How John Paulson Learned Risk Arbitrage From Candy

Paulson's story is one of dedication, drive, and heart. He is a natural risk-taker, but is very good at weighing the risk/return of any situation. He was able to judge demand for Charms candies in kindergarten and was able to judge the risk/reward of shorting the US housing market through CDS in 2007 and then the risk/reward of buying financials at the depths in 2009.

As he says in the book, "I liked buying and selling. I would take the profits I made and put them in a piggy bank - that was what I called the 'bank.' Eventually, I filled up the bank and that's what I thought banking was. So at a very young age, I wanted to be a banker." Paulson is a classic example of doing what you like and following your passions, no matter where they take you.