How John Paulson Became a Billionaire With One Trade

The transcript discusses John Paulson's significant financial success in 2007, where his bet on the collapse of subprime mortgages earned his firm $15 billion, marking the largest one-year payout in financial history. This success elevated him to a top-tier manager, with his firm managing $38 billion at its peak. Despite this, Paulson has not replicated such success and has since transitioned his hedge fund into a family office. He expresses a preference for investing over business operations and has made substantial philanthropic contributions, including $400 million to Harvard University and $100 million to the Central Park Conservancy.

What was the outcome of Paulson's bet on the collapse of subprime mortgages in 2007?

• It earned his firm $15 billion.

• It resulted in a loss for his firm.

• It led to the closure of his firm.

• It had no significant impact.

How did Paulson's firm rank at its peak in terms of size?

• It was the largest hedge fund in Europe.

• It was a small hedge fund.

• It was one of the largest hedge funds in the world.

• It was the smallest hedge fund in the US.

What significant change did Paulson make to his business recently?

• He started a new hedge fund.

• He sold his firm to a competitor.

• He converted his fund into a family office.

• He expanded his hedge fund.

Which university did Paulson pledge $400 million to?

• Yale University

• Harvard University

• Stanford University

• Princeton University

What was one of Paulson's motivations for his philanthropic efforts?

• To give back to institutions important to him.

• To gain more business connections.

• To avoid taxes.

• To increase his firm's profits.