Chris Camillo is an investor worth listening to. He is the founder of Dumb Money and, having led and founded a series of successful tech and software companies, can boast having turned $20,000 into $30m and counting.
Alongside his friends Dave Hanson and Jordan Mclain, Camillo gave up the rat race to invest and in the process developed a highlight successful strategy called social arbitrage. In this week’s episode of Opto Sessions, Camillo explains the details of this intricate strategy in more detail. Here, Camillo answered our quickfire questions.
What’s the top mistake investors make?
Getting caught up in market noise, watching financial news and letting that noise impact your investments
What’s your favourite stock at the moment?
I really do love Peloton. It sounds a little cheesy, but I think it can be the Apple of connected fitness, the Lululemon of connected fitness. Looking ahead 10, 20, 30 years, I think we will think about fitness the same way as we think about having big TVs in our house — it's just something that everybody does.
“Looking ahead 10, 20, 30 years, I think we will think about fitness the same way as we think about having big TVs in our house — it's just something that everybody does”
What’s the most memorable moment from your career to date?
A few years ago Wall Street said Netflix was going to miss earnings. We put out a report that essentially said no, we think they might have one of the best earnings quarters ever because of a show called Stranger Things. We looked at social data and identified that there had never been a show in the history of Netflix that had driven as much social conversation. One thing we knew about Netflix was that when people talk about a show people subscribe. Sure enough, the stock was up 20% on earnings that day — Wall Street was completely shocked.
What’s your top tip for your younger self?
Go bigger. Go even bigger on my highest conviction trades.
“Go bigger. Go even bigger on my highest conviction trade”
What is your biggest source of alpha?
Just observing the world's conversations. With social conversations, there are a lot of ways to interpret the data. Everyone could be looking at the same data as me, but I can gain an edge, because I'm the best interpreting that data to identify an anomaly, or a true change in the way people are speaking about a subject, brand or a company's products. That's where I find the most alpha.
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