Invest Like the Best with Patrick O'Shaughnessy
00:00:00 · Patrick O'Shaughnessy
[00:00:00] S0: Ramp is the only platform built to make your finance team leaner, faster, and better, saving businesses 5% annually on average so you can stay focused on growth. Ramp just opened for business in The United Kingdom. So if you're running a business in The UK, you can now use Ramp's AI powered finance platform to manage cards, expenses, bills, approvals, and accounting all in one place. I run my business on Ramp and so should you. Learn more at ramp.com/invest. OpenAI, Cursor, Anthropic, Perplexity, and Vercel all have something in common. They all use WorkOS. And here's why. To achieve enterprise adoption at scale, you have to deliver on core capabilities like SSO, SCIM, RBAC, and audit logs. That's where WorkOS comes in. Instead of spending months building these mission critical capabilities yourself, you can just use WorkOS APIs to gain all of them on day zero. That's why so many of the top AI teams you hear about already run on WorkOS. WorkOS is the fastest way to become enterprise ready and stay focused on what matters most: your product. Visit workos.com to get started. Rogo is the AI platform purpose built for financial institutions serving tens of thousands of bankers and investors at hundreds of leading firms worldwide. Rogo's AI agents autonomously execute large chunk of your firm's workflows. They can screen deals, draft sims, run buyer outreach, and due diligence on data rooms. All with full security and compliance handled. Every action feeds Rogo intelligence, the firm's context layer, turning years of deal experience into a secure, governed institutional memory that makes each new transaction stronger than the last. To learn more, visit rogo.com/invest. There's a very interesting thing happening that relates to a piece of your work, which I haven't seen you talk about as much, and so maybe it's a fun place to begin, which is that it feels like we're now bandwidth limited on the most talented people's ability to do work. Like it used to be that the rest of the world couldn't keep up with the most talented people. And so they would get frustrated that no one was moving as fast or as efficiently as they were. There seems to be something flipping, which is actually some of these people would earn a really high return if they could generate more energy, maintain more energy, not burn out.
00:02:16 · Patrick O'Shaughnessy, Andrew Huberman
I heard this from several great entrepreneurs this summer that I think maybe Elon has just gotten into everyone's head, that the real greats are going run multiple companies. Technology unlocks so much potential for the most talented people. And so this seems like an actual bottleneck is like these people's energy. And I'd be curious in all your research and study, what you've learned about the component parts of this, generating energy, maintaining it, clean versus dirty fuel, long term performance, like all of these things are fascinating and I think actually important to the degree of progress. And so I would love you to just riff on all that for a while. [00:02:55] S1: With the caveat that Elon represents the apex of being able to do multiple, huge things simultaneously. And I don't think he has any peers in that regard. In fact, one of the best multi billionaire investors from the Bay Area who may have gone to Stanford and may have been part of the PayPal early team has asked me, how is it that Elon does this? I'm like, I can't tell you. [00:03:19] S0: Like physiologically?
00:03:20 · Andrew Huberman
[00:03:20] S1: Physiologically. I mean, there are examples throughout history of people who seem to require less sleep, they just have more energy, and most people can get their energy up. There are lot of healthy ways to do that now. And I think now we've undergone this huge shift whereby everyone understands you have to sleep eventually, and you have to know your own sleep requirements. So to dilute oneself into thinking you only need four or five hours because Elon only needs four or five hours, that's ridiculous. An honest self assessment about how much sleep one actually needs to perform well, and perhaps best, and what you can get by on, if you can't get that, that's an important thing to understand. But most people know, like for me, it's seven hours, I feel great. Eight probably puts me into the day a little bit groggy. Six, I can manage just fine. Five for one day or a sleepless night, I'm good. Two nights like that, four to zero hours of sleep, and I'm cratered. And I think most people are similar. What's really changed is that we have effective, healthy ways to build our energy up. We know to sleep, we can talk about exercise, caffeine. Some people are using nicotine. Yes, it's addictive, it raises blood pressure, but it does put people into that focused but relaxed mode. I would say if you really want the benefits of nicotine, don't use it very often. If you want the actual cognitive enhancing effects or the focus enhancing effects, then you have to not be a chronic user and then spike your system with nicotine at low amounts every once in a while. Setting Elon aside, with the understanding that he represents that extreme in terms of energy and sleep requirements being very low, I think what's really happening now is people are hopefully doing this self assessment. Like, I would hope people would have an honest conversation about themselves and say, at this point in my life, with or without kids, at this stage of my company, at this stage of my career, whatever it is, at this age, how much sleep do I need in order to feel awesome, good enough, or it's not enough? And I think most people know that. Okay, so that's step number one. The next one is something most people don't ever talk about, which is some people actually just have more energy. They can focus for long, long periods of time.
00:05:19 · Andrew Huberman
They have a ton of energy to run, they have a ton of energy to then go work, but what we never ask is, what is that person's internal state? So I know people that can do all of that, but they're kind of redlining, and they're using a lot of stimulants to do it, or they're not using stimulants to do it, but they're red lining. And then at night, they're having a hard time switching it off, and so they're not resetting their system. Some people, however, are these like wake up at 4AM, workout, handle business, deal with family, go off to work, back to business, come home, and they pivot and task switch really fast. I don't think these things are necessarily stable features throughout our entire life. Seems to be a lot of young guys come up to me, they're like, What should I do? The Oracle said it best. Know thyself. You really have to be honest with yourself about what you need in order to do something for a long period of time. Now that said, I do recall working eighty, even one hundred hour weeks in graduate school, and that served me well. I mean, it eventually led me to tenure at Stanford, etcetera. I do think that if you can pull it off, I think from zero to maybe first four years of starting a company, or if you're in medical school, the goal is don't die. Get as much done as you can, and don't impair yourself with an injury or chronic disease. We don't really define this thing optimization. And then you start to pivot into, how can I insert components of rest along the way, maybe during the day, or across the week, or the month, that really allow me to access my best levels of focus and creativity? But I'd be naive, and I'd be lying if I said somebody's starting a company in the AI realm in the Bay Area or elsewhere these days, you're gonna sit them down and you go, Listen, you really need eight hours of sleep. You gotta do your resistance training. You should do some breath work. Like, no, None of that. What they should determine is how much energy they actually have. And you've met these people, right? Occasionally, you'll run into, like, Jimmy Ivein, or some of the folks doing AI at Meta, and they just seem to have an extra gear. Some people have this extra gear. Now, there's one other component, we can deep dive into any of these, that nobody talks about.
00:07:17 · Andrew Huberman, Patrick O'Shaughnessy
And that's the ability to switch off your thoughts, your planning, and your concerns at the end of your day, and drop into sleep. [00:07:23] S0: Yeah, can we go deeper in that one? Because to be very selfish about it, if I was to self diagnose, the biggest problem I have is downshifting. Sometimes where it'll take literally four hours to go from a crazy, exciting, awesome day to literally even be able to fall asleep or just like stop the mind. If I could bestow myself with any gift, it would be what you're describing. So what is the research there of how to So do
00:07:45 · Andrew Huberman
[00:07:45] S1: in terms of sleep, there are a couple of prerequisites for sleep. There are a bunch of don'ts. So obviously you don't want to drink caffeine too late. Being under too much bright light late in the day can make it difficult, but a lot of us can't control that. Alcohol, cannabis, these things impair the quality of your sleep, but help you get to sleep. We all know that by now. But in terms of being able to turn your thoughts off, this is a very, very difficult thing for people, for good reasons. The brain wants to think, plan, remember, and organize itself around what's coming next, because such a huge aspect of brain function is prediction of what's happening next. So first requirement, turn your thoughts off. Second requirement is slow your heart rate down. Okay, so that's purely of body. And then third is you need to forget about the position of your limbs in space. So let's work through each one systematically. For the first one, turning your thoughts off is a skill. We can think, we can predict, we can remember, but we also can get into pure sensation, and that's the gateway to turning off your thoughts. And this doesn't come from Eastern tradition per se, although this has been discussed for a long time in those traditions, but there's a neuroscience correlate to all of this, of course, and we can talk about those. So how do you do that? You have to focus on pure sensation. So you start focusing on the surface of your body, if you can detect your heart rate. Some people are very good at what's called interoception, they can actually get pretty accurate measurements of their heart rate without pressing on a vein or artery, and they're just listening to their own breathing, they're listening to the sounds in the room, they're sort of bringing their conscious awareness just to the body, and it generally helps, and this relates to the second thing, to slow the heart rate down by just doing long exhales. Now this might sound very woo, but I want to be very clear, this is not meditation. Because meditation has you do something very different. Meditation has you focus all of your attention on your breathing, or all of your attention on some region behind your forehead, or your hands, or whatever.