Think you have what it takes to turn $20,000 into $2 million in a few years? Chris Camillo did, and he spoke to Bloomberg TV today and revealed his big secret. Camillo told Bloomberg that he only makes one or two big trades per year, but those few trades are where he gets his big payoffs.
“It’s about learning how to retrain your mind to identify game changing things in real life,” Camillo said.
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And it’s those game changing things that can have an effect on public companies in a big way. Camillo said he made most of his money between 2007 and 2010, which was one of the worst economic periods the U.S. has seen in decades. According to Camillo, there’s never a bad time to make a great investment.
“When you see something in your life that Wall Street hasn’t picked up on, that’s when you have an opportunity to make an information arbitrage investment,” Camillo said. “When they start talking about it, that’s when you exit the investment.”
He told Bloomberg TV that he trained himself to see how common, everyday things could correlate to investments. He emphasized that it’s not our own personal thoughts on various subjects, but the things that a lot of people are adapting to.
Camillo shared a story about a coworker who read “The Hunger Games” and told him if someone made a movie about it, it would be bigger than “Harry Potter.” After a bit of research, he learned just how popular the book was and that Lions Gate Entertainment Corp. (NYSE:LGF) was in the process of turning it into a film. At that time, the company had never had a blockbuster before, but Camillo invested in it even though he had never read the book. He said within the next six months, the company’s stock had doubled.
Camillo said his secret to sizing his trades is simple. He puts between 20 and 40 percent of his portfolio into one of his major trades, which is easy to do since he makes very few big trades every year. He said he often sees triple digit returns on his investment.
At this point Camillo said he’s not working on any major trades at the moment, but he thinks one of the biggest things to hit the investment world right now is crowd-fund investing.
“Because of the jobs act, the crowd-funding exemption, every single American will have the opportunity in 2013 to invest in startups the same way VCs and angels do today,” Camillo said. “Even if it’s a small amount of money.
He also said that this gives everyone an opportunity to leverage their local information, like companies their social networking connections are starting, etc.