Book Review: "Profits Unlimited: A Wall Street Insider Reveals the Secret to Life-Changing Wealth," by Paul Mampilly
If you are like me, you want to see your money grow. To whom do you turn to get good advice?
Is Paul Mampilly for real? Can you trust him? Would you follow his advice in this book? I subscribed to his "Profits Unlimited" newsletter and bought his book to find out for myself.
Read on and I will give you my overall impression of Paul's book. I will summarize its main points and then conclude with my opinion on whether Paul is for real.
"Profits Unlimited: A Wall Street Insider Reveals the Secret to Life-Changing Wealth," by Paul Mampilly
Paul tells how he came to be a successful Wall Street money manager who left Wall Street with money enough to meet the needs of his family. He said he had had enough of helping rich people make even more money.
He published this book and runs an online subscription service on Banyan Hill Publishing where he presents and regularly updates his ideas and recommendations. Paul says that he is not a financial advisor, but that he simply wants to offer ideas for you to consider in your investments. Now he feels that he is helping Main Street Americans make the most from their investments.
Do Your Due Diligence in All Things Financial
My Overall Impressions of "Profits Unlimited"
The book is not long -- just 174 pages. I read the book in one day. I found it a very easy read. Paul makes his points in clear, uncomplicated language. There are no footnotes. The presentation is unambiguous and easy to follow. Graphs and charts are used sparingly.
This is not a book for a reader looking for hot stock "tips." Most of it contains material that is "evergreen" -- it doesn't get quickly dated. its methods and concepts have a long life. I plan to keep the book as a ready reference.
"Profits Unlimited" is organized in five parts, plus an appendix and a summary of Paul's online subscription services.
Part One: Paul Mampilly's Life Story and Why He Wrote "Profits Unlimited"
Mampilly credits his father as a role model for his success as a risk-taker and striver. He describes his own journey from India to Dubai and then America for education and opportunity, Now equipped with financial and accounting education, he landed a job with Bankers Trust in portfolio management for rich people. He writes about what he learned on Wall Street and the lessons learned from both college and career.
When I was on Wall Street I made money for the 1%, the European aristocracy, Swiss private banks and the Royal Bank of Scotland, my job was to help big banks turn millions into billions.
But I knew that that was not how I wanted to spend the rest of my career. I want to help Main Street Americans turn thousands into hundreds of thousands and enjoy life." Paul Mampilly
I found his story sincere and moving. From rags to riches. And a sincere motivation to help ordinary people. And he echoes my feeling about the need for due diligence in the financial world.
Part Two: Paul Believes We are in a Life-Changing Bull Market!
Look at all the Doom and Gloom headlines you see every day. "The stock market is going to crash!" Or, "Recession is coming soon!" What does Paul Mampilly make of these?
"Markets are driven by emotions," says Paul. Most investors are "emotional investors, to their own detriment. Thy let fear drive them." And Wall Street insiders prey on them.
Paul harks back to John Templeton, the renowned investor who recognized that great bull markets are born of pessimism, born of skepticism, mature on optimism and always end on euphoria."
Paul observes that today there is remarkable skepticism, pessimism, and fear in most headlines. But all his experience, research, and the facts as he sees them tell him just the opposite. We are in a long bull market. He talks about the technological revolution going on now. He talks about the millennial generation affecting our culture and economy much the same way the baby boomers did. He believes that companies that are Innovative and disruptive will thrive going forward.
Paul invented the term "going upness" to describe how he picks those companies.
Part Three: Paul Mampilly's Methods and Rules for Investment Success
Here, Paul goes into detail about his "going upness" approach to stock picking. He begins with some real-life examples based on his experience. Then he breaks his system into two sets of attributes he looks for:
- Set One: The qualities of a stock: InDemandNess, InsiderNess, and BuyNess
- Set Two: The abilities of a stock: ScarceAbility, ValueAbility, and ManageAbility
For each of these attributes, Paul explains in detail what he looks for.
Then he lists the 5 Rules that you should follow to assure investment success.
- Rule 1. Never make an all-in bet on just one stock.
- Rule 2. Equal-weight all the initial positions that you take.
- Rule 3. Build your position over time. Start small.
- Rule 4. Take profits on the way up.
- Rule 5. Keep some cash on the side.
He explains how to apply each of these rules.
Finally, Paul writes about when you should buy and how market-makers influence stock prices. He concludes with practical things you should know about brokerage accounts and the stock market.
Part Four: 7 Explosive Mega Trends Paul has Identified for Investment Success
This is the largest chapter in the book. According to Paul, powerful changes are taking place in technology, innovation, and the American economy. He believes innovative and disruptive public companies are riding each of these Mega Trends. Part Four presents his case in detail for each of the following Mega Trends:
- The Internet of Things
- Robotics and Artificial Intelligence
- Precision Medicine
- The Millennial Generation
- Autonomous Vehicles
- New Energy
Part Five: Strong Hands for Success During Market Volatility
The final chapter is the shortest -- just 5 pages. By devoting a chapter to Strong Hands, Paul stresses how important it is to successful investing. In a bull market, like the one Paul believes we are in now, there will be volatility.
Big money eventually discovers the successful, innovative, disruptive businesses and moves billions of their investments into them. That's when the stock in those companies makes major moves upward. Then market manipulators sell them to move the price down, shake out the "weak hands' and buy them back for a lower price. When big money moves in, those stock prices are bid up to ever higher levels.
Paul Mampilly believes so strongly in the stocks he has recommended that he urges you to have "strong hands" and not sell during periods of volatility. In his subscription newsletter, he advises when he thinks a company's outlook really deserves a sell alert.
My Opinion and Experience with Profits Unlimited
Although Paul benefits from his subscription service, he is not allowed by his publisher, Banyan Hill, to own any of the stocks he recommends. He readily admits he can and has made mistakes and that is why he urges subscribers to follow his rules of the game. I do not believe he is pushing any particular company for his own personal benefit.
As I said at the beginning, I bought Paul's book and joined his subscription service "Profits Unlimited." I followed his recommendations. I log in to "Profits Unlimited" a couple of times each week and follow his updates and advice. As a result, I've made 54 percent on my modest portfolio from January 1, 2018, to February 26, 2020, when this Hub was written -- compared to a gain of 18 percent for the S&P 500 index.
I am very pleased with my investment performance based on "Profits Unlimited."
I have come to trust the honesty and advice of Paul Mampilly.