When Paul Mampilly speaks about a new company or new trend on the market, people listen intently because he’ll usually say whether investing in it is good or bad, and more often than not he ends up being right. Mampilly is a former bank and hedge fund portfolio manager who now writes newsletters and blogs for Banyan Hill, a financial advice website. He’s given his analysis on stocks from all industries and one of his latest investment targets was Bitcoins.
Mampilly said that had he taken a closer look a couple years ago when Bitcoin had started to take off, he would have recommended his followers capitalize on those stocks at the time with the cryptocurrency surged. But right now he’s saying investors probably should stay away from Bitcoin because it’s on a bubble that appears to be about to burst. The way he explained it was that if a certain investment becomes too popular, usually the stock prices end up going higher than where their original peak levels would have been, but once that bubble ends up growing too big, it’s going to burst. Mampilly sees what’s happening with Bitcoin now as similar to what happened in 1999 with the DotCom crash and later in 2008 with the subprime mortgage crisis.
Bitcoin is up an astonishing 1,172% in the last 12 months, hitting a high of more than $11,000.
— Paul Mampilly (@Paul_M_Guru) November 30, 2017
Mampilly actually made several predictions about where the stock market was headed including the 2008 crisis and also was an early buyer in Facebook and Netflix. He is originally from Dubai where his family moved to when his father needed a better paying job, though his family history is Indian in origin. Mampilly got his bachelor’s in finance and accounting from Montclair State University and his professional career began as a research assistant for Deutsche Bank. Mampilly started growing client portfolios at a steady rate with his knowledge that he was hired by several other big banks including ING, Banker’s Trust and the Royal Bank of Scotland.
Paul Mampilly was featured in Barron’s at one point when he became a managing director at Kinetics International Fund and found investments for client funds that yielded over 40% in annual returns, and also raised the AUM from $6 billion to $25 billion. He was also the winner of the 2008-2009 Templeton Foundation competition. He started writing independent newsletters because he was dissatisfied with only giving advice to the wealthy investors, so he retired from the hedge fund business and took up independent advising so that middle class investors could take complete charge of their investments.