Paul Mampilly is a Wall Street legend who walked away from managing billions of dollars for hedge funds so he could advise ordinary investors who need to turn thousands of dollars into hundreds of thousands of dollars. He knows how professional money managers evaluate stocks and other investors. After graduating from Fordham University with a Masters in Business Administration, he started his career in 1991 as an analyst for Bankers Trust. He rapidly moved on to manage money for Deutsche Bank, ING and the Royal Bank of Scotland. Then Kinetics Asset Management hired him to manage their hedge fund. He grew its assets under management from $6 billion to $25 billion. BARRON’S MAGAZINE said it was one of the best hedge funds in the world. And he won a prestigious investing contest held by the John Templeton Foundation. In the two worst investing years since the Great Depression, 2008-2009, he turned $50 million into $78 million, and accomplished this feat without shorting stocks, even though almost everything went down during that period.
Therefore, when Paul Mampilly writes a blog article explaining how professional stock market evaluation techniques such as cyclically adjusted price to earnings (CAPE) are not as relevant as most experts think, that’s worth paying attention to. His record proves he knows how to evaluate stocks better than most of these experts.
According to Paul Mampilly, CAPE is too backward-looking. The stock market, professionals and ordinary investors alike, invest based on their expectations of the future, not on a stock’s past performance. That’s why he prefers to invest based on megatrends. These are changes sweeping through the economy, but which most people don’t perceive until it’s too late for them to profit from. To see more, visit here.
He identifies those megatrends, and then looks for the companies which are in position to profit from them. One of the megatrends Paul Mampilly is now looking at is the Internet of Things. Technology experts believe the Internet of Things will have at least 50 billion sensors hooked up to things by 2020. And related to the Internet of Things is artificial intelligence, robotics and Big Data. Most people barely comprehend them, yet they are already raising economic productivity. The economy went up 3% just in the third quarter of 2017. That’s the largest leap in years. He has found one company that is going to profit enormously from the trend, and he names it to subscribers of his Profits Unlimited newsletter from Banyan Hill Publishing.
Paul Mampilly @ Facebook.