Social Arbitrage And The Investing Peloton

Good Friday afternoon.

Before I get started, here is a latest video from team Grass Clippings (Social Leverage Fund 4) as they bulldoze and rebuild the 9th hole at the new golf course in Tempe, AZ:

Onward…

About the only thing I can get better at in my later years is investing (Ellen would say my gas level is Tour De France next level shape). The good news (about investing, not my gas) is I love doing it, have more time to do it, have a great network to do it, have incredible tools at my disposal and my own capital (actually this applies to ‘gas’ as well).

Take a look at this Warren Buffett wealth chart (based on his diet he is no farting slouch himself):

The power of compounding and good decisions really start piling up in your late 50’s.

As I have been writing here the past year, I plan to mostly index in public markets using ETF’s to focus on time in, not timing the markets, but I want to capitalize on the changes in market signal using what my friend Chris Camillio calls Social Arbitrage. Way back in 2006 when I started Wallstrip, I knew that YouTube would change the world of investing - that was even before Twitter and Stocktwits and Now TikTok - added insane fuel to this explosion of alpha potential (I will write further about this strategy and Camillo’s as well next week). Here is a piece I wrote back in 2014 as the ‘social data boom’ accelerated.

Even though I am no longer a time billionaire, I plan to be more patient waiting on fat pitches that get served up in the public markets two or three times a year and want to spend the next 20 years leaning in much harder on the ones we identify. Warren Buffett says it best…

Investing better over the next 20 years is my ‘Tour De France’ and I have a great peloton to work with.

Have a great Friday eve.