE (Pfizer)
C (Citigroup)
BAC (Bank Of America)
STI (Suntrust Banks)
RF (Regions Financial).

John Paulson Made Investment History With $5 Billion Income in 2010

John Paulson: Focused On Restructured Equities

"In the midst of the credit bubble in 2006, we bought protection on our corporate and mortgage credit, which drove our returns in 2007. In 2008, we shifted our focus to shorting the equity of financial firms we thought could fail because of their exposure to credit losses, which was the main contributor to our gains in 2008. In late 2008 and early 2009, as credit markets bottomed, we switched to long distressed credit. From 4Q 2008 through 2Q 2009, we went from having no long exposure in credit to being $25 billion long. Long credit exposure drove our profitability in 2009.

As high yield bonds now trade at par and yields have plummeted, our focus has shifted to restructuring equities as the driver of future returns. While returns in our current-pay portfolio are still decent, we believe going forward the highest returns will be in restructured equities, mergers and acquisitions, and event arbitrage."

John Paulson

John Paulson Investment Letter

 

courtesy of Zerohedge

John Paulson: We're Bullish And Do Not Want To Be Under-Invested

"We have spent the last year and half making restructuring investments in high quality assets at deeply distressed prices to maximize gains in an economic recovery. In total we've invested over $20 billion in more than 40 different transactions. Now that these companies have repaired their capital structures, their equity offers substantial upside appreciation relative to downside risk. This is part of the cycle where we want to have long event exposure and do not want to be under-invested."

John Paulson

John Paulson Is A Buyer Of Stocks

 

"The equity risk premium in the market is the highest it has been in over 50 years, indicating to us that equities are due to rise as the current economic environment is by no means the most challenging it has been in 50 years."

John Paulson

John Paulson: Economy Is Recovering And Growing

“In addition to maneuvering our investment strategy based on where we are in the economic cycle, a large part of our success has been based on anticipating market events before they are generally recognized.

We believe the U.S. economy is recovering, and we anticipate continued growth."

John Paulson

Which Super Investors Are Bullish On The Market For 2011?

Based on previous posts on this blog, it appears George Soros, John Paulson, Bruce Berkowitz, David Tepper and Marc Faber are pretty much all bullish (while some are cautiously bullish). Each has his own reasons for being bullish. Some are bullish on the economy while others are bullish because of inflation.

It's very hard to bet against these guys and expect to win.

John Paulson: Double Digit Inflation By 2012, Go Buy A Home

“If you don’t own a home buy one; if you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.

Due to inflation, your debt and interest payments get locked in at record lows, while the price of your home will rise.”

John Paulson