To understand the genius of this move:
Most hedge funds were buying mortgage-backed securities, expecting endless growth.
But Paulson? He had other plans.
He wasn’t just predicting the crash—he found a way to profit from it before anyone else.
Then, it happened.
The housing bubble burst.
Banks collapsed. The stock market plunged 60%.
People lost jobs, homes, and fortunes.
And Paulson? His firm made $15 billion in 2007 alone.
He personally pocketed $4 billion—the biggest payday in history.
While the world was in chaos, Paulson’s bet kept paying off.
Over the next few years, his firm made another $5 billion,
with Paulson taking home another $2 billion.
In total, he walked away with $6 billion+—all from understanding markets better than anyone else.
Today, he’s worth $3.8 billion, and Paulson & Co. still manages $1.35 billion.
His story isn’t just about luck.
