Abhorrence of the extraordinary financial losses that ordinary people suffered in the 2008 crash while hedge fund managers collected fees as usual motivated Paul Mampilly to leave New York and Wall Street behind. He abandoned a career of directing asset management firms with multi-billion dollar funds out of a deeply held conviction that what had happened to small investors’ savings and investments was wrong. He chose to share his expertise in finding profitable stocks with the ordinary investors who had lost so much in the financial crisis on Wall Street.
Taking Advantage of a Financial Crisis to Make Money
Mampilly’s 20 years of experience in Wall Street positioned him in the perfect place to share it with small investors through the Professional Speculator, a subscription service that he started after the crisis. He gained his knowledge through hands-on management of other people’s money and now uses it to advise clients of his firm Capuchin Consulting in Durham, North Carolina.
At the start of the crash, he managed a private account that won a coveted competition sponsored by the John Templeton Foundation by achieving record returns. He took risks that paid off with gains of 76 percent when most people feared the financial collapse that was about to happen, according to Casey Research. From his first-hand observation of investment habits, he found that failure to buy stocks at the right time is the reason that most investors do not make money in the market.
As the Investment Director & Editor of FDA Trader, he generated ideas for Agora Financial that reflect his unique and proprietary method of investing to create excellent returns. As the founder of Capuchin Consulting and the originator of the Extreme Fortunes and Profits Unlimited financial newsletters, he helps ordinary Americans amass wealth by investing in stocks that he tracks and recommends.
Establishing a New Stock Advisory Service
By joining Banyan Hill Publishing recently, he has a platform for Profits Unlimited, an investment advisory newsletter that reaches 60,000 subscribers. Investors control accounts with their brokerages and with Mampilly’s advice but without his active participation in account management. A subscription gets investors an update every week on the performance of the stocks that he tracks in his model portfolio. Some of them are up as much as 38 percent.
Predicting a Tech Revolution
In a lengthy video on the internet, Mampilly speaks to viewers from his North Carolina home about the highly successful stocks that he picked as investments earlier than other investors. An infomercial, it lets him display stock performance on his computer, a technique that he calls “looking over his shoulder.” The increases in stock values appear on his computer screen with dramatic trajectories. His video presentation includes the names of the well-known companies that received multi-thousand percent increases.
While he holds a college degree, he credits learning about his profession through the trial-and-error method. He acknowledges that a degree is probably the reason that he got a job on Wall Street, but investing and reading the more than 1000 books in his library form the basis of his knowledge and extraordinary success.
In a novel approach to boosting enrollment in his subscription service, he offers to let subscribers observe his model portfolio. The promise of revealing the name of a software developer who is a favorite of his keeps viewers attentive until the end. The technology of RFID may exceed anything in previous tech revolutions, including the devices that almost everyone uses daily.
Touching Base with the Publisher
In an interview with the investment director at Banyan Hill, Mampilly explains where he thinks the economy heads next. One trend that he expects to produce significant profits focuses on the preferences of the millennial generation. He bases his expectations on his ability to observe patterns, and he notes that economies boom when a generation reaches maturity. He points to the fact that the cycle occurred on schedule with the baby boomer generation, and one piece of evidence in the stock market is the rise in the value of Home Depot stock.
The second trend that he anticipates developing as soon as 2020 is the Internet of Things in which objects can communicate with each other. He views it from the perspective of examining the progress of the largest technological breakthroughs that include the internet in its current form, the use of tablets and the widespread reliance on cell phones. He expects the next significant change in technology to allow inanimate objects to communicate with each other, opening the door to enormous advances in hardware and software that can enable conversations between cell phones and refrigerators, automobiles and mechanics’ garages and more that only imagination can conceptualize.
Learning about the Man and His Principles
Standing on principle is an uncomfortable place for many people, but it is what Paul Mampilly chooses to do. After making huge profits for the famous and the well-to-do, he left Wall Street to share his exceptional talents in discovering emerging companies with people in regular walks of life. His principles led him to leave Wall Street because of his belief that it does not help enough people.
Satisfying the desires and meeting the goals of the top 1 percent was insufficient for him, and he took major steps to change the direction of his life. By leaving New York and settling in North Carolina, he was able to rediscover the newsletter publishing business that he is in now. To underscore the importance of maintaining the highest principles of integrity, he consistently focuses on finding errors in his judgment and tries to look at situations from different perspectives. His experience on Wall Street as a hedge fund manager and his personal and highly successful investments give him a vast repertoire of knowledge that he chooses to share with clients who respect and appreciate it.