Paul Mampilly: Financial Genius

Who Is Paul Mampilly?

Paul Mampilly is an MBA graduate from Fordham University. Paul Mampilly has a proven record of success on Wall Street. With the possible exception of mailroom clerk, he has held just about every position imaginable as a financial analyst. He grew the hedge fund at Kinetics Asset Management to $25 billion with 26 percent average annual returns, one of the most substantial on record according to Barron’s.

Paul Mampilly’s Move from Wall Street to Main Street

He soon tired of the hustle and bustle of Wall Street making money for the elite, already rich investors. He longed to spend more time with his family and to help the average person on Main Street. He still does the research and makes investment recommendations but for 90,000 mostly regular investors through Banyan Hill Publishing.

Mampilly offers a new recommendation to his followers each month in an eight-page monthly newsletter, Profits Unlimited. You can also follow or message him on Stock Twits, a social network of more than one million investors.

Paul Mampilly also administers two trading services, True Momentum and Extreme Fortunes, besides writing a weekly column for the Winning Investor Daily, an arm of Banyan Hill with an email subscription of 400,000 readers and is available on Facebook. All while helping what he calls “do it yourself investors” make money in the stock market.

The Biggest Change in Investing Over the Last 20 Years

Paul Mampilly claims the most significant change to investing that he has seen is the number of people using computers, algorithms, and artificial intelligence. These “trading robots” disadvantage the average DIY investor. He says before “Exchange Traded Funds” (EFTs) you might be able to study a fund manager and pick up something about how they trade and perhaps pick up some of the same stocks they would buy and promote. With algorithms and ETFs, they might buy hundreds of stocks, how can the average trader get a leg up on that type of volume?

Another problem, to Paul’s thinking, is the method of valuing companies. It used to be the Price to Earnings (PE) ratio was a good indicator, but If you look at Amazon and Tesla, they grew so rapidly without having those big earnings until just recently.

IPO Shared Recommendation: Spotify

Paul shared his recommendation for the recent Initial Public Offering (IPO) of Spotify. He states that the IPO was different than most public offering in that they weren’t doing it to raise money, so they didn’t pay the vast Wall Street fees that most would and for another reason because of its liquidity. It makes money from subscriptions (music) and pays its expenses monthly so that its earning versus expenses are predictable. Its also an artificial intelligence (AI) play because of how they learn what music we will buy.

Common Mistakes DIY Investors Make

He says the most common mistakes stock investors make is going all-in on one stock, or even when they buy five or ten stocks, they spend large amounts of money on the one they feel really good about, which you should look at the fundamentals.

His Favorite Entrepreneur: Elon Musk

When asked who his favorite entrepreneur was, he pointed to Elon Musk, saying “…he has the guts to start the kind of companies that he has started.” Like with Tesla, electric cars were not even a marketable product when he started, and “…in terms of the array of businesses he’s creating…””…he’s my favorite entrepreneur by far.”

When you look at his meteoric rise on Wall Street and his investment in the average DIY investor on Main Street you have no choice but to admire him.


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