Chamath Palihapitiya Mocks Critics After Profiting From S&P vs Mag7 Trade: 'It's Called Leverage'

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Billionaire venture capitalist Chamath Palihapitiya took to X to share his thoughts on the stock market and offer some advice to investors.

What Happened: On Sunday, Palihapitiya posted about a trade idea he had shared on the All In Podcast in January.

He had suggested going long on the S&P Index, tracked by SPDR S&P 500 (NYSE:SPY) and shorting the “Mag7,” which he referred to as the “Mean Reversion Index Trade.” This trade turned out to be a lucrative one, according to Palihapitiya.

The "Magnificent Seven" refers to a group of seven major technology giants that have had a substantial impact on both the stock market and the broader economy. This group includes Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT), Nvidia Corp. (NASDAQ:NVDA), and Tesla Inc. (NASDAQ:TSLA).

For those that watch the @theallinpod, you may remember that my most obvious trade idea heading into Jan was long the S&P Index and short the Mag7.

Aka the "Mean Reversion Index Trade"

Turned out to be free money. Very rare that the market gives you these kinds of fat pitches. pic.twitter.com/06SheKJGLk

— Chamath Palihapitiya (@chamath) July 20, 2025

See Also: Jamie Dimon Reveals A Coffee Table Chat With Jeff Bezos In 1999 That Almost Made Him ‘Never Wear A Suit Again…Live On A Houseboat’

He then followed up with another post, expressing his amusement and disappointment at the number of “unsophisticated financial ‘investors'” commenting on the thread.

He advised these individuals to use leverage, obtain an International Swaps and Derivatives Association, be banked by a prime, and put the trade on $5-10 billion a side, stating that this is how it’s done.

PS the number of unsophisticated financial "investors" commenting on this thread is both sad and funny.

It's called leverage folks!

Get an ISDA, be banked by a prime, put the trade on $5-10B a side. This is how it's done.

— Chamath Palihapitiya (@chamath) July 21, 2025

Why It Matters: According to Forbes, Palihapitiya has a net worth of 1.2 billion. He is a strong advocate of SPACs, which let private companies go public with fewer regulatory hurdles. He has sponsored and invested in several SPACs, including deals with Virgin Galactic and Clover Health.

In addition to backing various emerging trends early on, Palihapitiya was an early advocate of Bitcoin (CRYPTO: BTC). He revealed that he initially purchased $1 million worth of Bitcoin in 2012 based on a friend's recommendation and later increased his holdings as he gained a deeper understanding of the cryptocurrency.

He has also been unfazed by the recent decline of the U.S. dollar, indicating that he has a deep understanding of market trends and dynamics.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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