The Man Who Turned $20k Into $60M Reveals The Strategy That BEATS Wall Street, Predictions For The Future & What To Invest In NOW

0:28Welcome back, my friends. our relationship and all the tools and the things that we have done over the past four years to strengthen our relationship before getting married, now being married, and so on. So if you're looking for more advice around that, make sure to check that out. We went pretty deep for almost two hours. So check out that episode. And again, big thank you. I'm very excited to be a dad in the near future. But this episode is all about really how to optimize our financial opportunities. And since I had Chris on the first episode, I took his advice. And I kid you not, I went deeper in my investing strategy.

1:05And as of today, my investments are up, it looks like 24.78 % right now. So since the last episode, I took action on the things that he said. Now, this doesn't mean you're guaranteed to make a lot of money overnight or something like that. But he really talked about really getting started and going more all in on investing, no matter who you are, no matter how much you have starting to invest. And in this episode, he's really talking about spotting the trends before everyone else. How do we spot the trends before everyone else? That means you might have to be patient for a while until you see returns and also how AI is quickly changing the world with investing in so many other things.

1:51Chris shares his journey of turning small investments into millions, not through insider tips, but by analyzing public information and cultural shifts happening in real time, all things that you can do right now. And there's literally something that I did with one of my investments that jumped up 20 point something percent in the last month since I had this conversation with him. Now, again, this doesn't mean there's not risk in making investments. I've made investments in the past that have gone down to zero. But here he talks about how to spot these trends publicly for your personal financial gain.

2:28Also, why the rise of AI is the biggest shift in democratizing intelligence and financial freedom in the step-by-step method for identifying when to buy and when to sell stocks based on real world signals. So this is going to be a powerful one. And again, how you can invest literally 10, 20, 30 bucks today can help lead to long-term wealth if you start with the right mindset and habits. We cover all this and so much more in today's episode. If you're enjoying it, make sure to share it with a friend or two. If this is your first time here and you haven't subscribed yet, make sure to click the follow button on Apple Podcasts or Spotify.

3:06I'm so grateful that you're here. And let's go ahead and dive into this episode with Chris Camillo. So this is actually where AI comes in pretty cool, right? You could also ask ChatGPT. So I was going to say, you can find some change that's happening in the world, and you could go and ChatGPT and say, hey, this is happening. What publicly traded companies are likely to benefit from this? That's interesting. And it will actually tell you. I used to spend like four days figuring that information out myself. Now you can just ask ChatGPT. Have you done this yet? I'm doing it now. Yeah, I'm doing it now.

3:40And it helps. It's like a tool. It's a tool. Could you give an example of what that would look like? Is there something you've been researching or seeing trends happening right now? Can we do a live example? I don't know if you could even see what it would give you, and then you could see on ChatGPT whether you think that's accurate or not. Yeah. So, I mean, let's talk about - Do you have your phone? I'm curious if we do a live example because I think it would be interesting. Let's talk about what is actually - Okay. this is a good one. I'd love to see what you've been noticing or comments you've seen on TikTok where you'd say, okay, what publicly traded companies would be impacted by this?

4:21Yeah. So one example. Because again, I want to simplify this for people because I think it's still scary for them to understand. Yeah. I do this every day. It's what, this is my entire life. Okay. This is my entire life, like seeing something and then being like who would benefit or not benefit so like one of them might be you know a heat wave right so the last few and i thought of this because i was like it's really cold in the studio so i'm like i'm like you know we've had some really wild this has been like some wild heat waves right so one of them it might be uh you could just ask chat i'll ask Chachupita right now.

5:05I'll be like, I'm going to say, hey. This is interesting. Okay. We are experiencing the biggest heat wave in history in the United States. What publicly traded companies would benefit and which publicly traded companies would be harmed by this heat wave. That's interesting. See what it says. I'm going to put that in and let's just see what it says.

5:40And this is not going to be an end all, but it's a starting point. So it lists out, obviously it lists out all the HVAC manufacturers, carrier, train, Linux, and it says HVAC manufacturers experiencing increased demand for cooling, Home Depot and Lowe's, higher sales of fans AC related products. Generac. Generac manufacturing benefits from increased power outages due to heat stress on the grid. That's been one of my biggest heat wave trades actually. So it's cool that it got it. Edgewell Personal Care. Producer of some protection products like Banana Boat, Hawaiian Tropic, and Heat Waves. Companies that would be harmed.

6:17Walt Disney and Six Flags. Theme park operators facing reduced attendance due to extreme heat. Insurance companies facing extreme claims from heat related damages. utility and energy companies struggling with grid reliability, agriculture experiencing crop stress and reduced yields due to prolonged heat. So like I literally go, this is what I do every day. And what's really interesting is, so once you find the companies, that's just the first part. Okay. You have to really determine, is this information actually likely to move the needle for them? and so if a company is like you know it for example you might find a snack that's trending okay this happens all the time there's like a really hot snack or a hot cookie or something's happening and you're like oh this is going to crush it in fact this just happened recently with that water that water company that went viral didn't you see this oh yeah the water the blue water bottle the blue water bottle okay saratoga i think it is saratoga so i just did this with Saratoga.

7:23I was like, I was like, well, Ashton Hall, I think his name is the viral creator. Who's like, yeah. Every video is just crushing. Saratoga went nuts. Well, Saratoga is manufactured by a publicly traded company, but that publicly traded company manufactures a bunch of really big bottled water companies that are like a hundred X the size of Saratoga. So the truth is, I think Saratoga was like 1 % of their sales. So even if they double sales of Saratoga, it's not going to make a real difference. And so you have to do the research to figure that out. Now, if that was a publicly traded company on its own, it would be more interesting to invest in.

8:04Huge. That would be huge. Okay. So that's exactly what you're looking for. Is it going to, and by the way, there's a little bit of a science, a little bit of an art, you do some research, right? Like this is where you learn, you get better over time. But by the way, you don't have to do it alone. You have friends in your life that you can ask other people, like, hey, can you help me with this? By the way, like, we have a community, dumbmoney.tv, right? Like, we have a Discord. Like, we literally help each other with this stuff all the time. Are you in your Discord just telling people, I'm doing this trade today or I'm getting in, I'm getting out?

8:37No. No, we don't really discuss trades. What we discuss is change. Trends. Yeah. So we're like, hey, just saw this. I think it might positively impact this company. What do you guys think? And then we just help each other, right? And so - But you're not saying this is what I'm doing today or tomorrow. Then once we all do our own research and we all collaborate, and a lot of times we go out and we interview stores. Like if it's like a product in a store, like we'll take videos, we'll take - Like we just aggregate research. And we help each other because it's us versus Wall Street, right? So we're like a big hedge fund of just regular people.

9:15We have UPS drivers. We have just all kinds of people in our network. And if you don't want to be in our community, just do it with your friends, right? Yeah, yeah. But once you find something that is going to... And then we go off and make our own trades. But you don't share them. No, we don't discuss them. Because everyone has their own risk tolerance. Yeah, yeah, yeah. Everyone makes their own decisions. Like the last thing I want to do is people copying my trades. And I don't want to copy other people's trades. because then you don't get smarter. And also my risk tolerance is like really, really high.

9:45So like you don't want to copy me. Your risk tolerance probably isn't as high as mine. So, but once, find the change in the world, connect the dots to companies that would benefit or sectors that would benefit from it or be hard. Find out if it's going to actually move the needle. Then you have to determine if there's something else happening to that company during that window of time, you think it's going to impact them that is more important to that company than this thing that you found. Okay? So there might be a company going through that's being prosecuted by the government. And that prosecution is all that investors care about right now.

10:24So the fact they have a trending product that's going to increase their sales by 3 % or 4 % is not going to move the needle relative to the fact that, you know, the FTC is about to bury them. So, like, you just got to go through the motions of figuring out what's important. The way that you do that is you read earnings reports and you kind of read news stories on the company and you're like, what's going on? Then you need to figure out, does the rest of the world know about what I just found out? Are they connecting the dots yet? Do they know about this crazy heat? Like when we had the big freeze in Texas a few years ago, remember that crazy freeze?

10:57Yeah. All the pipes broke. Yeah. Okay. All the swimming pool equipment broke and everyone had to buy new swimming pool equipment. and the pool companies went nuts, right? And so I was like, did people know about that yet? Because I'm in Texas. I live in Texas. I knew about it like immediately. I had a pool, pool equipment's gone. All my friends all have to get new pool equipment. How long is it going to take you to get new pool equipment? Like six months. Because they're literally sold out of pool equipment. Well, who makes pool equipment? I'm investing in them, right? And which is what we did.

11:33And, but has the rest of the world caught onto this yet? Has Wall Street, right? And so you have to figure out if they're seeing it yet. So you're like, are there news articles about this yet? Are they talking about in the Wall Street Journal? If I go look under all the articles, are they talking about it in the earnings report? Is there chatter on like, on like X Twitter or stock twits, right? Are investors that are retail investors talking about this yet? And if no one else is talking about it, there's a decent chance that you might have discovered something and connected the dots quicker than everybody else.

12:11And that's what you want. And so once you kind of go through, and again, if you want to go deep into my methodology, Jack Schwager did a great job talking about in his book. But that's when you trade. And then when you sell, that's what you're asking me. Okay, so you're trading at the point of information imbalance. When you identified some really big piece of information that is going to impact a company in a really big way that most other people don't know about yet, that's when you trade. That's when you buy the company, right? You sell at the point of information parity, when that information that you discovered is now widely known by other investors.

12:59Often that will be an earnings report when the company comes out. Remember that story I told you earlier about Elf Cosmetics? The company came out and said, guess what? our sales are through the roof because this guy on YouTube did a video and then the stock shot up. And now the information that you had that made you invest in that company, everyone else has it. So you no longer have an inherent advantage over anyone else. So at that moment, if you're going to be a pure social arb investor or kind of investing in conversational data, right? An observational investor, then you sell because like you have no advantage anymore.

13:42What if the stock keeps going up? Well, it might, but it's going up for other reasons, right? So like, now this is not always black and white. So let's say that you think, you know what? Yes, the stock went up, but I think that this is the beginning of something bigger that they're not appreciating it, then you might end up staying in that stock for years. Uh, which is exactly what I did with Amazon, right? Which is exactly what I did with Apple. You know, some of these companies back in the day, just wall, wall street just refused to believe how, how big of the changes. Um, I feel that way right now with artificial intelligence, you know, and I could be wrong, but I made a huge bet on NVIDIA that like literally the week that ChatGPT came out a couple of years ago.

14:34And that's a big part of why my portfolio is up so much last couple of years because I actually went off and like, I did like a bunch of meditation for like a week. It was, I was crazy. I was like this, I started using ChatGPT and I was like, this might be the most interesting thing I've ever done in my life. And the only other thing that ever set me off like that is when I held one of these in my hand for the first time. And this became one of the biggest investments I ever made. People were like, oh, you can only do this with small companies because Wall Street's kind of onto big companies. Nope.

15:09I wrote an entire chapter in my book about this trade. And it was because Wall Street didn't believe in the iPhone when it first came out, mainly because they were biased because they weren't using an iPhone. They didn't get to really hold it. They're using BlackBerry because that's what people in the corporate world in Wall Street use. But also the iPhone was only available on AT &T the first year it came out. That's right. When was this? 2006, 2007? Yes. But AT &T at the time in Manhattan, the type of data infrastructure that it used could not send data through buildings, hardly at all. So almost nobody in Manhattan used AT &T back then.

15:50So it was almost impossible if you lived in Manhattan or worked in Manhattan to have an iPhone at that time because everybody was on Verizon who lived in Manhattan. So that was like an interesting little thing that made it even harder for people on Wall Street to see what was happening, to experience it, because it wasn't even about them using it. It was about people in their network talking about it 24 hours a day because it was so damn revolutionary. Similar to Tesla when they first came out. If you didn't drive one, or if you didn't have someone in your network that made you drive one, you didn't know how crazy special the technology was, right?

16:31So, you know, like, I almost forgot the question you asked me now. When to sell? I mean, you talked about this trade with, you know, this is the biggest thing, AI. Oh, yeah. Sorry. Chat to me. So I used it and I used it a lot that first week. And I was like, dude this is big this this is nuts this is nuts i was like who's gonna benefit from this and i i figured out that nvidia was the obvious beneficiary the picks and shovels right of this whole industry and now nvidia is like so expensive it's like trillions of dollars uh so now it might feel too expensive unless you think that the industry of intelligence ai is just getting started is just getting started and you think it's going to be infinitely bigger than anything else we've ever seen in our lifetime which is what i think so you haven't you haven't sold i might no well i have sold it since and then i've already you know i've been levered in it i've sold it and now i'm getting back into it again now that it's dropped so i i believe that the human mind is not able to fully grasp things that haven't happened before.

17:39Uh, so this is a little bit of what they call black Swan theory. Nassim Taleb wrote that book, uh, back in like 2006, 2005, 2006. And it was all about the fact that like, especially capital markets, like financial markets never really assess value to things that are anomalies that, that, that don't have a history that they can associate with a correlation in the past. It's unknown. It's so unknown. So unknown that they just don't have a way to frame how to value it. We never would have thought we'd have multiple trillion dollar companies right now that we do, right? 10 years ago. I don't think we could wrap our head around having 10 or$20 trillion companies.

18:27I think we're going to get there. And I think there will be a multitude of companies related to the industry of intelligence and the industry of robotics that will be 10, 15, maybe even$20 trillion over the next few decades. And, you know, that's just, that's just what I believe. So I'm happy to still be in companies like NVIDIA. And then the, you know, I'm making huge bets on robot companies right now because of that. So that's become half of my life is investing in robots. So it's, you know, I, How long will it take, though, for some of these companies that are maybe, you know, haven't really launched their products at the highest level yet?

19:11How long will you stay invested until you start to see the gains? It's really hard to time sometimes. Like the robot companies I'm investing in are mostly private. I think we'll have a robot revolution in about five years. So I think you will be consumed by nothing but robot media starting in about 18 months. Really? Yeah, I think it's going to consume humanity. What type of media are we talking about? What do you mean? Just people talking about it more or people like using? We're about to enter the Jetsons age. Like we are going to have human, humanoid robots. Walking around. Initially, because the value of these robots is so high in industry for commercial and industrial use, almost all the allocation of those robots is going to go towards industry.

20:04So also to have them walking around in public, there's a safety element. They won't be there, I don't believe, for 10 years. You're talking about, you know, car manufacturing, you know, restaurant manufacturing, you know, things like that. Warehouses, logistics. We have a job shortage, a human job shortage of like two or 300 million physical laborers that we need to employ by 2030 that we just don't have humans for. Wow. And this will help kind of solve that problem. Probably a bigger problem is like 10 years out when it comes to elder care. We have a massive shortage of people to take care of, older people as the boomers are aging.

20:52It costs$175 ,000 to upwards of$200 ,000 a year to have 24-7 care in your home, to have home aids. And we just simply do not have enough humans to do that. And this is something that is exceptionally important. 100 million people around the world spend the bulk of their prime years taking care of a parent or grandparent. And they don't have careers because of it. Some of them never have families. We don't have it that as much in the U.S., but it does happen. And it's going to happen a lot more the next 20 years as our parents are getting older. And we need to solve that problem. Robots will solve it.

21:32They're going to solve it. So we have demand for billions of humanoid robots around the world simply to take care of the elderly. So that will become a big use case. That's probably the number one use case, but it won't start for about 10 years. Now, I've been up close with a lot of these robots. I'm telling you, it's coming quick. Like the robots are walking, they're functioning, they're articulating. I've seen them move sheet metal. I've seen them do pretty articulate stuff autonomously, by the way. Not programmed, autonomously, like using an AI brain. Like, oh, I see this thing over there. I need to move it over here.

22:09And then I see another one over there that I need to move. Yes. Not just rinse and repeat in the same spot. Correct. One of the robot companies I work most closely with, Aptronic in Austin, is partnered with DeepMind at Google. And Google is developing an AI brain for these bots that would melt your mind. Like, they're accelerating the technology so quickly right now. Wow. I believe we're probably two, maybe three years away from having generalized autonomous robots with full AI brains that can do just about any physical job on Earth. So, no, can they do that, you know, durably? You know, can they do it repetitively with the uptime that we need?

22:56Quality control. That could take a few years to work out. and then the generalized part when you're going to have them in your home doing literally everything I'm talking about doing your laundry doing your dishes cleaning up around the house literally doing almost everything in your home I mean imagine saying hey you know whether it's you or your wife can you just redo the closet for spring and it gets gets out all the spring clothes and just do them in the same exact order that you did last spring by color and this and that. It's just all done. And it knows exactly where to put the clothes up.

23:32I know this sounds insane to you, but I'm telling you they will be able to do that in 10 years, 100 % be able to do that within 10 years. And the cost of these robots to manufacture by then will be sub$50 ,000, and they'll have like a four - to five-year lifespan. So if you think about it, like the use cases from it, it's almost ridiculously cheap when you start thinking about all the things you don't need to do. You know what I'm saying? Because of that. Now, is something like that, that will be used 10 years away, is it worth investing in now, even if it's not going to be maybe successful in 5, 7, 10 years?

24:14For me, it is. I think it's the biggest industry. Like physical labor is a third of global GDP. It's the biggest industry in the world. So, listen, I, like I said, I own restaurants. I cannot get employees. Like, it's almost impossible for us to find employees. Why is it so hard? Because two things. People, listen, our unemployment rate is actually pretty low. It's like 4%, 4.5%, right, right now. People in this country want to do certain types of jobs, not other types of jobs. And I'm not saying that that's good or bad. It's just the reality. So, you know, I, I joke like, like, you know, my kids are 15 and they don't want to work for 40 years in a, uh, manufacturing job.

25:08And I don't want them to, because I don't want them to have the bad back that I have right now. Like, no, no. I mean, these, this is real. Like you work in one of these jobs for 40 years and you're messed up by the time you hit your age 60. So they don't want to do that. They don't want to work in a repetitive physical labor job for their life. And I hate to say, like, almost no young kids in this country do. They won't have to in 10 years with robots taking over all of that. They won't have to. And, like, the one knock that this whole robot revolution people have with it is it will displace human labor.

25:42I'm an optimist, so I'm a little biased. but um at no point in human history has technology a human to placing technology ultimately created more and better not created more and better jobs for humans over the long term yeah and i don't see why it would be any different this time and if you look specifically about what ai and robots will do for the world uh labor is the number one uh bottleneck for industry and having access to more reliable, cheaper, scalable labor will enable all the world's industries to expand much larger than they are today. And it will enable us to have more of that and it will allow us to create new industries we can't even think of today.

26:35So what that means is with more comes more demand for humans, right? It might not be the same job as today. it's probably going to be a job that requires a higher degree of creativity, of sophistication, of engagement at the human mind level. So each company will have less humans, right? Or each entity will have less humans, but there'll be way more entities that need humans, hopefully doing better work that's more interesting, that hopefully pays more too. So hopefully we all win as humans long-term from this. If people working in careers right now or entrepreneurs don't start learning AI or don't start learning how to use AI tools to create better processes, advance their platforms or their businesses, what will happen to those career individuals or entrepreneurs over the next few years?

27:35I think they're going to mean a lot of trouble. Really? Yeah. How big is AI right now? It's everything. everything. And if an employee or an employer is not using it, you think they're going to be far behind? I think they're done. Really? Yeah. I think it's everything. The same way that the internet was everything relative to what came before it. Okay. And like, if you recall back in 98, 99, 2000, and you could research this, there were a lot of doubters that said this is all BS. Right. A lot. This said this is all BS. Now, the internet took a long time to play out, but almost every single promise that it made has actually come true.

28:27And then some. And then some. Yeah, yeah. Almost every single promise, and then some, and then some, and then some. So how big then is AI and what do you predict over the next three to five years that it will do for individuals? Oh, I think it will be, I mean, I think it's like complete game changer for individuals because it's the great, it, it, it helps democratize intelligence. Right. And, and, and let's be fair. Uh, the human intelligence is not fair. We don't all have the same access. We don't all have the same ability to learn the same way. You know, my kids have tutors. Most kids don't, right?