Every retail investor wants to ensure a solid portfolio return. The only question is, how? The stock market produces a vast mine of data, that by its nature forms a barrier to access.
Some investors take a path of low resistance, and follow one or more market legends. These legends are the giants of the investing world, people like John Paulson.
Paulson got his start in hedge management in 1994 with $2 million worth of initial capital. He was successful, and by 2003 he was managing $300 million in total assets. It was in 2007 that Paulson broke the mold. That year, he anticipated the coming crisis in subprime mortgages, invested in credit default swaps to take advantage of it, and, in what some describe as history’s single greatest trade, he made a personal fortune of $4 billion.
When asked about his advice for investors, Paulson has said, “The important thing in investing is to be true to your compass.” Elaborating, he adds, “The stock market goes up or down, and you can't adjust your portfolio based on the whims of the market, so you have to have a strategy in a position and stay true to that strategy and not pay attention to noise that could surround any particular investment.”
In recent months, Paulson’s family firm has made two major moves, suggesting that his compass is pointing at high-yield dividend stocks. According to TipRanks' database, these Buy-rated equities feature dividend yields of 5% to 6%, and upside potentials of at least 25%. Let’s find out what else makes them compelling choices.
