Money Expert: The GREATEST Wealth Transfer Just Started (Don’t Miss Out!) | Chris Camillo

the market is rigged in our advantage because we can see the world changing in a way that people that work on Wall Street just can't 70 record closing high so far for the it's not about being really smart it's about being smart in a totally different way than others Market has gained almost $3 trillion in value since the election big changes that are happening quickly are the biggest opportunities for investors but they don't happen very often and occasionally there's one that comes around once in a lifetime and this is it for me this is the biggest tra of my life I firmly believe that the embodiment of artificial intelligence is going to radically rebuild our world and change our economy unlike we've ever seen in our lifetime think about what it's like to have access to infinite physical labor what would we build how would that change our world there's nothing more important than being part of the investor class it's not a question you better darn start investing right now you better go get a Robin Hood account or get whatever right just start doing it I promise you Chris thank you so much for coming on the ice coffee hour really appreciate it yeah been wanting to do it for a while so question number one why do so many investors lose money maybe since the pandemic this new generation of investors that are all about foming and weird crypto meme coins and meme stocks and you have like these new asset classes that are super risky options right so like I think if you remove that from like from the investment class I think if you remove those things it's very hard to lose money I guess what we're seeing on our end is a lot of people making these speculative trades where they're going in and buying something because it's hyped up they're buying at the peak and then it drops you're like ah crap I got the wrong one sell lock and a loss move on to the next one probably either one really young or or relatively new to investing okay okay they're going to go through that period and it's going to be a costly short period of their life months to a few years they're going to learn those lessons sometimes like you can read all the books and you could listen to us talking about what not to do but you just have to go through it yourself right and I think every investor has to go through a period of making critical mistakes because everyone wants fast money I get that that's the answer to your question they're chasing fast money what does your portfolio look like today dude my portfolio is wild today but but it's not normal this is not a normal period for me sure and you know you follow me a little bit so you know that you know every decade or so there's like a generational opportunity if the change is happening really quickly then there's even a bigger opportunity so big changes that are happening quickly are the biggest opportunities for investors but they don't happen very often so you go back late '90s after I graduated college you know the.com boom that was one of those times right and the birth of the smart phone that was one of those times you know cloud computing another one of those times um and certainly there's you know I just turned 50 guys like like a couple months ago and I never thought I would see in my lifetime this much change that is this big like as Humanity this quickly it's freaking wild to me actually during the pandemic when covid hit that was my biggest year you know everyone knows that because it was the biggest change that had ever happened to our civilization in during our lifetimes right when you take every human on earth and they start not leaving their home that changes the things that they buy changes the things that they do with their money the things that they care about which changes the profits for every company on earth right and that was a huge opportunity to monetize I didn't think I'd ever see that again this is bigger you know the age of artificial intelligence the age of robots this is freaking wild so is this a way to say that your portfolio is skewed heavily towards what you believe is a once in decade opportunity yeah maybe once in a lifetime at this point yeah and so like I'm really putting myself out there like dude I I went all in when when chat PT first came out do you remember do you remember the first time you got on chat chpt when was it two years ago year ago give or take I I got on chat GPT and and I do this and I I remember this cuz I remember the first time I held an iPhone in my hand yeah I remember exactly where I was and it wasn't mine um we're passing it around uh at a pool party and it was was like the week the iPhone came out and I spent like 5 minutes on it and I was like oh this is this is something this is something and I made the most levered investment of my life in Apple at the time and it paid off obviously um and when I got on chat GPT for the first time I was like dude this is this is this is something real and I'll never forget it cuz Dave was out of town and Jordan wasn't I was like Jordan I don't know how to get the YouTube show up cuz Dave does all that stuff right so uh I was like I don't know how to get dumb money up and and I was like but I can get a Twitter spaces up we got to get one up today I just got to talk to people who've been on this I just got I got to go I got to start evaluating opportunities and so we got on a Twitter spaces and I think it went on for like two and a half hours and we were just openly talking to people that were using chat GPT and just basically going through like a creative session of who who would win from this who would lose from this like I was like I didn't know how much time we had before the rest of the market figured this out it could be a day a week a month but I had to figure it out quick because if there were a couple companies that were obvious beneficiaries and I could detect those companies before anyone else that could be a life-changing thing so we had that we had that Twitter spaces and it was awesome like I had people that were using it um at call centers and I had a guy who's like hey I've been in call centers for 20 years we started started using it a couple weeks ago GameChanger it's going to take over everything our entire industry is going to collapse and and like get taken over by these automated kind of AI answer Bots and so we just kind of brainstormed and I ultimately made a decision and I did an episode on this on Dum money I was like Nvidia it's the only thing I could think of for sure I just said this is it I'm going all in Nvidia that was like January 23 what do you me what do you mean by Allin yeah so when I all in like a big part of my portfolio was in on in on video now I didn't leverage that much and the reason why I didn't go in levered is because I was unsure the degree to which the rest of the market would like pick up on that over a known period of time so when I'm trading an option options have you know windows and something has to happen within that wind time period so you could be right but if the rest of the world doesn't kind of come to terms with that thing that you found and agree with you within that short window of time then it doesn't really matter so my regret is you know I didn't go in levered I just went in really I went in really that's your regret is you you don't know me man I I I I will put like I've talked about this like like right now like dude if you would have seen my account the last week you wouldn't even believe it it's just outrageous yeah I mean I've been heavily levered in Tesla for the last month heavily like ridiculously irresponsibly love what what is but okay I'm I'm curious though like when I hear that I think that could be anywhere from like 15% of your net worth to it could be like are we talking like 10 million plus so I have a liquid trading account most of my assets are tied up in privates right so I'm invested in like over a 100 private companies and startups I also have operating businesses that I'm invested in but and then any excess returns I get I basically donate to my Foundation I have a foundation that benefits you know pediatric cancer autism leukemia and Animal Welfare and that's another big part of my life I'm trying to grow that into a billion dollar foundation so I put millions of dollars into that Foundation when I have a good year but my liquid trading account like is not that I mean for it's a low it could be a high seven figureure to low eight figureure account in any moment in time right and so I've had like 20% of the account in options that would go to zero the next day if it didn't go my way so we're talking about millions of dollars in options that could go to zero in one day um and it start out as like 300,000 in options but then it's two million two days later you know so it's wild to see your account going up like that how did you make your money could you take us back to the beginning like how you even got started doing something like this oh sorry yeah so I I mean I've been investing since I was like 13 years old I was like a nerdy uh Finance kid that before that existed now it's common like now kids do this this is like cool to be a financial Hustler as a kid not in the 80s man not in the 80s and not in the 90s when I grew up I was the only one I was literally the only one I I tell stories about I I would hang out like kids now hang out in like Boards of like amongst people that have like interest um that was my like interest was investing and there were web boards like Yahoo web boards in the early early early days of Yahoo web boards for finance and you would post a message and I'd just sit there all night and wait for someone to respond and post another message could you imagine I used to do that on you know what it's like on like stop twits now or TW or or X when you put a message on Tesla and there's like 10 I would literally post a message with like my thesis I'd be like here's my thesis you know on the stock and I just wait wait the next morning I would wake up and the first thing I would do is pull up that message board go oh man two people commented on my thesis dude this is huge that's how hard it was to be like in a retail investor a self-directed investor we didn't exist um but I was investing since I was 13 and that's how I developed this whole concept what I call social ARB investing right which is I wrote a book about it in 200 I don't 10 called laughing at Wall Street but it's all about detecting change in the world and then connecting dots between that change and the companies that would benefit or be harmed by that change you want to surface the change quicker than others and then you want to connect the dots to the benefiting companies really quickly and there there are are more elements to it than that you have to make sure that the rest of the world doesn't already know about that thing that you discovered uh when I say the rest of the world I mean Wall Street and other retail investors you want to make sure that there's nothing else happening at that company that could be more impactful than the piece of information that you think is going to impact that company positively or negatively um you also want to make sure that that information that you think is going to impact that company is actually meaningful it's a needle mover right so I always tell like the same stories because they're super relatable um stories like you know 10 years ago when kids started playing with DIY Slime they would make slime in their house right and that became a really popular Trend and I was able to surface that Trend pretty quickly when it was happening and so I was like oh this is big like every kid in the world is making slime with their moms and in their house and playing with it well like how do you make this stuff oh the primary ingredient is Elmer's Glue that's interesting um so who makes Elmer's Glue new old Brands oh they're public oh that's interesting oh this is a stodgy old company that grows at like 2 and a half% a year and Elmer's glue is roughly 2 and a half% of the revenue line okay so like how much are they going to grow Elmer's Glue oh Elmer's Glue hasn't really grown in 40 years but now it's sold out in every store around the world literally sold out in every single store around the world so you have to assume they're ramping up production of Elmer's Glue so earnings were I don't know a few weeks later and this trend had been going on for a couple months now or a few months had been ramping up so I traded uh newal Brands uh via stock options and sure enough the company had like its biggest earnings like ever in recent history because Elmer's Glue sales were up I think like 60% which was doesn't sound like a lot but for a company that's only growing at 2 and a half% a year when you have a two and a half% revenue division that's up 60% that's a big big deal so the stock was up 177% now that doesn't sound like a lot but you have to remember that this was a sty company and the option premiums were like that big only cuz no one was trading options Soul was probably just selling calls thinking he's you know nothing's going to happen the stock never jumps stock never jumps on earnings you know someone actually bought my option but but the story the story that goes all the way back to my childhood was I so I was always a hustler I would do garage sales on the weekends like this is way before Gary ve was talking about garage sales I would buy and I would literally take the bus around the city of Dallas um at like 5: in the morning I would study the sales in the newspaper the night before I would literally study the sales and I knew that garage sales were managed by women although really quick before we go into that are you looking at cutting costs and improving your business's bottom line well the best business operators have turned to our sponsor ramp to help them cut down on wasteful spending and 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description cards issued by Sutton Bank member FDIC terms and conditions apply thank you to RAM for sponsoring this episode and back to the podcast I literally studyed the sales and I knew that garage sales were managed by women older women and they were really good at pricing jewelry and antiques and stuff like that but any item that was mail oriented like train sets or baseball cards or watches or like anything that was male oriented they just kind of discarded and didn't care about because it wasn't like up their alley they didn't really understand it this is pre eBay when you didn't know what things were worth unless you had like a price list in a book and you would look it up to see what it's worth so I would look for garage sales that listed items that were male oriented knowing that they were more likely to be mispriced at the estate sale or the garage sale and I would then take the bus and you could usually only get one sale in to be first at CU you had to be first so I would get there at 5: in the morning and just sit outside the house until they opened up and you know sometimes I hit nothing sometimes I would hit stuff I'd start every morning at the 7-Eleven I would get a snap all flavored iced tea cuz it was really early in the morning I want to wake up you know I didn't drink coffee as a kid so that was like 13 14 years old and one morning I walked in 7-Eleven they didn't have any lemon flavored Snapple I too which what I used to get and I was like what's going on he's like well there instead of having two full refrigerators of Snapple this is back in the day when Snapple was everything there was only half a one door Snapple he's like there's competitors now Arizona other Iced Teas he's like that's all we're going to have for now on so I went home talked to my older brother who's a stock broker I was like can I make money on this he's like well maybe he's like and he taught me how to short Snapple put options right and so I had $300 saved up from all these garage sale trades I done I gave him the $300 in cash I said can you do that for me said yeah I'll buy some puts on Snapple they have earnings in a few weeks whatever so he bought the puts and that was Snapple was one of the hottest companies in the world at the time that was the first earnings they missed earnings because it said inventory was building up in the channel cuz retailers were not giving them as much shelf space so I was a 13 14-year-old kid that saw something that people working on Wall Street didn't even see and that stayed with me I was like how did I see that as a kid just going into 7even how do the guys that work on Wall Street they manage billions of dollar how did they not see that it's just so right in front of your face and what I realized was that people that work in the financial industry their brains aren't tuned to like see things like that they're focused on financials they're focused on technicals sometimes they're part of a herd mentality and they all kind of live in one area of the country at least they did back then they're mostly male and they mostly thought one way so there were lots of opportunities to see things in areas of life that they weren't really focused on that they would miss so the same way that I would look for male oriented items at garage sales I spent a lot of time in my early years trying to detect change with female oriented Trends and and products and brands or brands that were young or youthful because an old white guy on Wall Street didn't really pay attention to things that were youthful or female or things that started trending in the middle of the country so I remember some of my big trades from back in the day were like PF Changs or Cheesecake Factory cuz think about a guy who lives in Manhattan he just never seen a PF chains he doesn't understand the degree of Buzz that was happening in places like Texas when there people were eating Chinese food for the first time right or thought they were eating Chinese food like you didn't understand there was like a three-hour wait to get in that place he didn't they didn't understand how big of a deal that was that they would be able to open hundreds and thousands of these places and everyone would be exactly like that with three-hour weights they thought it was probably a fad but no like people outside of these Cosmopolitan regions had never had Chinese food so it's all about I always say it's about it's not about being really smart it's about being smart in a totally different way than others that that's that's what pays dividends and then what job did you get that you worked at for a while to then go into investing full-time and after that what were some of the most pival trades that you've made in your entire life I love the stories maybe like a big swing one and a big uh you know positive swing and negative swing yeah I I mean so like I traded a lot as a as a young kid and I was having fun with it I was kind of it was kind of a bit of a gambler I was trading options I trade through college when I was at SMU and then I kind of you know you go through a life where you you you start doing other things you know and you just get distracted and that's what happened to me like I just stopped trading for a while I just wasn't interested and it wasn't until I guess my mid 20s mid to late 20s when I was having a real life with a wife and planning a family and wanting things big things like houses and stuff like that and thinking about my retirement like you know you grow up and you're like dude the life is expensive and I was working just a normal job I mean my job was uh at a tech company I was helping to build the world's first online research panel I helped build a company called e- Rewards that ended up controlling about a third of all the research panel in the world meaning anytime someone's doing a study someone has to answer that study and we basically took research panels and moved them online but it was at the end of the day it was just a job I was making good money I was making like $200,000 a year that's fantastic when was this this is in like the mid 2000s early to mid 20000 I mean that's an incredible income at that yeah but I I had accelerated my career I was a bit of a a hustler in my career as well right so I climbed the ladder pretty quick and I was a sales guy and a bis Dev guy and I just you know it's just I was a serious person right like I I Just For Better or Worse like whatever I'm doing in my life I'm you know I'm serious about it and I'm I'm pretty aggressive and and so I was aggressive with my career and I was doing well but I still wasn't doing as well I wanted as I wanted to do I wanted to do way better than that I was like there's no way I can really climb this career any any further it was really tough I was getting frustrated because you know I was looking at guys around me who were like sea level I was like I should be the I should be making that much money I should be making a million a year I was looking to guys on Wall Street going I should be making a million two million a year um but it's hard when you're in a career you know and that's what I'm talking about when it comes to the income gap I was in a good place but for most people but not for me you know a lot of people were in that same situation but instead of making 200k a year they're making 60 or 70 or 80 or 30 mhm and quite honestly they didn't have the Privileges that I had in my life you know I grew up in a great family wealthy neighborhood I had access to all kinds of smart people you know and and I could take risk uh most people just don't have the ability to escape they don't have that escape velocity there's no way to escape whatever your income is whatever your profession is so um the only way for me to escape it was through the market and I knew that I was like in the market I can do whatever I want I could be whoever I want I could like have a job that pays me this much but I can make this much in the market I started with $20,000 I actually had $887,000 to my name and I took 20,000 to the 87,000 I said I'm going to take this 20,000 and I'm going to do the type of trading I did when I was a kid just trying to connect dots look at change and connect dots I'm not looking at financials I'm not looking at technicals by the way I had read every investment book as a kid every single one I was like none of that stuff's for me I tried it all I tried investing in Commodities I used to go to commodity store and I would buy silver bricks of silver and like read the silver price like screw this I've been in this for nine months I'm about five bucks sold back to the store commodity is not for me right I like I went through every type of trading technicals I was like this is boring I can't look at these charts all day I'm like this is just not my it's not my temperament man it's I don't want to live my life like that looking at computer screens and charts it's not me so I was like I had to find something that worked that I was willing I was going to have enough fun with to get serious with so I was like I'm going to do it I'm going to see if I can do it I started with 20,000 and then there was this thing called coest coester was the world's first portfolio tracking service and they tracked like 45,000 accounts a lot of them were ex hedge fund guys you would load up your account and they would see how well you're doing you competed against Real Traders around the world this was back in the 2000s a long time ago well sure enough I was doing pretty well I turned that $2,000 uh $20,000 like I'll never forget this I turned into like oh my gosh I was like at 400,000 I was like 20,000 I was like I 400,000 I remember going to my buddy Patrick uh who's my my best friend who worked at the same company I said I'm going to turn this into a million dollars someday like three months later it was a million bucks with my trading was crazy and then a little bit later it was 2 million no and so I became the number one investor on coester in the world that was the tracking and then I got a bunch of media attention for it and I was like on the new I was on like Fox Business talking about it and then I got a uh a book deal uh to write a book about this methodology how I turned 20,000 to two million in two years and I took a I said this is it I got $2 million I'm done I'm done working I'm quitting my job quit I quit I like I was done like I'm never working again and I said I'm going to take the year off and write the book so I went I took the year off I was having twins that year my wife was pregnant with twins and I worked out of a Starbuck every day I go to Starbucks and I write my book every day for a full year and I wrote the book and it's called laughing at Wall Street came out like 2010 um and it's all about my life and how I got there and all the stories of all the trades that got me I literally talked about all the big trades that got me there uh trades like Uggs trades like Crocs back in the day all this uh um what do you call what's the gene company true religion is it like all these old school companies back they were all it was all like female and youth every heavy female heavy youth Trends I was picking up on all these Trends a little bit quicker than other people connecting the dots in back all stupid simple stuff stuff that an idiot could see like there was nothing sophisticated about anything that I did no I'm just like a big idiot at the end of the day like there's nothing suff I'm aggressive I'm resourceful like I think big but like I barely passed High School guys like I was the bottom cortile of my high school class I've always been a little bit off in the way that my mind works and I just like I never could fig like books and stuff and just it was never my world like if you give me something I'm interested in I'm all in today as you know I told you like I'm up from 10:00 p.m. to 2: to 3:00 a.m. every night every night of the year all I do is social research all I'm doing is reading comments on Tik Tok videos looking for the next thing it's trending that's literally all I do every night seven nights a week Friday Saturday Sunday Monday Tuesday everything um but so I had all these big trades man and it just before you knew it uh yeah I mean it just kept growing and growing and it's never stopped and I'm on my 18th year of social ARB trading and I know this is so hard to believe I don't believe it myself every year I I say to myself the last year was the last year that this is going to happen and like it happened again and it's happening again this year my account's up like 100% again this year even if you think it's a bit overhyped AI is suddenly everywhere from self-driving cars to molecular medicine to business efficiency and if it's not in your industry yet I guarantee you it will be very soon but AI needs a lot of speed and processing power so how do you compete without your cost spiraling 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million the year of the the pandemic uh trading on a starting with an account that had 4 million in it so I turned 4 million into like 34 million or something like that or like I made 3 I was up 35 million at one point but it was because I was converting Chinese newspapers and medical reports I was using Google translate on every single person in China that was in the medical industry talking about covid when it was breaking out over there and I became obsessed I was like this is it this is the big one this is the one I've been waiting for my whole life not like happy that we have a global virus right but I was like like um I knew that things happen really big that the world just does not me cannot mentally grasp until it's you know right in front of their face and if you can capture a little bit early these things only come around so often AI is one of them right robots but at the time it was Co so I I took dude I took like 10% of my account buying put weekly puts and I lost all my money every week for like 3 weeks I lost 30% of my net worth in three weeks because the market wouldn't move I was like this is crazy virus is about to to literally stop the entire world as we know it we're about to have our first pandemic of our of our generation of our lifetime we never knew this was possible the Market's going to crash and it didn't crash and no no like no one's talking about I'm like why is no one seeing this why is no one seeing this and I remember like CNBC had this episode the first day at the market dipped 2% and I was watching CNBC and I never watched CNBC only to see when they would see what I was seeing and start talking about it and all the guys on like Fast Money were like this is the moment we've been waiting for the market dropped 2% here's your chance to get back in to get in the market cheap I was like what the market was like breaking alltime highs it dip 2% and their reaction was what an opportunity to buy more I'm like I almost put my fist through the television so I was going to go broke if if this happened a few more weeks so I just got to stick with it I did it again weekly another way I was basically buying puts on the S&P and I was buying puts on um Casino stocks and Airlines so it's Casino stocks Airlines and then the S&P at large and then when it hit it hit and man it hit and so it's like it was like it hit and I know I I feel terrible talking about this in a positive way because it's like the most devastating thing it's like in my mind I'm like I'm like I can't do anything about the pandemic but I can make money and then use that money in a good way to help people and that's what my life is about that's why I put all my money in the foundation right to help kids but like I was like I'm going to make a lot of like with money comes power comes leverage to do good in the world that's my whole philosophy so yeah it hit it hit big and it was the money was insane it was big way bigger than what you just saw like on a daily basis so um and then the the craziest part was the whole time I was like this is wild because there's like 15 companies where this is actually a good thing not a bad thing Shopify Amazon pelaton uh companies that make anything that would be advantageous to people that know leave their homes anymore you know what I'm saying like you know RVs RV companies and pet compan and you know all the stuff that ended up booming because of the work from home but I was like it's too early the world doesn't see it so I had all these companies ready to go and I was going to buy call options on all of them but I was like I can't do it until people are like flushing this trade out and I wa two days after the market bottomed when it started to come back up I like I think it's time and so I put on all my long trades I got on my short put on all my long trades and that's when it got really nuts um and it's like what would you say your biggest dollar amount day is uh a few million dollars three million in a day or something like that yeah but for an account that was started off at like four million you know like at the beginning of the year the account was 4 million four and a half million so it was crazy and then I made and then and then the the the worst part is after that year it messed with my head and I won a little crazy and you know this cuz I met had dinner with you shortly afterwards you were telling us about all right all just it is what it is so I'm going to put out there I got into nfts okay I got a little we all went a little crazy during the pandemic we all go crazy in our own ways okay I went nuts because like I I joined this text group and a lot of really interesting people it all started with that uh you know Logan Paul was on a uh on a chain with Gary ve and about 12 other guys that bought crypto punks and one of my buddies was on that as soon as they got off of that he texted our group and he was like guys I just got off this crazy Zoom with Gary ve and he like we're all buying crypto punks I was like I want to buy a crypto Punk and so I bought my crypto Punk and then there and then it just went nuts the whole NF and I bought all these nft projects early and it went nuts and I just got addicted it was fun we were all stuck at home during the pandemic and I had this really cool group of like really interesting people and we all got into nfts together and we were talking about them at 2: 4 in the morning we were just having fun with it it was like little mini communities it was one of the funnest things I had done since I was a kid like little pieces of art that were kind of investable and we're all kind of mentally insane from the pandemic anyway and like nothing was real I didn't there were meme coins there was GameStop like I was like this is the future of art you know and like I went in I went in deep and and and I ended up actually not losing money believe it or not because I actually sold most of those nfts relatively close to the peak cuz I saw what was happening to the market it was a liquidity issue have to have additional liquidity and when I realized that that coinbase their nft Marketplace wasn't really anything that anyone was going to do it's like I got get out of this the problem was I was so consumed by nfts that I missed the entire like reversal of that market the next year and I held on to some of those positions too long and I wasn't shorting the market where I definitely would have been if I wasn't so distracted and I probably lost a hundred million dollar that I could have made that year I think so and I also did I know I I I part I had this concept of working with the creater economy to build real businesses and I partnered with this ice cream kid Dylan I remember that yeah poured millions of dollars into doing a super fun ice cream shop in Manhattan and for various reasons like a multitude of reasons that were out of our control it just that business didn't work but it's not about the money I lost in that business it's about my time so I became really distracted for about a year and a half two years and it's it was a critical two years when I could have really killed it and after that whole experience I said that's it I'm back I'm not letting anything else distract me in fact I said I'm not investing in startups anymore for the most part like cuz I used to take F I'm in 100 almost 150 startup Investments right I was like too much my time I'm going all back into a thing I'm great at I have a 17-year track record of like 70 plus per annualized returns in the market what am I doing doing anything else but that it had to be insane right like why would I do anything but that and so I got back in it and I've been back in it now for a couple years and I've had two of the best years in my trading it's wild it's been wild and I you know what I love it so much because I'm re-engaging with my community again and there's like I have thousands you know we have 50,000 our Discord like thousands of people that do this type of trading social AR trading that I kind of wrote a book about you know 15 years ago and they love it and we're just like a community and we're looking for change in the world and we share ideas and like and I'm back with Dave and Jordan we're doing weekly shows again just talking about the stuff we see and you know a lot of times it's little stuff it's a brand popping or a brand falling apart like I talked about that right now like you know Nike I think is still falling apart right now and there are other brands are really hot I'm investing in so we try to get ahead of the trends and invest in them it's it's literally that simple and how [ __ ] fun does that sound the funnest investing ever remember the big moment I think where I remember your channel was popping off the fake Pokemon box so that you did that live yeah but that was like a different thing that was the nft you know that was during the nft days and so one good thing came out of that though I met a guy uh Gary King Pokemon from that and I I had this concept Logan Paul bought the most expensive Pokemon box I was going to buy the most expensive one on top of that and I was going to auction off and give it away for charity to my Foundation just to have fun I was like it seems so fun Pokemon and so I did it and it didn't really make much money like I end up giving hundreds of thousands of dollars to to kids uh Charities but um the market had come down on Pokemon a little bit during that period but I met this guy Gary King Pokemon and he introduced me to another guy uh Matthew who was starting a Pokemon trade show and he's like he's like this guy's really smart Chris you have money you believe in this world I'm like I do believe this world's going to be big I believe like that whole that whole world of anime and and like trading card games is a world that most people on Wall Street and they don't believe it they don't understand it they think it's too nerdy I love nerd culture I think nerd culture is going to grow massively over the next two decades and so I wanted to invest in nerd culture and I was really trading PSA at the time like collectors and then uh it was funny because that got acquired by Steve Cohen I have a good story about Steve Cohen too I can talk about I've never talked about it Happ this Le but um he bought that and I was like dude I was trading that I want and he he acquired it and I was like that's BS cuz that stock was going to double if you didn't acquire it so I invested in this trade show and now collecticon is like a major major trade show we're doing 18 shows next year it's weird how when you do things in life you never know how they're going to play out so I tell people just do a lot of stuff meet a lot of smart people and just engage with people in a positive way and do good things for them you never know how it's going to come back and reward you cuz I'm like that whole time that like I was doing Pokemon stuff I didn't make any money from it it was just a fun thing I was having fun with the community with all these big Pokemon people like there was nothing in it for me at all like zero it cost me money I threw that you did you come to that party I I was I was there and you gave me the empty boxes and I still have them on display by the way so do you know Steve Aoki did that with me so that party cost me $100,000 so you're like Chris you just spent $100,000 to give away $300,000 to kids Charities and you got nothing from it at the time I got nothing from it but I ended up meeting a guy and everybody really thought I was I was very nice by doing that for the community and they were like this is a guy that we can introduce to people I ended up owning a big chunk of this trade show now it's a huge be global trade show worth potentially insane amounts of money so it's funny how life rewards you in weird ways you just got to go out and do stuff and do things curious when you do social Arbitrage because I think that's really interesting what do you look for specifically and before you go into that I do want to say that I've seen Macy honestly picks up on a lot of things before they become like mainstream one of the things that she's gotten really into that I've never heard of before and they're gaining a lot of popularity the little figurines called smiies smies you've heard of this yeah I've heard of everything this is all I do she's into this and she's showing me these communities on like Facebook and Reddit it's like a smiy SMY uh they're big in Japan and she was like oh my God this place sells smiies and we bought like 12 of them yeah and some of the stores they're so popular that they limit them they like two per customer um the the little figurines and like there's a rare one and and I'm thinking like this is something that before anyone else gets to it and like you know so you have to understand something so Wall Street we always say that wall Street's rigged it's rigged in our favor like that's and it pisses me off when people say that wall Street's rigged for like institutions and hedge funds it's not it's rigged in our favor um Wall Street still today their best Alpha the very best Alpha That Wall Street has is access to credit card data and they've had it for like a decade so they get I have this data now right so like they get all the credit card data and they know what people are buying and selling in like weeks behind so like they know what people were buying and selling two weeks ago like not selling what they were buying and stores but the data is dirty it's not that great it's not even that reliable that's the best data they have um but we have better data than them we have data that they are not willing to even look at and it's data that that they wouldn't even know what to do with because it just their their heads don't work like this so you know I had a company ticker tags we were the first social data intelligence company for hedge funds so I taught hedge funds how to interpret social data conversational data like so when I say social data what I mean is conversational data people speaking to each other real humans speaking to each other about what they're doing that night where they're going out what they want to buy what shoes they like like what movies they like that data is so rich and it is the the gold standard for investors because what do people do before they buy something they think about buying it they talk about buying it right um they converse with their friends on social like and specifically the gold standard I tell everyone for the last six years has been comment data on Tik Tok videos because back in the day I used to analyze Twitter and my intelligence platform we had a deal with Twitter we we basically had 10% of every 10% of all the Tweets in real time and we created an index of 1.4 million word combinations that represented every brand and product on Earth and anything that would be spoken that could be relevant to a publicly traded company and we would monitor the volume of conversation around that topic so I can tell you if people were starting to talk about that thing that you just mentioned right more than a month ago or a year ago I can tell you if people are starting to talk about the iPhone or how many people talk about the iPhone in the 7 days before its release compared to the 5 years before that in that 7-Day period so using conversational data to measure interest in granular topics that are really important to publicly traded companies so that's data that anyone in the world has access to just go on Tik Tok and start reading comments of trending videos literally just do that that's what I do that's how I'm generating all this money I'm reading comments of Tik Tok videos that's my Alpha what are some of the things that you're seeing right now that like smaller things like before we go into robots like give us small examples if the average viewer out there wants to try to take something away from this conversation and implement it in their own investing strategy would they go and make bigger sized plays on fewer companies or more plays on more companies like how would they how would they that doesn't matter so much like how you trade doesn't matter that much everyone focuses so much on the pro it's all about Alpha it's about finding information that other people haven't found out yet that are that's meaningful to a publicly traded company it's that simple so I think Crocs are crashing right now so I'm Shor in Crocs uh I believe that Birkin stocks are doing really well this holiday season so I'm long birken stock uh I believe that Elf Cosmetics is doing better than the market thinks they're doing right now so I'm long elf um I believe that Nike is not doing so great right now so I'm short Nike uh I won't be right on all this stuff but I'm getting this through mainly through conversational data I can see what people are talking about I see how they're talking about it I see where the buzz is uh Vans are doing really bad uh Vans is you know the company that owns Vans VF Corp also owns Northface Northface isn't doing too good right now either and so they're trying to pull a turnaround but the turnaround isn't working so I'm evaluating people speaking about Vans and like no one's speaking about Vans it's it's just not happening so I'm short VF Corp so these are kind of the some of the little trades that I'm involved with right now that might only last a few weeks and no I'm not putting 10% of my portfolio on them but this is more historically What I've Done Right you know fun trades I've talked about in the past is there was a time about a decade ago when women started to transition from wired bras to bralets bralets are bras without wires in them Victoria secret made their brand on wired bras bralets cost about a third of what a wired bra cost the margins are much lower and Victoria Secret didn't even sell them when they were coming into style all right so it was hugely detrimental to Victoria's Secret when women wanted unstructured BRS wires how you know this I mean because because because I see people starting to use the word braw it and I said what is the word braw it oh okay now once you see the little bit then you start researching it then you start research and you're like oh my God a lot of women are talking about bralets in fact at the time they were talking about either wearing brets or no bras this is like during that no bra so it's like it was like this error when people didn't want push-up bras because Victoria Secret built a reputation on on wired push-up bras which were really popular for 20 years right and so this is really detrimental for that brand because one they were late to start selling brawlet and then even when they started selling brawlet the market for brawlet were so cheap and the margins were so thin that every customer that bought a brawlet instead of a bra they made less money on so they were getting killed from every angle so if you're the first to detect that change in the world and then connect the dots to who's going to win who's going to lose who was the winner Ary Ary was one of the first Brands to start selling bralets so they benefited from the brawlet trend Victoria Secret was harmed by the bralett trend so that's a really weird random example but I have about 80 of those over the past 18 years so the past when you say Chris how did you turn you know I've generated I don't know 70 or 80 million or $90 million from $220,000 over 18 years right and the weird part is that if it wasn't for all those gains being shortterm and me paying taxes every year like on all those gains and me pulling so much money I pulled almost all my profits out every year to invest in startups and private companies if I would have just left all that money in my brokerage account and maintain those returns that 20,000 today would be like a billion at least I think so but you ask how do you do that I did that from roughly 75 trades that happened over 80 years the bralett trade the this trade oh elf I just talked about elf my first elf trade was when Jeffree Star who's a beauty influencer did a YouTube video talking about their elf putty primer which was a $7 putty primer we I know you guys don't know what primer is but putty Prim yeah yeah so so it's what you put on first right yeah so elf was this really junky brand that they only sold in drugstores pharmacies CVS and Walgreens right it was a junky brand and Jeffree Star comes out and does a video and says this $7 putty primer is as good as this $50 putty primer and he did this whole video you know how many views it got like 12 million views so you know what I did I went to the Walgreens by my house and I just stood there right there by the putty primer by the elf I just stood there and all day long moms came in and girls came in and they were just go oh what why are you here we saw the Jeffree Star video oh cool and I watch they didn't just buy the putty primer they bought the putty primer and then they would maybe get one or two other things from Elf cuz all of a sudden now elfl is like a cool brand cuz Jeffree Star said it was cool so I actually went out and I found the Wall Street analyst that covered. and cosmetics brands for one of the big four Banks and I called them up on the phone just randomly I'm like hey you know I I know you cover this sector I just want to ask you have you seen the Jeffree Star video he's like who's Jeffree Star I hung up the phone that's all I needed to know right so it's like Wall Street didn't even know they don't watch YouTube right these guys are these sside analysts at Goldman and BFA they're not watching Jeffree Star makeup videos on YouTube I am that's where I get my Alpha Okay so that but that's but that's how you do it that's how you do it so elf was $7 a share $7 a share and I went all in on elf and unfortunately I exited most my elf at about 14 which is like a couple months later like almost it like almost doubled pretty much in like a few months and the funniest part about it was that on the earnings call they called out the elf primer putty and it was like it was a primer putty primer whatever I was like man it's so cool when you and that's what I call the point of information dissemination so I invest at a point of what I call uh um uh information imbalance when you have information that the rest of the world doesn't have at the point of information parody when that information has been disseminated amongst other investors in Wall Street sometimes that could be through an earnings call sometimes it could be because an analyst did finally pick it up or sometimes it's because that the credit card data starts showing big charges um and then Wall Street picks it up and they start trading it have you ever noticed that stocks sometimes move like a week or two before earnings that's the credit card data that wall Street's trading so I actually spend I spend six figures on data every year so I'm I spent hundreds of thousands of dollars to buy institutional data the same data the hedge funds buy but I don't buy it to trade off of it I buy it so I can see when they're seeing what I saw earlier and that's when I know that the information I saw is now being reflected in their data so my my window is closing that's when I exit does that make sense wow it does how long if someone wants to do some sort of social Arbitrage investing should they research something before they actually make a move so I I I sometimes I I the top of the funnel where I I find something on Tik Tok and the discovery the discovery is very exciting as you find it and you're like wow once you discover something then you have to vet it you have to make sure that it's real so I will look at Google Trend data to see are people searching for that thing I will look at webstats data I will go to the stores where they sell that product and start talking to clerks and and verify hey how like how tell me show me your hottest product like and and see if they're going to tell me the thing I think they're going to tell me right and on that real quick did they ever ask you like why and you tell oh I want to make an investment yeah so what I I try not to lie I'm not like comfortable lying to people so tell them that that I'm doing research you know like I'm just doing research like I I do Trend research I'm like hey I'm a trend researcher which is true for my investment but that's never led into a conversation of them being like maybe I should invest um no if they do it's what I'm just saying that would be these are these are clerks at sort do you remember when under arour started making uh their what do you call like their undershirt the tighter thing yeah yeah that was like that was like seven eight n eight eight years ago cold cold gear remember the cold gear under for make cold gear that first winner that they were making cold gear it happened to be a really cold winner and I went to the Under Armour store cuz I had seen that people were talking about this everywhere I went to the Under Armour stores and the outlet stores and I'll never forget it I asked the guy at the store I'm like are people buying this you know this cold gear he's like he's like sir he goes we have never experience anything like this in the history of the company it is crazy we cannot keep stock it we're manufacturing as much as we can make I'm like thank you very much I remember coming out of that Under Armour store I remember the outlet mall I was at and calling Jordan and Dave on the phone being like dude we are going all in on Under Armour today I was like I was like the market was already closed but I was like tomorrow morning we were going all in on Under Armour but like so you you want to like when you get in a trade heavy you want to leave nothing on the table you want to make sure anything that you can investigate to like prove your thesis I call it in my I call you have a thesis my thesis is that this thing is going to really benefit this company this quarter but that's a thesis right you have to prove out the thesis so like anywhere where you can pull data speak to people interview people like you got to get all the data you can and so what's really cool about having a community now like when the money like when I find something like I'll just share it with them be like guys I found this like poke holes in my thesis or help me prove my thesis and now like to be part of a community of investment nerds that think the way you do first of all that makes it more fun cuz I'm not a loner my whole life I've been a loner investor like the weird investing kid no one else invested like me you have all these technical traders you know the technical traders they're like they're like a class of their own they all relate I don't relate to them at all Wall Street Traders that are like fundamental traders that analyze spreadsheet like that analyze fun I that's boring as crap to me like I never want to do that I don't relate to those guys at all reading comments on Tik Tok videos and looking for Trends and connecting dots to the next big thing that is freaking fun as hell like I would do this for free without making money the fact that I'm able to make this much money doing this like I'm watching Tik Tok videos and that's my job is just watching Tik Tok videos and reading comments and it's pretty cool because you feel like a really deep connection to the world and culture cuz I'm reading literally thousands of comments a night so I'm reading what all the youth is speaking about like what everyone's speaking about from every demographic no matter who you are what you look like where you live in the world like I have a really good sense that like how people are feeling what they're doing what they're liking and and it and it feels good to be that attached to the world but it's like my profession but it's how do you know if you're late to something because you talking about this has got me running through my mind of all the things that I'm thinking that I've noticed that that people my age and younger are gravitating towards and the one that really stood out to me uh it's in the refrigerator over here it's Fairlife protein shakes and I'm like my gosh last year we have been obsessed with these Fair Life protein been big for like five six years but exactly so I'm late to it so that definitely late to it but also when when it comes to uh when it comes to milk products believe me I've had numerous opportunities to trade it's Dairy it's it's you can't trade dairy in the public markets right now it's very diff I I I I've had numerous opportunities to trade Dairy I have tried I've considered trading like Commodities like you just can't do it so there's no way to trade that here's another one that I found interesting is that about two years ago year and a half ago uh Macy's been a big fan of Starbucks she stopped going to Starbucks and she complained that the prices were too high and she instead started going to Dutch Bros dude and Dutch Bros started popping up everywhere in Vegas and they were paying an absurd amount price per square foot for these little ret till kiosk sort of places and I was thinking to myself back then I'm like hm if she's doing this not going to Starbucks how many other people are preferring Dutch Bros dude you don't watch our show enough Graham that's been a storyline on our show for years Dutch Bros um and the Starbucks short the great Starbucks short this year that was one of my biggest trades of the year the Starbucks short yeah I I I so I'm on the right track you're AB you're absolutely on this timing timing is everything so you're organically seeing things through your life and that's great uh we live in a digital world now what's really cool is that you don't know if things are going to hit you a week late a month late a year late 5 years late but if you're proactively reading thousands of comments every day of your life you're going to pick up on that stuff the second it happens right and so I'm being proactive where you're being reactive which by the way there are a lot of opportunities to invest just by being reactive when you because a lot of times you'll see it first by chance because someone in your life it could be Macy just by chance you're seeing it quickly but I don't want to take a chance I want to see it quickly every time um but to answer your question what you just asked is the hardest part of my process trying to discern the degree to which that information that you discovered is already well known by the investing public is not is a little bit of an art and a science so what you do is you have to you have to leave the real world and go into the investment world where people talk about stocks on stock boards and Seeking Alpha and analyst reports and news stories and anywhere where someone is talking about that stock you read everything you read every quarterly report going back multiple quarters you want to see if there's any mentions about that thing that is part of your thesis so if your thesis is that Starbucks is becoming too expensive and therefore Starbucks is people are not going to Starbucks anymore and they're switching Brands to what degree are investors aware of that are they talking about that and are they deciding to sell their Starbucks or short it because of that to what degree do sell sign analysts talk about that in their reports to what degree has the company admitted that so it's not a black or white thing there are a lot of gray areas and it's the toughest part because people are like oh when do you sell you sell when you hit information parody well how do you know you don't always know you just have a feel for it like okay I think people kind of know what I knew so I'm going to maybe sell half right what once you know for sure that the world knows about this you're out of the investment and it doesn't matter if you made money lost money what the stock did I only trade information I don't trade stock price I just trade information so like and like I said it might it might get into your you know our eventual conversation about robots let's talk about robots I can tell you you've been gearing up this entire episode because you know what like there're all these small trades and they they'll go on forever and I'll be doing them forever but the big one don't come around that often okay and occasionally there's one that comes around once in a lifetime I think and and this is it for me like this is it this is the biggest trade of my life uh and it's the robot trade it's you know the fancy way to say robots or humanoids is in body day eyes it's the embodiment of artificial intelligence right and you probably heard Jensen and video talk about it a lot the last six to nine months here Elon talking about it a lot um I've talk about it constantly but I firmly believe that the embodiment of artificial intelligence is going to radically rebuild our world and change our economy unlike we've ever seen in our lifetime start us out with why robots where did you first come up with the concept of robots are going to take over this is going to be the the next great wealth transfer so to speak that this is it it's just the biggest change biggest change to our life and with that big of a change becomes opportunity right eight years ago I was introduced to a couple kids that had came out of the UT robotics program in Austin and they were making exoskeletons for the defense department and for Nessa and they were generating a ton of money like $30 million of contract Revenue making basically Iron Man suits I like this is the coolest thing I've ever seen and this would make for the dumbest investment of my life so I'm not investing in you and I said no but I kept up with them over the years and every time I go to South by Southwest I meet with these kids and like oh they're really advancing their stuff and then they one day they started making humanoid robots and they pulled me aside uh this is about 3 years ago and they said we are having a moment with humanoid robots with actuator technology which are the muscles of the Bots with sensor technology and with whole body control which is how the robot controls itself and walks and balances and articulates and the founder of this company uh Jeff Cardis said Chris within low singled digigit ears I'm going to have a walking humanoid robot that is going to be able to function in a commercial and Industrial setting and do phys physical labor at close to human speed and I was like you know that if you actually were to achieve that it would be the biggest thing that was ever invented he's like I know and it's going to happen uh he's like I guarantee you it's going to happen low singled digigit years and I was like well you're probably crazy but just in case you're not I'm going to write you a check and I wrote him a check a small smallest check for me and I kept up with him and I was like maybe I should research this stuff a little deeper I started researching humanoid robots the viability of them the history of them how real this was then Elon started talking about it I was like oh elon's talking about this now like this is kind of interesting and then I got a call a year ago uh from a venture investor that I had kind of educated on robots he's like did you hear about this company in San Francisco who's raising like 700 million back by Microsoft and open AI making humanoids called Figure AI I was like not really but uh can you introduce me to the founder and he did and I ended up making a pretty large investment in that company and then I also went back to Jeff and I said Jeff like what's going on with your robot company and I can't say anything too specific here tonight but there's some big big things happening uh with his company as well and I ended up just started to like hang out with Jeff and like be like how can I help I want to be part of this and I just now I'm like 300 hours deep into humanoid uh robotics research I converse with humanoid Engineers around the world I talk to other investors that are invested in either figure or ronic or both and we talk about this seven days a week like we're doing deep research we're analyzing the technology we're trying to assess how quickly it's going to be adopted by the world uh because we're investors in these companies we have like Insight that almost no one else in the world has uh from their CEOs that I can't speak about on this show because I'm under NDA from both companies you know all I can say is that what I have seen with my own eyes is unbelievably real and this is happen happening this is no longer like a 50% or 90% or 95% it's like 100% we are going to have humanoid robots that are going to be doing commercial physical labor that will be able to do any job on Earth before long and we're going to have access to infinite labor in our world think about what it's like to have access to infinite physical labor what would we build what industries would evolve from that um how would that change our world Imagine you know there's a 100 million people in the world who spend the bulk of their prime years when they should be getting married having kids having a joyous life they spend those years taking care of a parent or grandparent not often in our world but in most of the world that's common that's insane it's actually insane could you imagine spending the bulk of your prime years just wiping the butt of your granddad um well that's a story that Jeff tells about his grandparents and that's one of The Inspirations of why he started optronic and for 10 years has been trying to build this humanoid robot and we have a a few of these humanoid companies around the world not many a few that are truly real and Commercial and scalable um that are going to be I think become some of the largest companies on Earth and right now they're very small except for one Tesla right and so Tesla is not small but what the funny thing about Tesla is all the exciting stuff happening at Tesla right now hardly anyone's paying attention to the only thing that matters at Tesla which is their humanoid division their Optimist division so I I I put out a tweet thread back in January of this year almost a full year ago and it was a 15-part tweet thread when no one was talking about humanoids and it was how The Optimist division of Tesla by 2030 could be valued at $10 trillion based on them only producing a million and a half robots at $100,000 a year lease rate which is the go going to be the going rate for for commercial robots yeah so commercial robots will be leased to the world so they they won't be you can't buy them these are robots that you'll see in factories robots that you'll see in warehousing in logistics facilities all around the world there's Dem man for tens and tens of millions of these robots and it's not because these companies want to displace humans none of them do uh these companies simply want to grow they simply do not have the physical labor they need to grow um so these robots will allow them to grow uh depending upon who you believe we have somewhere between a 50 million and 350 million human labor shortage by 20030 for physical labor so we need 50 to 350 mlion million human physical laborers and we're just not getting them if you talk to these companies around the world they cannot find young people to do these jobs that older people are doing physical labor you know laying Foundation to all this stuff so the demand is through the roof but forget about the demand I mean imagine having infinite physical labor on Earth what can we build what can we do like how would our lives change imagine every human as you got older you had someone to take care of you right to help you get up get out of bed get to the bathroom someone to take your trash out it would allow you to live a more productive Humane life in your older years it would dramatically increase like the quality of life for almost every human on earth this to me seems like it would drive down the cost eventually just about everything like let's say building a house is a good example when you remove the labor component and you're able to employ these robots that work 247 perfect without making any mistakes the cost of these things should go down as companies profit margins increase there's one problem with your thesis and there's a paradox and I don't have the name of it off the top of my head is related to coal and the concept was the more coal that we were able to find back in the day when coal was the energy that everyone used the cheaper coal would become right because you'd have IM unreal amounts of coal it would get really cheap do you know what happened as we started to discover more coal we use more coal right we use more call so maybe the things that you're thinking of today the style of house that people like to live in globally would get cheaper but what we will demand out of the world will go up so the same way that we live in many mansions now that never existed 25 30 years ago that's become common now people expect that now no one ever expected that now we all grew up in like 1500 foot houses right um so what we might expect Graham in like 20 or 30 years might look very different from what we expect today out of life and so yes if we were to live exactly like this in 30 years it could be super deflationary but if our expectations on life climb that high if we start to enter an age of abundance where everybody wants all this stuff right whatever it is everybody wants a humanoid you know nobody wants to cook anymore no one wants to clean their house anymore the humanoid does everything for you everybody wants this and that um it might radically change the economics of your thesis so it's like we can't really visualize that but really quick I just want to mention 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to love it by raycon.com thank you so much raycon for sponsoring this episode and now let's get back to the podcast what are the biggest misconceptions people have right now for humanoid robots do you think people are more in favor of this or do do you think they look at this and say that's going to take my job this is bad for the society we need to stop this I think almost all people will support it but there will always be some that say that I mean the truth is there's never been a time in history where a technology that displaces human has not created more human jobs not less um because what will happen is once we have access to all this infinite physical labor it's going to create tremendous demand for new Industries new things right that will require humans right to be able to manage and do more companies more sectors uh more things in life right maybe what we visual maybe what we understand as work in 20 years doesn't seem like work today but it will be work work in 20 years maybe we all become entertainers I don't know um but life will change and we just cannot perceive how that life is going to change so initially people will be scared like they always are they were super scared back in the day when we had technology right for the first time and it started to automate all jobs what happened we have so many more jobs now because of Technology right no one would have ever believed that a social media manager would be a job if you showed someone 40 years ago what do you do oh I make memes for like that's not a job like yes it is it's a hard job it's a like no you don't actually work in 2024 but like you get what I'm saying so like when we think about what a job looks like in 2045 we would laugh at that today sure but in the future they'll be like this is a serious job that does a lot of good for the world and makes people happy and adds value to the to to our civilization but we can't comprehend that today um and only this type of technological advancement will allow us to enter that future age right so I'm not I'm super excited because listen my life is awesome uh but most people in the world don't get to live my life and you know things like humanoid robots are going to solve so many problems for so much of the world that doesn't have access to the things that we have access to at the top 1% in the US are there any downsides that you could think of can you make an argument for the reasons there could this could be a problem I think there are a lot of downsides with AI that scare the hell out of me and everyone else and I think they're super valid that scares me because it's very hard to control you can't touch it feel it the embodiment of AI is way more controllable when it comes to laborers or robots that help us in the house or the help us at work or to help us build civilization where it gets a little bit scary is when you start taking those robots and doing things in the military with them right and you have you know you know battle and you have the little things from Black Mirror that will attack your home millions of robot bees that scares the hell out of me um but I think the robot companies that I work with right now are all pretty adamant that they are not getting involved in any of that so I think when you think about embodied artificial intelligence you have different sectors and the sector that I'm referring to which are humanoid robots to rebuild the Earth in a way that benefits society and more people and Humanity um and helps us in our home and helps the elderly and helps healthare right I don't think anyone's going to have an issue with that I think drones and B all that stuff gets very scary very quickly but I I wouldn't want to merge those two worlds together because I know the CEOs of these companies and they certainly are thinking about positive things right and only positive things for our world what is the current state of humanoid robot engineering what companies are at the Forefront of that and kind of what what is the product that they've been able to produce so far so there's three in the US uh there's Tesla with Optimus there's figure AI in San Francisco and there's optronic in uh Austin optronic has been mostly kind of uh fly under the radar I think on purpose but I think we're going to hear a lot more about atronic in the next year uh there is Boston Dynamics which is owned by Hyundai they actually made an experimental robot for 10 years it's the one that we all saw videos of we think it's really cool yeah well the dog but also the big one that would do the flips and stuff the problem is that's an experimental robot that has you know hydraulic actuators it costs like over a million dollars to make it's not a commercially viable robot that you could put in a factory or you can put in a warehouse to move boxes do you know how many boxes are moved a year commercially like just think what would you guess just like commercial boxes move from trucks to warehouses did you say in the world or globally yeah globally just take a guess probably 10 billion no I'm going to say I'm going to say two trillion yeah so I did some cocktail napkin math I'm pretty good at it but it could be off but uh I I estimated about N9 trillion box this here I think there are some stats that support a number in that range but just that alone moving boxes and by the way nobody no human on earth should have to live their entire life moving sheet metal from 2 feet behind them to 2 feet in front of them for 45 years lower back issues they Elder their older years are horrible right um those jobs won't exist for humans in 30 years and that that's a good thing we need to take we need to take care of these people in the interim time and by the way like I said no one's displacing these humans anytime in the next 10 20 like we need more physical not displacing the ones we have we need to keep the ones we have but add more the Next Generation they don't want to do that work but these bot companies right now it would blow your mind how how advanced they are and how quickly they're moving like like every month it would literally melt your mind like the things that I've seen like it's wild how quickly they're moving and I haven't even seen everything yet but they will be doing commercial work next year there will be humanoid robots in 2025 in factory settings doing physical labor jobs next year in small batches there's a lot of learning a lot of edge cases right so they'll be working in controlled settings we're going to try to get them up to human speed right cuz right now they're not fully at human speed but I think people in this sector are adamant that they can get up to about 120 to 150% of human speed eventually and they won't have like 9 to five work hours either they'll be working 23 Plus hours a day so the batteries last about four hours in some cases they're hot swappable and other cases they're rechargeable I mean there's a a lot of different approaches and different companies are taking different approaches and that part's not even that important but they'll be able to work 23 hours a day um yes uh you have robots hot swap the battery they will be no they will be no no they they they will be they 100% that's already going to that's going to happen but again the the humans if any humans were to get this place they're going to be doing better things that are probably making more money than they make currently so but this is happening guys it's not happening like right this second but we're not talking about 10 15 years away that you know when Elon said says something I don't believe it but it might be true but I don't assume it's true um but all this talk that if you read between the lines of stuff elon's been saying about humanoids it's not fully true but it's it's kind of true kind of reminds me of like in the 19 40s and 50s how having like a TV in your house was like a rich person thing and then they became really common the internet having a computer in your house was like a big thing in the '90s in the early 90s like you go to Grandma's house she didn't have a computer Compu now they're common everyone has one that a robot could be like a rich person thing 10 years AG initially yes but eventually everyone 50 years from now it's it's like a common place every house has one of those like little robot workers cleaning cooking laundry housekeeping uh gardening ask a mom about this how badly they want one right I mean you ask any mom if you had a bot in your house that would literally just go around picking up stuff and did nothing else she'd be like Soul it picks up stuff Soul it also does your dishes it also does your laundry it also does your closet and when it turns from Spring to Fall it redo your closet based on the fall stuff it'll take all the spring stuff Fold It Up put it away it knows what you like it knows how you like things right we're talking about generalized autonomous robotics we're talking about robots guys this is not decades away where you will be able to speak to the bot using large language models it will interpret what you said it will learn on the Fly and do whatever you need to have done are relationships going to be obsolete are people going to choose to have relationships with robots I think the thing that threatens relationships more than anything else is not so much the robots but the artificial intelligence Bots that are companion Bots that are more digital I don't necessarily know that the human like the robot form eventually maybe but like my mind's not there that's kind of crazy yeah eventually yes it's going to be indistinguishable what is Wild is if you were to study what's happening right now with companion Bots meaning artificial intelligence not not physical Bots but just AI uh companion Bots it is some of the stickiest uh technology we'd ever seen in our lifetime it is so sticky once people start using those companion Bots to converse dud I'm news stories like young men falling in love with these Bots it's happening all the time there's one there's like a Game of Thrones bot that like remember that and like told the like I guess the guy was a little mentally unstable had had his own issues but like was deep in this bot like having conversations as though it's a real person taking everything to heart I know this that's happening that will happen I don't think I like it I do like some of mental health stuff because anyone could have access theoretically to the best psychologist the right who gets to know you and understand you again these are things at the top 1% we all have access to it most people don't um to have access to like stay the-art the best psychology right the best custom for you education is going to be radically reformed physical health I think would be crazy physical health I having your Bot trainer at home have your B train like like your physical therapist but I'm saying this is this is the epitome of population decline because someone doesn't need to go out and be social they don't need to meet anybody they could have one robot that serves every single purpose a friend a companion a lover uh a psychiatrist a doctor a personal trainer you download whatever you want to they're everything you want you don't want to talk to them you tell them away that's a deep Dart wor Wormhole I will tell you this I'm older than you guys I grew up in the ' 80s and '90s and you know how people say oh and they look at videos of people when they went to parties how they're interacting and engaging and what it was like I'm going to tell you right now it really was that good like it really like it's no no no [ __ ] like I I reminisce I talk to my friends all the time I'm like do you realize how lucky we were that we got to be in high school in the late 80s early '90s and we're all like dude it was incredible like no phones no record of anything people all to other we would but you would engage deeply with other humans all the time like you are constantly just looking in the eyes of your friends and just engaging and hanging out and having these moments all the time there was never a phone there was it didn't exist I do agree with you it scares the hell out of me because it's not an exaggeration that those that time period was so special it was phenomen it was great I would do anything to go back there I even say like I hope that the metaverse can replicate that world so I can just go back and relive some of it cuz like it was really that good and I have massive concern about like the way that this is messing with our heads right now like no one's head's More Mess With I told you I spent hours a night on Tik Tok for my career profession and it has rewired my brain to where I can no longer watch a movie anymore I can't sit down and watch a TV show bad I started watching Netflix 2x speed they yep they offer a feature to because I'm like too slow like I'm so attuned to YouTube algorithms where I'm there's a pause for a few seconds I'm like skip skip that's crazy what does Macy think about that I don't watch it with I don't do that with Macy but if I if I'm like traveling on a plane or something like that or I'll just put it on I force myself now I say hey this Show's great I know it's great I'm taking my phone I'm not I'm going to force myself to watch and it's so slow and it's like but I'm like I can't if I don't do this my brain is going to get so warped and it's like I know what it's like to be a 15-year-old like it's horrible guys it's like it's horrible but you hear stories of of people like they're getting married later they're having kids later they're having their first like you know intimate experiences later in life or more but but I think all of that's a reflection of just people are glued to their phones not having social interaction robots are going be more than that it's more than that so I think about this all the time because I have kids that are 14 twins they're too SM they know too much so if you look at relationship Tik Tok everything you would ever want to know about the opposite sex about how to engage like they know they know too much and then they get angry and expectations get high like there's so much information people talking about relationships we were so dumb 25 years ago you would just like when you were kind of ready to get married or whatever whoever was in front of you who you were kind of attracted to I'm not talking about me personally just the de like I got lucky I got very lucky um but a lot of people like from my generation and older is like oh like she was at my job and worked at the cubicle next to me and was kind of pretty and like that's how people ended up marrying people now I got super lucky but most people that you were just dumb and you were forced to doing that and you know what it benefited you because you ended up not overthinking anything okay you just like you made it work yeah what you didn't look for the perfect person you didn't have these lists like have you seen these like Tik toks where it's like the 800x that a girl gets of a guy like it's because it's like it gets to a point where it's like dude like you're never no one's ever going to be happy with a mate anymore because you're looking for all these things in convers but my point is you see that and then you could program or a robot to be perfect but to be imperfect enough it's like a a slot machine where it doesn't give you a win every time but it gives you a win one in seven enough that keeps you going and hooked so the AI or the robot is not going to be perfect but it's going to pull away just enough to make you want to chase it I think it's going to be scary when it trly understands human nature to be able to push back as much as needed to give you rewards as much much as you need to stay addicted to it I know it's going to be scary and I'm you know I'm glad I'm just an investor and I think about that stuff because honestly when I go down that Wormhole it it's depressing it it's depressing for me because I I see what's happening and it's not it's not good emotionally for people and like lifestyle like you're saying no one no one they're just staying single now and and I see so many people like cuz I read so many comments the comments that I read more than anything else are like I'm fine being single for the rest of my life I see that all the time they're like I'm happy alone I'm happy alone people are like they've given up they just don't even desire it and that's what's messing with my head cuz you think about a dystopian future when the concept of a relationship as we've known it throughout our human history does that could that theoretically kind of go away when you could have children without being you know what I'm saying like you look at we have children now um and and with science we can do that I think in 20 or 30 years without even doing any of the stuff anymore so it's like it's it's a really dystopian future and and I see it happening I really do I'm seeing it in comment data right now and I kind of ignore it because it has nothing to do with investing but I can't get away with I can't get away from where do you think that's coming from where is the frustration underneath all of it it didn't seem like like this was like 15 years ago when I was in high school none of that was a thing because there's an echo chamber of people that are just as angry as you are and you're able to converse with them or read their comments and read their watch their videos there's millions of these videos that are like women are terrible guys are terrible right and then they just get in that Echo chamber of we're not going to hook up with guys anymore or like we're done with women we don't need women we don't need to be married get nothing from it blah blah blah you know like and listen a lot of the points that people are making are valid on both sides both sides are valid that's the problem is that intuitively when you read this stuff and you see these experiences that these people have had through marriage and relationships you're like I don't want that forget about that um and that's why I say it was nice a time when we were dumber and we didn't overthink everything and we just kind of did things that intuitively maybe don't make that much sense if you're overthinking them but you end up having this really cool life that's dirty and messy and maybe you're a relationship isn't perfect and maybe kids is hard and they're not perfect but like at the end of the day like it's part of life and like I'm worried that we're overthinking everything because we have access to so much information and so much like like engagement with each other of exposing all these thoughts all the time I agree I think we could be overthinking things cuz you also I run into the concept problem of having Dogma come at me from every direction same sub subject matter two completely conflicting ideas about that subject matter telling me this is the truth this whether it comes to diet whether it comes to dating whether it comes to Fashion all of that stuff and everyone has their own objectively correct opinion and I also think there's maybe also a chance that we're not overthinking but we're we're producing just numb humans what do you think to the tune of people just spending and whittling their time away on social media and not really having to ask themselves what is the meaning of all of this because they can I guess find you know Escape Solitude and just go on their phone and pass time it it is but there are benefits to it too we can all find our niches now it was very hard to hard to do that in the past like I talked about owning collecticon and all these people like they all have communities online you know and and yeah they end up consuming a lot but a lot of what they consume is in their in their niche in their passion right whatever that whatever that is it might not be relatable for me but I I do feel that people can like find people don't feel that they're an outcast anymore the outcast is going away because there's a community for everyone and you could find like-minded people and you could hang out with those people whether it's digitally or consume their content and like there's like something joyous about consuming content of people that think like you and you don't feel alone right in in life because like there's a lot of people so like there are some positives here is all I'm saying there there's positives and negatives um I mean listen I get to I get to ingest robot content all the time I'm friends with all the robot YouTubers now right like it's it's awesome and we're all robot nerds and I'm like I'm a hybrid investment nerd and a robot nerd and bringing those worlds together and by the way like getting back to the robot thesis I think Tesla most Tesla investors are not invested in Tesla for the robot division that blows my mind it hasn't even it hasn't even like scratched the surface yet of Tesla investors people are Elon musk's timelines and that his inability to hit what he says and saying okay he's talking about robots that's probably another 10 years from now let's not focus on that he's still he still hasn't even gotten Us full self-driving that's like completely hands off I could text on the phone and work on my computer and look back at the passenger and like not have to keep my hand like on the wheel yeah I I love what you just said because that is the biggest like piece of information asymmetry ever in that no he cried so many times now that he actually is on to the biggest thing that's ever happened No One Believes him I I I I love like I think about it all the time I'm like I even I was saying this a year and a half ago I was like no one is going to believe Elon in his humanoids because he already lost his reputation when it comes to timelines on autonomous driving so like no one's going to believe him and by the way I'm not saying this is going to like happen overnight either but it's not decades away I think people were disappointed when they saw his uh humanoid experience and humanoids were serving people alcohol and it was obviously like a comedian behind like speaking with people yeah yeah it was teleoperated which by the way in the robot Community there's like nothing wrong with that teleoperation is the gold standard in how we train robots uh using artificial intelligence so you teleoperate the robot but every millisecond of that performance of how the robot interacts with the human what they do uh the sensors and its fingers the way that it walks the way that it moves its arms the reactions that's all training an artificial intelligence model so that in the future you could have those exact robots in that exact setting without being teleoperated the only way that they're going to learn how to do that on their own is either to go through a teleoperated training data set or put it in a simulated data set like they have in Nvidia Nvidia has robotic simulat data sets but like we have to train the robots this is not an easy process guys training robots to basically think like humans and act like humans and engage with the real world environment around them is not an easy thing that's going to take years but it will happen it will happen and eventually we'll have generalized autonomous robots that can do anything I can you can drop a thousand robots in a company and you could the peran could be like I need you to do these tasks and they'll be like okay can you show us how to do them so we know exactly how to do them like yeah my crew will show you how to do them for an hour and then I want you to do them with the other 20 trucks and they'll just go to work like that's going to be like you won't have to train them more than that how does Google's Quantum chip fit into this is this a part of the equation where their chip could somehow power these like way faster and make them way smarter or or the two separate I think they're I think they're separate but the concept of quantum Computing is super interesting when we think about just generally how we're going to advance artificial intelligence over the next decade decade and a half and the quicker we advance artificial intelligence artificial intelligence and robots go hand inand remember this is called embodied AI it's the embodiment of artificial intelligence there's no doubt that Quantum Computing once we start to commercialize it will further Advance artificial intelligence not just to be generalized but to be super artificial intelligence right so to have artificial intelligence that's actually smarter than humans and when you combine that with autonomous robotics you can really have wild things happen right on Earth to me they they what we can achieve with this is just wild so as an investor remember something guys I have never seen a point in my lifetime where we have pulled forward Revenue uh as investors as aggressively as the last four years since the pandemic so what I mean by that is when we have Industries emerging as soon as we start to see that this industry is developing and it's going to happen we start to look at the revenue it will produce like with Nvidia and we don't have to wait 10 years for that company to grow into the valuation anymore that valuation gets sucked forward which is kind of interesting as an investor so if you can catch something that's really large that has a large total addressable market like physical labor is about a third of global GDP believe it or not and some people think that once we have infinite physical labor that physical labor could be larger than our GDP today in 15 or 20 years so this is the largest industry on Earth theoretically not even theoretically it is the largest industry on Earth and if we Crack the Code which we already have it's just a matter of engineering scaling this out now wall Street's going to catch on to it very quickly and I think they're going to pull forward those Revenue models of what does it look like when you're you're printing Millions tens of millions hundreds of millions of robots and they're being leased out at these rates because the value of the bot is that big you're going to have companies that are massively larger than today's companies that's why when I th I'm not like a Cathy would I don't normally throw out big numbers like I threw out in January when I said Tesla could be a 10 trillion dollar just their Optimist division could be 10 trillion by the end of 2030 I thought about that tweet thread a long time before I hit the button to send it out I was like no I really believe this I really believe that that is real and at the time Tesla was like a $400 billion do company or 300 200 it was like at its low I really believe that and I think fast forward a couple years the concept of having these 10 trillion doll companies is not going to be that spectacular anymore or that seem that OB seen um but the Tam is H the total addressable Market is gigantic how much does it affect it if the overall market right now is very expensive when you look at it objectively I mean the market the PE Ratio is is only been this high in like the 1920s 2000.com bubble a lot of people do say that we're in a bubble now in the market is too expensive and that it's overvalued how does that play into all of your thesis or is that even something to be concerned about yeah I mean it's definitely possible it's really we're we're living in a very difficult time to assess what's coming in like 24 months which is crazy like if you went back 15 20 years ago we can tell you exactly what's coming in 24 months you could look at all the Technologies and you can be like there's no way this technology is going to grow more than this much in two years now try to assess the next 24 months do you have a clue do I can't even imagine nobody knows what's going to happen in the next 24 months so we're living in a period of time where technology and Innovation are accelerating at such a rapid Pace that it's become almost impossible to predict what our world is going to look like in just two years time so could we be in a bubble yeah we could be but we could also not even remotely be in a bubble when it comes to some of these new sectors like AI robotics right the if you think about the con rtion of of like productivity like what what happens to a company like Amazon if they have infinite physical labor just what what what happens to a company like that you know Amazon Works off a very small margins what happens if they can operate at meaningfully higher margins like could you imagine like Amazon could be 10 times the size it is today so we could be in an overall bubble there might be a lot of companies that get crushed because of this new world that don't survive it I you know I did we did an episode on Dum money where it was like talking about all the SAS companies software companies like will any of these survive could we see a day in like 10 years where all the big SAS companies basically go away like Doc you sign and Salesforce the list goes on and on well cou well couple of these companies innovate with AI so aggressively that they become you know valid companies in the future the rest of them just go away and all this gets wrapped up to a very small number of comp like look look at what's happened the last 5 years a small number of companies have assessed all the market cap does that continue maybe if so maybe maybe both things are right maybe we're in a bubble for a lot of companies but for other companies we're nowhere near where they're going to end up in like 10 years where does Bitcoin fit into all of this and what is your thought onit man Bitcoin is one of those things I I I'm always a guy it's like I'll never pretend to like know everything and I've thought so much about Bitcoin over the past 10 years and I always come to the same conclusion I just don't know I don't have any thesis on bitcoin except for one and it's a strong thesis and it has nothing to do with the viability of Bitcoin or whether it should be higher or lower or whether it will actually be meaningful to our society over the next 20 years or be completely irrelevant my thesis revolves around the fact that the Young Generation does believe in crypto and Bitcoin period period whether they should or shouldn't does not matter as an investor they do in my generation we had gold bugs and I always made fun of them okay I was actually sitting next to to Steve Forbes a couple months ago at lunch and I was making fun of gold bugs to the table completely forgetting that he is the biggest gold bug ever I was so embarrassed and we had a laugh over it but I was like and and I told him I was like I was like Steve I was like the gold bugs used to be weird people you're a weird I told him like you're a weird guy dude like like gold bugs have always been weird old guys you know they're like with these and they're like oh you know inflation blah blah blah I was like now it's no it's not weird to be a Bitcoin guy in fact it's cool to be one it's generally accepted in fact the entire Young Generation are all crypto guys I run I speak to them every day right so you're going to have what 80 trillion 100 I've seen numbers as high as $115 trillion dollar of wealth transferred over the next couple decades two and a half decades as that wealth gets transferred over it is undeniable that a decent portion of that younger generation is going to choose to have some portion of their portfolio or their wealth either directly if they're managing themselves or their wealth manager is going to do it for them who are also young because everyone's younger right in the Next Generation and now that we've institutionalized these products I don't see how Bitcoin doesn't continue to massively grow just as a result of wealth transfer and nothing else nothing else that's my thesis that's why I'm aggressively invested in Bitcoin I'm still worried about the safety of Bitcoin right the security of it Willow is like one example it's not it's not unsafe now it's not unsecure now but things are going to have to to happen over the next 10 or 15 years to keep it a secure asset class I'm also concerned about regulatory but right now the regulatory environment looks good so unless that changes that's not a concern for me so right now all I know is that every year more young people are going to get wealthier and more older people I hate to say it are no longer going to be holding their wealth right they're going to you know what old people do you know they get older and then they go away I mean it's just the reality of Our Lives and that is the is that not the only thesis that matters at the end of the day yeah so like we don't have to overthink Bitcoin so how could somebody watching F in your footsteps where would you recommend they start I mean I I wrote I have that old book I I think my publisher pays me like a quarter every time they sell it's out of print now you can still buy them on Amazon it it is is still a valid book it's laughing at Wall Street it's the name of my book from 2010 um obviously we have Dum money Dum money live my Twitter account Chris Camilo um but I've done so many podcasts like this I've done so many interviews if you want to go down this the social ARB kind of rabbit hole um there's a ton of content on social ARB out there now uh honestly my favorite is the chapter that Jack schagger wrote about me in unknown Market Wizards which is a book that's come out every eight or nine years about the top traders in the world he wrote a 34-page chapter about my style of investing and in that chapter he did a better job explaining what I do than I can explain myself somehow he just a better writer I guess than I am um so you can read about social ARB trading but at the end of the day you just have to start just do it and and here's my biggest thing I want to talk about the the biggest the biggest thing that separates those with a lot of wealth from those that don't have wealth is risk Capital people don't think they can afford to have risk capital in their life and that's just wrong so like I turned in 3 years I turn 20,000 into 2 million that's 100 times your money no not everyone's going to be able to do that but you can do that over 20 30 years definitely but you could only do it if you are aggressively investing that money in things you really believe in what's the difference between that and gambling that's where my mind G it's not like everything that we talked about did it sound like gambling or did it sound like intuitively paying attention to the world a big difference between you who I think is way smarter than the I'm not I barely graduated high school you got to remember that I told you that like I'm not I think a well here's here's the difference is that I think you look at it from a very logical standpoint and most people do not go in with the passion that you do for finding those opportunities most people go in for the sole purpose of getting rich as quickly as possible while while you know operating on fear yeah and it's the fear of I don't want to lose my money or I'm going to fear of missing out on this and I'm going to go and throw my money in that oh it didn't work sell or something's going up oh I don't want to miss out on that byy all all I can say is there are people that have been following my story now for like I don't know 12 years following us on YouTube for eight years they are just regular people some of them are UPS drivers some of them are dentist um some of them are you know Homemakers uh every profession in my community and I've watched them literally over years go from being totally intimidated by investing like doing all the stupid stuff to now just finding things in their everyday life that they are like this is a big deal for this company and then putting a lot of money in it and and I'm and they they text me all the time they DM me they share they're like Chris you're not going to believe how much money I made this year I literally for the first time in my life I made half as much money from my brokerage account than I made for my real job I'm like I know I remember I was there and then one year you're going to make more and then you're going be like how the hell this happen you were just a regular Joe and like 12 years later you're making hundreds of thousands dollar a year from your portfolio I know for a fact that every any human on earth can do what I do because I've seen it not just from me I've seen it amongst all these normal regular just normies that have done it Watch YouTube Watch don't watch the guys that are Hawking stuff on you but like actually watch people that talk about real things on YouTube you watch me um just do it it's not hard I'm read my book if you want I mean just do it just start investing the thing is you have to immerse yourself in this world there's nothing more important guys there's nothing more important than being part of the investor class for one's Financial life you it's not an option it's not like should I start investing oh it's not a question you better darn start investing right now you better go get a Robin Hood account or get whatever right just start doing it I promise you don't do anything stupid no meme coins all that stuff right just invest in companies live your life start connecting dots start looking for Trends start looking for like how is culture evolving how is consumerism changing look like we as normal people have our like feet in the real world in a way that people on Wall Street just don't we see things before them we we are we the market is rigged in our advantage because we can see the world changing in a way that people that work on Wall Street just can't they're reading data that's weeks and months old we're seeing it evolve in real time and just start doing it make mistakes lose a little money here and there right no big deal so what then to you separates the people that are successful at investing versus the people that fail at it you just have a have to have a long-term mindset you have to know that you're not good at have you ever been good at anything when you first started like but at the end of the day as long as you're putting money in the market and not doing crazy weird stuff I don't know how you I literally don't know how you lose over the long term like like if you're not doing weird crazy stuff you're I don't know how you freaking lose at this game it's just a matter of how big you win and and the more you do it the more aggressive you get the more comfortable you get you're like you know what I just made all that money because I saw that this Apple phone was going to be a big deal and no one else realized it and next time I'm going to put more money in next time I'm going to add a few stock options I'm going to learn how to do stock options I'm going to put a little bit of Leverage in right you're like you have to bucket your money that's the big thing nobody knows how to bucket their money if every individual on earth needs to have a big money account where they take money that is not their retirement not for vacations not for Education take money that they ordinarily would have blown on something random right and say you know what is it worth me clipping a $2 coupon n maybe not but if you look at that every dollar like $100 if that $2 coupon is $200 is it worth clipping now see I think of every dollar like $100 because I know I can take that dollar invest it aggressively like rich people do and and grow it 100x over some period of time if you think like that all of a sudden you find yourself clipping coupons all of a sudden you find yourself mowing your own grass because you're going to take that money that you save by mowing your own grass and you're going to put it in that big money account not your normal brokerage account but an account where you get to invest like wealthy people do not worrying about it not worrying about losing it right maybe there's a startup maybe there's a guy in your from your college or from your work who's really smart and doing ambitious things look for those people in your life are they starting a company go start hanging out at your local startup accelerator listening to really like you know there's people in life they're out there doing crazy things right they're just working harder than everyone else they're taking big risks they're starting companies you every major city has like an incubator where you can go listen to Founders talk and you could start meeting entrepreneurs just like meet them just maybe you start investing in startups you know hit one startup that could be 200 times your money right you so like but that's the world that anybody can be in if they want to be in it you don't have to be wealthy to be in that world you don't have to invest you can just start hanging out with those people and speaking to them meanwhile you're cut you're do you know you're mowing your own lawn you're clipping coupons and instead of like I always say like hey you want to buy the $800 TV would you wait a year and instead of $800 I guarantee that TV will be 600 bucks like well N 200 bucks I'd rather have the TV this whole year but what if that $200 is 20K now would you wait a year well I'd wait a year for 20K all of a sudden you're going to start delaying purchases to save a little bit of money so all the stuff that you talk about doing becomes a lot more interesting like a lot of people might look at the stuff that you do and be like Graham is too Frugal for me man I'm just not doing it I don't care about saving a buck here or there but if every one of those dollars is $100 all of a sudden they start doing all the stuff that you say to do you know how you have all those YouTube accounts of people talking how to save money in a million different ways that all of a sudden becomes really appealing if every one of those dollars is 100 bucks and if so if you take that money I call it other people's money it's money that was never yours you were going to spend it or you going to give it to someone else but you made a decision to get your haircut every four weeks or five weeks instead of every three weeks you save a little bit of money there but that money goes in your big money account and that money you use to aggressively invest you're not like investing in the S&P 500 you're investing in individual stocks or maybe a little controversial maybe you invest with leverage maybe you invest on margin you know maybe you buy Maybe Jack tell me tell me more how can I borrow even more but here's the thing if you're borrowing money that's part of your retirement account maybe that's a problem if you're borrowing money that's in an account that's designed to be highrisk high reward right I have that account like everyone should have that account even if it starts with only $5 in it cuz it's shocking how large how quickly that account can grow over time shocking believe me I I I've seen it not in my own account but like in all these other accounts and people my community and like I don't do coaching I don't take like I don't generate you know this I don't generate any money from my community I don't do any of that stuff like I don't sell a single thing to anyone I'm just like dude I'll tell you what I'm investing in if if you share your ideas with me I'll share them with you and by the way I made more money from YouTube people don't realize this I made more money from YouTube than almost any YouTuber but I make no money from YouTube advertising or sponsorship I've never taken a sponsorship but the ideas that I get from my community on stocks I've probably made $40 million from you know so it's like I I I I extract value out of the ideas that people that watch our Channel and comment that's sounds kind of weird right but like the community is what I make money off of like their ideas honestly Your Enthusiasm gets me so pumped up like we're filming this right now it's midnight it's midnight I'm ready to load up a Robin Hood account right now on a Monday night and I'm like pumped right now wait till you see the robots man when you see the robots you are really going to get checked um no it it's it I want everybody listen if there was one word of advice I'd have for people right now it's do your homework on robots do your homework on humanoids just do your homework watch the videos just do your homework go out don't listen to me spend 30 hours just researching humanoid Bots and watch the channels there are a few really cool like YouTube channels that are tracking this stuff watch them so that you're mentally prepared if and when you choose to make an investment and whether it's Tesla for their humanoids or some other company could you yeah could you do us a favor could you send me the best resources that someone could look at for humanoid robots and we'll actually link them them in the description uh Michael sailor gave us a whole bunch of resources that people could look at for Bitcoin and he listed them out like go look at this and this and this and this and watch this video we'll link to that in the description and just make it easy on someone that if they want to learn just tell us the best resources that the average person could just go read or watch or listen to something these guys are my friends I'll list them for you yeah thank you absolutely I'm curious how you balance doing all of this with Al also having a family and two kids oh it's easy because like I you have to remember that it this is I trade on this like I don't have screens I don't study finan like I just have fun with it right so it's like it's the easiest social arbit trading is the easiest thing in the world to do because I can do it in the middle of the night right I told you after my kids go to bed at 10: is when I do most of my research like 10 10:00 p.m. to 2: a.m. um I'm not totally consumed I don't want I don't read The Wall Street Journal I don't watch CNBC I don't like I'm not on stock boards and stuff like that I don't trade I don't have to like I don't care if the Market's open or shut like I don't even check my account some days Believe It or Not people are like Blown Away by that I'm like there are days when I don't even check my brokerage account in fact one thing I suggest everyone does is try to go three days without checking your broker's account it is the greatest thing you'll ever do in your life just go three days don't check it you might be up you might be down um you don't need to look at your stocks you don't need to do it occasionally do you really don't need to do it like with my type of investing there's nothing that's going to happen day in or day out that I need to be looking at my stocks how often do you check your brokage account multiple times a day course but In fairness I wake up and it's my routine before I get out of bed I buy stocks I buy uh index basically I buy three ETFs every morning in the same amount no matter what before I get out of bed and then I like to check them throughout you're you're pouring more money into equities which is like the most genius thing anybody can do like if you just do that in fact we should do a whole episode sometime about uh the triple leveraged uh ETS Cuz We There Is We did an episode years ago on this and we did a ton of research and we have a really strong thesis on this that it might might actually be the best investment that anybody ever make over long term it it works when it works and it doesn't when it doesn't that's because I've looked into the same thing there's like a 2X because technically the best investment over a 20-year time frame was like a 2 to 3x leveraged S&P 500 and the draw Downs were significant but the upside was massive but my point being is that like maybe there's there's a theory over the next 10 years if we see a stagnant Market or a loss decade where we see decade over decade minus 10% from where we are today that is going to crush you yes that is true that is true but um generally the concept is if you have a lost decade and you're continuing to contrib to it over time period that when it eventually comes so it's all about time it's all about duration your time duration right and it h it's only right for people that have a Ultra long time duration and I think there's always going to be some level of risk reward but if you have a designated bucket for that you understand the tail risk involved with that and your duration is really long and you don't want to spend the time to stock pick there's something about that because if you look at the history of it it's f I could see that potentially making sense if someone's in their 20s not planning to retire until 60 and they're disciplined enough not to sell and to keep contributing no matter what and like you said basically just not check their account but just like every month throwing whatever they do it's not a total portfolio of philosophy right it's not something you don't want to have your whole portfolio in that strategy but there's something really interesting in it as a way to supercharge returns with a bucket with a bucket of money um I'm kind of fascinated by it and I'm also a True Believer in just like the asset classes over the long term yeah there are some scenarios like Japan and whatnot where you have L decades there there are risk factors tell risk anyway but I'm just Ultra conservative like I still I buy treasuries I have the taxfree muni bonds I I incorporate everything in M but do you have Graham do you have a uh a highrisk bucket no that's a problem that's a real I don't think so I'm I'm happy just like if if I could just lock in 5% a year I'd be thrilled for the next 20 years I'd be set I'm so happy with that but you don't know the degree of Happiness of having a highrisk bucket it's so fun but it has to be bucketed you have to be able to bucket it separately so you have a you have to develop a different mentality around what that bucket is for for me that's a Bitcoin ETF so that that that guess is my high-risk bucket but I see that as like a 20year it could go to zero or it could yeah be something but I like the Bitcoin ETFs was very easy I buy in Risk risk capital is magical it's the one thing that I paid attention to my whole life and I look at all the wealthiest people in my network and so many of them have done nothing but have risk Capital that's all they've had that's all could that be survivorship bias uh Perhaps Perhaps yeah and that's a that's an important that's an important Factor but risk capital is almost a necessity to building great great wealth um over some reasonable period of time and obviously it's what you do with it right but if you don't even have it it's like you're not even in the game so I just think it's really important for people to find a way to have risk capital and to properly bucket that as risk capital and not interm inle intermingle the risk Capital with other capital in what percentage like if someone let's say hypothetically has a million dollar that's that's their net worth between a house savings 401K investing taxable like what percentage of that should be allocated to risk capital in your opinion yeah I don't think I would never answer a question generically because every individual is totally different right so it's like when you say a million dollars you can have a person the answer should be zero in that case in other cases it could be 50% cuz every person has a different level of a different objective in life right like I'll give you an example like for me I have a very strong objective to build a billion doll foundation for Pediatric cancer leukemia and autism right and so for me it makes sense for me to have a very large risk Capital bucket because it's the only way I'm going to achieve that life goal another person like Dave for example I tried to get Dave to put more money into one of our robot companies I was like I don't understand Dave you have all the same information that I have right now why are you not putting more money and he his answer like really threw me off it made a lot of sense he was like I don't I don't know what I would do with the money he's like he's like why would I put more money at risk when I get no benefit from having the additional Capital if if what we think is going to happen happens like I wouldn't do anything with that money I have no objective for that extra money Chris so there's no reason for me to even do that and I was like I was like it reminded me that we all have different like goals and like now we all think differently like he has zero need to build Wealth Beyond what he already has he just wants to live his I told you he's not here he's in Africa you know he's just having a great life he a great happy travels wakes up no kids just get sleep in every morning just a very low he just nice friendly meanwhile when he went off to Africa I had to drive four boys to a Zach Bryan concert in Tulsa which was a 5H hour drive in the rain last Friday night got two hours sleep because they kept me up all night throwing Crocs in the room over my bed and then at 6:30 in the morning drive them home cuz a couple of them had a robot do that for you I know right but like that's the difference between my life and Dave's life like polar opposite but you know what I loved it man I loved it it was ridiculous but it was it was chaotic I still not recovered from not having sleep that weekend but uh how do you make sure your kids don't grow up spoiled man I think about that every day that's the one thing I think about more than anything else wealth destroys lives if if it's not properly managed I do not want to steal that from my kids like my greatest moments in life I I have a picture of me and my wife uh with our first washing machine and dryer and I remember that like it was yesterday we were so proud that we can afford to buy our own washer and dryer we got it from my Costco it was a photograph of it and then like her parents got us a mini washer and dryer like miniature thing that we put on the Shelf I was like how stupid was that but like we were so happy like that buying that washer dryer set was so happy I was like there are so many kids that will never experience the joy of making a purchase like that because by the time they're like 18 like what like I'm just would have that right I was like I never want to steal that Joy from my kids so I will never give them anything like honestly like that that's my goal is to like now I don't get to choose that cuz when you're married you don't get to like unilaterally make choices and so I have very strong opinions but I'm only half of that decision right my wife so like we haven't quite figured it all out but the one thing I love that I think a lot of people don't appreciate are charitable foundations so all these people that have trust funds that are managed by attorneys and you have to be managed all this BS like the magical thing about having a charitable Foundation is you can grow it as large as you want it will never go anywhere it will always grow and it grows tax-free which is super cool and you're allowed to take a reasonable compensation for managing the foundation for allocating the 5% that has to get distributed every year and for choosing you know what mutual funds it's in right and so you could allow your children to take over a charitable Foundation that you've set up and they legally can only take a reasonable salary for the rest of their life and health insurance legally if they ever take more than that they can go to prison so it's like this beautiful thing that exists that I think is a really good tool if you want to ensure that your kids are not going to go destitute that they can have health insurance that they can kind of take a reasonable salary but probably not nearly enough that would keep them happy in life and it's something that they don't have to do as a full-time job they're still motivated to go out and build a life for themselves and build careers to generate real money for themselves and learn how to invest but they do have somewhat of like a back stop there right and my big issue guys is that it's not like it used to be I think the future generation of the Hales and the have knots are no longer kids that just worked really hard and got into really good careers I hate to say this I think the future generation have Have and Have Nots are the ones that inherit the most because when you look going back to that conversation about the what 80 trillion now some people are saying 115 trillion cuz the inflation keeps popping up when you think about either getting a few million bucks or not getting a few million bucks that's the difference between the next generation of kids that are either living this life or living this life that kills me it never used to be like that never there were the kids that had like trust funds were like far and few between back in my day like I didn't even know anyone that had a I remember I met the first kid that had a trust fun when I went to SMU no surprise right but even then there weren't that many kids at SMU which is like one of the wealthiest schools in the country that had hedge funds in my circle now like I look at my neighbors like in my neighborhood which is a really nice neighborhood and I like hear a lot of the parents talking about TR like does do all your kids have trust funds like what the [ __ ] is going on like is that like just normal now and I'm starting to realize that like it's not even just a trust fund like the inheritances are insane like think about how many people are multi-millionaires now like just regular people in Ohio just through the appreciation of their house okay so your parents either have a house that's worth one 1.2 million and you're going to get that that value or you don't like that could be the biggest differentiator for the Next Generation that's very weird a lot of that's going to be sold for end of Life Care depending on how long people live medical ailments maybe not I don't think so I mean yes some of it will be some of it will be you're right some of it will be but I'm not quite sure that much of it will be cuz we still have health insurance like there's still insurance right so that does take care of most end of Life Care maybe not as good as some people would like it to be um I think we're entering a new age of Have and Have Nots purely based on class system based on the degree of inheritance you get when your family dies I I TR I think about this all the time and the reason for that is I was like I've always had this thought that I would give my kids zero but like if I give them zero am I real like it's not like it because in my world it's like you work hard you get a good job and you build your life slowly over time that's the that's the environment I grew up in but what if that doesn't exist in 20 years you know what I'm saying like what if that doesn't exist and like the majority of people in America are getting some level of inheritance and I was too rigid you know what I'm saying like so you have to kind of factor all that stuff in and it's it's a lot to think about when you become a parent cuz it's a a big decision to make you don't want to ruin your kids' lives by stealing Joy from them of achieving things on their own but if the world is changing and like our economy is changing such that it's normalized that everybody has a starting point that's here inste CU we all started here we literally start all ramen noodles like dude my first apartment was like 400 something a month like I I literally didn't have a car for a while cuz it broke down and I couldn't fix it I was taking buses to you know like that's how it was in my day like but that's just not how it is anymore and as much as I hate that that's just life so you can't fight the truth and so maybe there is an a starting point that is a reasonable starting point that you should think about allowing or permitting your kids to start at that starting point is that an inheritance is it a trust fund is it a is it taking over a foundation where they can earn income I'm still trying me and my we're still trying to figure it out don't have the answer the one thing I've found is that a lot of the parents that are wealthy that we have on the podcast their kids turn out so well when the kids start working for the parents or under them different jobs or careers and the parents put them to work like your children you could have them come up with their own investing strategies yeah give them hey you get $1,000 because you helped me on this thing you earned $1,000 from this figure out where to invest it let's do it together oh you lost it where did you go wrong on that how could you learn from that uh like Ben mlles kid such a standup act and he's like working with Ben on these properties and like being there with contractors or Grant cardone's daughter my gosh Sabrina she's going and speaking at his gigs and like you know doing sales calls it's like it's really impressive what he's kind of thrown her into this and she loves it they also seem to have a lot of interest in that though oh that's true think it would be hard to okay I was going to say that yeah uh guys that's my dream I would love to deal with my kids so much you have no idea like I see I I see Grant Cardone and I'm like oh that great Rel I was like by the way like I have an awesome relationship but it's not that maybe they're 14 right maybe it's too early and I don't want to push them too hard because like I feel if I push them too hard too early they will revolt against it and so like I want them to come to me if they if there's ever a point where I can engage with them like that professionally especially as it relates to investing you believe me I think about all that I want I want it really bad but I I listen I also pushed them to watch Goonies when they were way too young and they were like they didn't love it I'm like oh we we pushed on them too young I should have waited a couple more years so like now I'm really careful to like let them live their life and let them like pursue what they want to pursue and let them come to me and I would love to have that day they're probably the best trend setters out there like whatever they're into chances are if they get in early enough yeah yeah lastly what is the secret to a healthy and happy marriage oh wow that that's a that's a tough one man I think you're always still trying to figure it out like I don't think anyone like ever has the ultimate answer like I've been married for a long time and I have a lot of friends been married a long time and a lot of divorces and I feel like you're always just trying to figure it out but I I would say what's really important is you have to find peace with yourself you know like you have to find peace with yourself um I think you got to work more on yourself than your marriage I think if people are working on themselves and they're happy intuitively happy and they have a sense of purpose and they have like a positive happy life for themselves I think it makes it a lot easier for you to like come together in that way as a marriage um because you could focus on all the relationship stuff and that's important but I think a lot of the core problems come from that are that they internal problems that one of the people in the marriage have right so you both have to support each other and like pursue your own thing whatever that means it's like it's different for every single person right um but a lot of the people I look at that have had failed marriages like I realize that like they were not in a good place themsel like forget about the marriage part cuz you can never get in front of someone in between someone 's marriage to know what's happening but the individual person was not in a good place was it one or both of them it could be one it could be one I think you both have to be in a good place right so like if you have one person that's not in a good place that could destroy everything um but I don't have all the answers guys when it comes that is like the hardest qu that is such that is such a hard like I I've always like pride myself to say like to not pretend I know things that I don't know and I honestly I still like in addition to my own relationship and stuff which you're always working on it it never ends there you're never like Hey we're good for in perpetuity forever it's always like you're always working on it um I watch because I'm on Tik Tok so much like I watch a lot of relationship Tik Tok like a Tik Tok of the Sexes you know a lot of male anti-female TI talk a lot of female anti I love I don't know what it is I love watching it and I'm just like gosh it's I mean there's just like I don't know how to solve this problem it's a huge problem right now humanoid robots e expect I think expectations too I think if I if I had to answer your question keep your expectations reasonable for humans that's fair just humans for I I would say one thing I'm really good at is I have great relationship with my friends like going all the way back to high school like my wife can't she's like I can't believe you're still so close with all of those friends from high school and college they're like some of them are so crazy and some I'm like you know what I accept them and I have reasonable expectations for my friends right and I a lot of times women will have expectations for their friends that are like here that can never be met like I think having reasonable expectations for your friends for your spouse for your kids um for your business associates and not like expecting them to do things that are just unreasonable cuz like we're all different at the end of the day right like a lot of this conversation has been like we don't all think the same we don't all want the same things I can't tell you what to do with a million dollars because your million might have a very different objective from your million because you might want very different things from him he might be like hey if I don't if I don't if I'm not a billionaire I'm not happy if I'm not on my way to becoming a billionaire I'm not happy you may be like I don't even want that so like you you can't have the same financial plan every everyone's financial plan needs to be totally different um one thing I do like for people in terms of financial plan I only manage one person's money in my whole life it's my parents money and I love this concept Asim TB talked about it a little bit um I think was like Black Swan uh but it's this barbell theory of investing where you don't ever invest in anything in the middle I know you're in lots of middle stuff but like you literally only invest in two things you invest at the at the opposite spectrums so you have extreme risk risk assets which are basically just growth Equity high growth equities and then you have Treasury and nothing else in between and the concept is that everything that sits in between has a tail rist that the market under appreciates or doesn't fully acknowledge meaning there's always going to be some event that we can anticipate that has the capacity to take down municipal bonds we just have't seen it yet right there was there's some tail risk event that could take down everything in the middle so why don't we invest the money that we needs to be safe in the safest thing that we know exists like a or treasury like a Tre you know a treasury is going to generate this much interest right and then you invest the rest of your money in in the world and the world continuing to go on like it always has and growing which would be growth assets growth Equity right technology yeah um and as long as we don't have some weird thing happen that is going to continue to grow excessively and then this is going to be what it is so the only decision you ever have to make is how much I put at this end of the barbell and how much I put this into the barbell what I love about that it's not good for me but for people like my parents they don't have to think about anything the only thing they ever to think about is 7:30 6040 5050 4060 and as you age it becomes more as your timeline get smaller maybe you shift more of it over here yeah right and it's like it's the simplest money management like wealth management strategy that nobody ever does nobody does this everybody overthinks everything and over complicates it how much should I have in bonds how much should I have in this asset class how much should I have in real estate how much like what if you just stuck with the safest thing in the world and the least safest thing asset class and just invested in those two things and all you got to do is configure how much goes in each I love it for like a certain type of person love it thank you so much yeah this has been an incred Tony Hawk this has been Tony Hawk thank you about how about how about Jeremy Piven that I got thank you so much for coming on we really appreciate we're definitely going to have to do a part two because I do want to talk about those leveraged index funds absolutely s muffs Jack they have they have white papers on it you can go deep you can go really really deep we're going to link everything down below in the description along with your YouTube channel as well this is fun and the resources that you said to yeah absolutely everything is going to be in the description thank you so much like subscribe if you haven't done it already and until next time