The $30 Billion Dollar Lesson Matt Badiali Learned from John Paulson

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Visionary investors like John Paulson who succeed in making huge profits become legends, and astute observers like Matt Badiali take note of what they do. If the adage holds true that people can learn only in relation to what they know, then Badiali comes well prepared to understand market movements. Adages often address the importance of seizing an opportunity whenever it appears. With two academic degrees in science, (undergraduate in earth sciences from Penn State and a master’s in geology from Florida Atlantic), he was pursuing a Ph.D. in the same field at the University of North Carolina when he got a recommendation that changed the course of his life.

A friend suggested to him that the promise of his future lay in making his knowledge of geology the foundation of a career in finance instead. Investors who subscribe to his Real Wealth Strategist newsletter at Banyan Hill Publishing Company can profit from his extensive knowledge of the natural resources market.

Understanding the Signs of Trends

The ability to detect market trends helped Paulson make $15 billion in 2007 alone. He had seen the market crash coming and the indicators of a bubble in the credit market as well. His market awareness allowed him to connect the meaningful pieces of information when others breezed right past them. Paulson recognized the sharp rise in real estate values and the willingness of banks to lend incredible amounts to high-risk borrowers as signs of trouble in the road ahead. His decision to put a lot of his gain into gold in 2010 resulted in huge losses over the next eight years. Matt Badiali understands what happened and puts it in perspective for his readers. The trend that Badiali sees for the coming year focuses on a comeback in gold.

For investors looking for a chance to enter the market, he thinks that they may consider this trend as a good sign. Investors who do not own gold stocks may take his advice to buy them. Badiali cautions investors to understand that natural resource markets have two characteristics that require understanding: a cyclical pattern and a speculative nature. Investors must know the financial aspects of investing in natural resources as well as the science that supports getting them out of the earth and into the market.

Providing a View with Perspective

From his position as editor of Real Wealth Strategist at Banyan Hill Publishing, Matt Badiali has a vantage point that lets him view the resources market from a unique perspective. His practical approach to investing and advising investors relies on hands-on research. Badiali knows his way around the world, the mining industry and the financial markets. His hands-on experience as a drilling company geologist before joining Banyan Hill Press confirmed his opinion that observation of practices can provide a realistic assessment of progress. An unskilled crew takes longer to drill a hole than a practiced one, and the drilling process accounts for the largest expense that companies face.

With his knowledge of geology and his drive to uncover profitable investment opportunities, Matt Badiali searches the globe to find recommendations for his newsletter subscribers. His finds can give speculators a chance to make up to “quadruple-digit gains in months.” A driving force in the investment advice industry, he spares no effort to get the information that his readers need.

Badiali’s view of the potential for gold to make a comeback in 2019 agrees with other experts in the field. Seeking Alpha compares gains in February 2019 to September 2017. Investing.com recalls the prediction in January of a lower price over the next 45 or so days. As the price weakness in gold has started to occur, it tends to confirm the analysis that may continue over the next 14-28 days. In his review of John Paul’s “massive $30 billion mistake,” Matt Badiali explains what went wrong. He maintains that Paulson’s experience in the gold market proves the error of buying and holding gold or any natural resource “late in the cycle.” A key to successful investing requires the ability to cut the losses when trends go in the opposite direction.

Involving Investors on a Personal Level

Badiali understands the unique nature of his position as the founder of investor newsletters that give him the opportunity to travel the world while most of his readers cannot. To make sure that they can accompany him virtually if not physically, he devises ways to bring them along by writing about his actual experiences. His worldwide travels have taken him to the far reaches of the earth from Peru to Switzerland and from Papua New Guinea to Turkey. In between, he has visited Hong Kong and Singapore, Iraq and Haiti. In describing investment opportunities in faraway places, he draws on his travel experiences to make his writing reflect the authenticity of his adventures abroad.

Building a Knowledge Database

An avid reader who starts his day by checking the Mining Journal, Bloomberg, the Wall Street Journal and news from all sources throughout the day, he encourages everyone to read. He “burns through” things he reads as he gathers information to put together his ideas for his newsletters. The mornings provide productive hours for writing, and he enjoys reading in the gym while he works out. The Bloomberg Terminal gives him “tons of data” at his fingertips, a great time saver for a man who always has another idea to investigate and another project site to visit. Productivity comes easily to him through a habit that he developed through focus and concentration. He can “block out distractions” and produce as many as four written pages in one session. On road trips with his family, he shares his diverse interests with them through mutual interests in discovery, invention and investigation in books such as “The Disappearing Spoon.”

The importance of building a database of knowledge about geology, the earth’s formations and deposits of natural resources became clear to Badiali when he worked at a basic level of geology without training. The experience required him to take soil samples from an area in Miami that had highly objectionable qualities. He was quick to realize that education offered a path to the opportunities that he wanted to pursue. Highly motivated by the prospect of spending days doing a menial job that no one else wanted to do, he embarked on a long-term span of years as a student at increasingly difficult levels of academia.

Standing on Solid Experience and Qualifications

An expert in the energy, mining and agricultural industries, Matt Badiali has prepared for his career as a geological investment adviser. For more than two decades, he has studied the earth’s deposits as an undergraduate student, a graduate, a doctoral candidate and an investment adviser. He maintains that anyone can see the information that seems obvious to him, but he understands that his training and experience give him a depth of knowledge that most others do not have.

In abandoned mines, on drill rigs, in visits to natural resource regions around the world and in his ownership of oil wells, his observations remain consistent. Investors must see for themselves, or they can rely on his extensive knowledge and his newsletters to find what they need to know. Natural resource and commodity investing has become second nature to him, and his expertise can help investors acquire familiarity with it as well. Not boastful about his accomplishments, the industry leaders and financial analysts who consult with him, the presentations he has made or the college classes he has taught, he admits that he “wrote the book” on resource investing. His motivation to investigate the earth’s bounty and develop access to profits for investors continues to produce valuable guidance for his subscribers.

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