Who is Paul Mampilly?
We’ve been getting that question a lot lately,
Paul is our resident technology expert and the editor of our popular Profits Unlimited research service. After spending 20 years on Wall Street, Paul began writing his research down for Main Street Americans to benefit, using his experience to shed light on explosive investment trends that anyone can participate in.
Paul joined our team in 2016. Already, he has over 40,000 subscribers who look to his investment advice every month. So far, he’s helped them generate winning trades as high as 20%, 45% and even 116% – without buying options or making risky bets. His readers have written in to say they’ve made $5,000, $6,000, $23,000, $26,000 and even $45,190 based on his recommendations, all in a matter of months.
So, our editorial director, JL Yastine, decided to sit down with Paul to see just what is driving his investment success.
JL: Hi, Paul, thanks for meeting with me.
Paul: It’s my pleasure, JL.
JL: Before we get too far into the weeds of your investing methods, let’s talk a little bit about you first. How did you get your start on Wall Street?
Paul: Certainly. As you know, I grew up in India, and when I was 18, I came to the United States to go to college. Shortly after I graduated, I got my start at Bankers Trust as an account administrator. Eventually I became one of their money managers, managing multimillion-dollar accounts. Then I was senior research analyst for ING for a little while before I joined Kinetics Asset Management to become their senior portfolio manager, managing what eventually grew into a $25 billion account.
JL: That’s billion with a “b.” You worked on Wall Street for several years then. What prompted you to quit and get into the writing business?
Paul: It was over 20 years actually. It was a fun ride, but after a while you just get tired of the long hours, sometimes 18-hour days, and eventually you reach a point where, you know what, I’ve been doing this long enough that I don’t have to work as many hours to make a living. I always thought it would be interesting to find a way to help regular people make money – business owners, retirees, doctors, teachers. Because on Wall Street you’re just surrounded by wealthy clients. So I thought it would be fun to flip the switch.
JL: A few moths ago, you released a video on the “Internet of Things” with some pretty bold claims in it. Already over 1 million people have seen this video. What exactly is the Internet of Things, and how does it work?
Paul: Understand that when we talk about the Internet, we refer to this massive entity that connects everybody across the whole world to each other. The Internet of Things is not going to connect people, but all the things that they own and use. Roads, pipes, houses, windows, cars, streetlights, clothing, medical devices, big machines in factories, robots – every single thing you can imagine is going to be connected to the Internet. That’s enormous reach and truly unlimited profit potential.
JL: In that video, you said that investors could pocket 8,000% gains over the next four years. Is this not too good to be true?
Paul: No. The Internet of Things is going to be huge. I think it will be a bigger investment than the Internet itself. It’s a monster mega trend that will span everything from self-driving cars and robotics to Big Data to artificial intelligence to 3-D printing. We’re talking about billions of devices being connected and “talking” to each other.
JL: When you say “monster mega trend,” just how big are we talking?
Paul: I honestly think it will be the biggest tech trend of our lifetime. To put it this way, Cisco Systems, which is the world’s biggest networking company, estimates that the total impact of IoT will be $19 trillion. Ericsson, the telecommunications equipment company, believes there will be 50 billion connected devices worldwide by 2020 from just a few billion right now. That’s explosive potential.
But to your other point – whether or not it’s “too good to be true” – I don’t blame people for being skeptical. I welcome skepticism! If someone approached me saying they had the golden ticket for retirement, I’d probably thin they were a snake oil salesman. I’d at least want to do the research myself. But people tend to be fearful of things they don’t understand.
JL: Plenty of people are still reeling from the financial crisis and just don’t have the stomach for risk anymore.
Paul: You’re absolutely right. However, they need to understand that this tech revolution is happening now, and if they don’t act on it, they’re going to miss it. And that brings up a really important point. We’re not hearing a lot about the Internet of Things right now. Pretty soon, it’s going to be ALL we hear about. The Internet of Things will become a household phrase. By that point, it’ll be too late, and most investors will have already gotten in.
JL: What sort of profit potential are we talking about, exactly?
Paul: People who get in early will be able to make 500% to 1,000% gains easily.
JL: You’re joking.
Paul: I’m not. It’s still early in the trend, so those kinds of gains aren’t just possible – they’re inevitable. A year from now, I’m certain investors will already be sitting on several triple-digit winners. I’ve already directed my readers into a stock that’s up nearly 150%.
JL: That’s an impressive win. But there’s certainly some risk involved, wouldn’t you say?
Paul: There’s always risk in investing. But there’s simply no better way to multiply your wealth several times than investing in the stock market. I read somewhere that if Donald Trump had put all his money into the stock market in the early ’80s, he would have been better off than he ended up by sticking with the real estate business.
JL: So what do you do to manage risk?
Paul: That’s a great question. You want to decide early on how much risk you’re willing to take. That’s why anytime you place a buy order on a stock, I recommend placing a stop-loss 8% to 12% below your buy price. But I think we’ll make much more than that. I think we’ll find several 100%, 300%, even 1,000% winners with this method.
JL: Now, to be clear, do you intent to find those winners using options? What exactly is your method?
Paul: I don’t mess with options. Some of my colleagues use them, and that’s fine, but I prefer just to buy stocks. The reason is simple. When you’re buying options, you’re betting the stock will go up over a short period of time, maybe three months. When I find a stock I want to invest in, I want to invest in it over a period of years. Otherwise you end up missing out on some incredible price action. The truth is, it can take years for a stock to fully mature into a 1,000% winner. I’d rather grow my money 10 times on a sure things than make a fraction of that on a guess.
JL: Paul, what do you have to gain by sharing this information? Couldn’t you just keep it to yourself and invest in these stocks yourself?
Paul: I think you could ask Jim Cramer the same question. Why does anybody write ab out the market? Why educated the public about investing? It’s because there’s a market for it. People want to know how to invest successfully, but they don’t have time to do all the legwork. It’s fun for me. I get to write about what I love and do what I love, and I have tons of people write in telling me they’re up 10%, 50%, 100%, that they’ve made X amount of dollars, tend and even hundreds of thousands of dollars. That’s a good feeling. And besides, after a while, you get tired of doing the same old thing. It’s no fun sitting behind a computer all day researching stocks and not sharing what you’ve learned with anybody.
JL: Do you buy any of the stocks you recommend to your readers? I think one of the concerns that people have is, are you not just peddling stock advice to dupe people into buying into shares you own so the share prices will go up?
Paul: JL, thank you for asking that question. Absolutely not. We actually have very strict legal and editorial guidelines in this industry, and that’s the No. 1 think you cannot do as an investment writer. I’m actually not allowed to purchase any shares of the stocks I recommend. People might think that means I don’t have any skin in the game, but that isn’t true. My business is my readers. I want them to be successful and make money. Otherwise, they wouldn’t buy my newsletter. If they’re successful, I’m successful. But I’m not allowed to buy the stocks I recommend. It would be a conflict of interest. Frankly, it would just be dishonest.
JL: One last question for you, Paul. The Dow Jones Industrial Average just hit a major landmark by crossing 20,000. What do you think is the next step? Are we in for some profit-taking? Or worse, a correction or even a depression like some analysts are calling for?
Paul: I think the Dow’s going to hit 50,000 sometime i the next decade.
Paul: Yes. I think it could even rocket to 100,000.
JL: You do realize how that sounds?
Paul: Completely nuts? *laughs* I do. But I’m completely serious.
JL: What do you base this claim on?
Paul: If you ask most people when the last major bull market started, they’ll probably tell you in 2009 at the end of the financial crisis, right? They’re wrong. The last major bull market started in 1982. It didn’t end until the tech bubble burst in 2000. Stocks went up to 1,426% during that period. Since then? Stocks are up just 50%. Over a period of 17 years. That’s pathetic. We’ve been in a never-ending bear market this whole time. Now, we’re beginning to see the start of another generational bull market.
JL: What similarities do you see between now and 1982 that helped you reach that conclusion?
Paul: This actually gets at my two major investment trends, which are the Internet of Things, as we’ve already discussed, and the millennial generation. First, there was an incredible technology – the personal computer – that was just the beginning to emerge as an enormous economic force. Second, the baby-boom generation, which was the largest generation at the time, was just starting to come of age. So you had incredible innovation in technology and the spending power to drive our economy and stock market higher. The same thing is happening today, only we have what I think will be an even bigger technological innovation in the Internet of Things. This time the generation is bigger too. The millennials are the biggest generation in history. It’s 92 million just in this country alone. And they’re just now starting to come of age. So I have no doubt the stock market is going to rocket higher with these two trends.
JL: Paul, thanks for talking with me.
Paul: My pleasure, JL.