John Paulson Quotes

Stock price multiples are negatively correlated with real interest rates. As interest rates rise, the market multiple will fall.

When 40 billion of treasury bills are sold like, seven day treasury bills, at a yield of 1/20th of one percent, that means the whole country is basically at the point virtually, or a lot of the country is at the point of putting the money under the mattress.

You're looking for a mispriced gamble. That's what investing is. And you have to know enough to know whether the gamble is mispriced. That's value investing.

Wall Street. - The abode of the Brokers and the Broke.

The strength in gold is revealing the general weakness in the dollar.

Nobody really understands gold prices and I don't pretend to understand them either.

Asset values and earning power are the dominant factors affecting the valuation of a controlling interest in a business. Market price, which governs valuation of minority interest positions, is of little or no importance in valuing a controlling interest.

If you knew what was going to happen in the economy, you still wouldn't necessarily know what was going to happen in the stock market.

Focus on return on equity, not earnings per share.

It's the economy, stupid.

Allowing short selling is allowing people to sell - instead of having to buy the stock and then sell it, which doesn't do much; allow them to sell it, and then buy it. In which case they can express that information and the idea is that you would get more accurate valuation of companies by letting people express both their positive information and their negative information through either long or short selling.

How do you measure whether or not a strategy of economic growth that is articulated by a very smart, capable economist actually yields growth? You can't. But you can influence.

Do you have any idea how cheap stocks are? Wall Street is now being called Wall Mart Street

It's quite clear that stocks are cheaper than bonds. I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified group of equities. But people do because they, the lack of confidence. But that's what makes for the attractive prices. If they had their confidence back, they wouldn't be selling at these prices. And believe me, it will come back over time.

The only thing that looks good is the stock market, but if you raise interest rates even a little bit, that's going to come crashing down.

What's fascinating . . .is that you could now have a business that might have been selling for $10 billion where the business itself could probably not have borrowed even $100 million. But the owners of that business, because its public, could borrow many billions of dollars on their little pieces of paper- because they had these market valuations. But as a private business, the company itself couldn't borrow even 1/20th of what the individuals could borrow.

If you don’t feel comfortable making a rough estimate of the asset’s future earnings, just forget it and move on. No one has the ability to evaluate every investment possibility. But omniscience isn’t necessary; you only need to understand the actions you undertake.

The U.S. Treasury has got borrowing costs like nobody else has.

He really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend.

I think you can directly link chihuahuas to Dow Jones.

The borrowers of America and all the world turn to New York....It is to the quotations on the New York Stock Exchange that men of affairs from Penobscot to Honolulu turn each morning to find how beats the pulse of prosperity and enterprise.

You never see the stock called Happiness quoted on the exchange.

Knowledge is only one ingredient on arriving at a stock's proper price. The other ingredient, fully as important as information, is sound judgment.

The stock market is but a mirror which provides an image of the underlying or fundamental economic situation. Cause and effect run from the economy to the stock market, never the reverse. In 1929 the economy was headed for trouble. Eventually that trouble was violently reflected in Wall Street.

Silicon Valley is way more correlated with Nasdaq than anyone admits.