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Cliff Sosin

๐Ÿ‘ค Speaker
646 total appearances

Appearances Over Time

Podcast Appearances

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

What makes that interesting is that it turns out that the strength of these secondary reinforcers is proportionate to the power of the stimulus, as well as it's proportionate to the... inversely proportionate to the time lag between when the stimulus comes and when the pleasure sensors get stimulated.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

What makes that interesting is that it turns out that the strength of these secondary reinforcers is proportionate to the power of the stimulus, as well as it's proportionate to the... inversely proportionate to the time lag between when the stimulus comes and when the pleasure sensors get stimulated.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

So if something makes you feel good three hours after you got it, your brain kind of doesn't know where it came from. If something makes you feel good within a moment of when you got it, then your brain knows exactly. And what's interesting about that is this is called secondary reinforcers because you create these associations

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

So if something makes you feel good three hours after you got it, your brain kind of doesn't know where it came from. If something makes you feel good within a moment of when you got it, then your brain knows exactly. And what's interesting about that is this is called secondary reinforcers because you create these associations

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

between the stimulus and other things that are in the context that it was received. So you can make rats prefer cocaine that's given to them with a certain color light. They'll continue to seek out that light even when you deprive them of the cocaine. Okay, cool. That's a neat thing to know about the human brain. Where do I see that applied? Well, if I were to rank

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

between the stimulus and other things that are in the context that it was received. So you can make rats prefer cocaine that's given to them with a certain color light. They'll continue to seek out that light even when you deprive them of the cocaine. Okay, cool. That's a neat thing to know about the human brain. Where do I see that applied? Well, if I were to rank

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

by margins, the consumer packaged goods industries, I think the ranking might look something like this. You'd have the nicotine cigarettes at the top, and then you'd have like dip, and then you'd probably have Coca-Cola, and then you'd probably have coffee, and then you'd probably somewhere have like

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

by margins, the consumer packaged goods industries, I think the ranking might look something like this. You'd have the nicotine cigarettes at the top, and then you'd have like dip, and then you'd probably have Coca-Cola, and then you'd probably have coffee, and then you'd probably somewhere have like

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

candy and then you'd have like sugary sweets like um uh you know cookies and stuff like that and then you'd have like tomato sauce and bread and then you'd have i don't know water right something like that it's probably a rough like ranking well it turns out that if you go down that same list and you ask, what is stimulating people's pleasure systems?

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

candy and then you'd have like sugary sweets like um uh you know cookies and stuff like that and then you'd have like tomato sauce and bread and then you'd have i don't know water right something like that it's probably a rough like ranking well it turns out that if you go down that same list and you ask, what is stimulating people's pleasure systems?

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

Well, in the case of nicotine inhaled through a cigarette or a vaping product, nicotine is incredibly powerful. And the respiratory system is a very fast delivery mechanism. So you get this very rapid stimulation of people's pleasure sensors. And lo and behold, it creates these very strong secondary reinforcers, which make people very brand low.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

Well, in the case of nicotine inhaled through a cigarette or a vaping product, nicotine is incredibly powerful. And the respiratory system is a very fast delivery mechanism. So you get this very rapid stimulation of people's pleasure sensors. And lo and behold, it creates these very strong secondary reinforcers, which make people very brand low.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

If you ever watch smokers, they're not only smoking the same brand, they're smoking at the same time in the same place every day. It also helps that nicotine is addictive, which creates a trigger for a habit, which is a whole other brain function piece where you're kind of making and following habits.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

If you ever watch smokers, they're not only smoking the same brand, they're smoking at the same time in the same place every day. It also helps that nicotine is addictive, which creates a trigger for a habit, which is a whole other brain function piece where you're kind of making and following habits.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

You know, if you go down the list, caffeine is a good stimulator, but, you know, it's not as potent necessarily as nicotine. More importantly, you're taking it through your stomach. And by the way, dip goes through your lips. So it's pretty fast, but not as fast as cigarettes. Caffeine soda has sugar and caffeine.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

You know, if you go down the list, caffeine is a good stimulator, but, you know, it's not as potent necessarily as nicotine. More importantly, you're taking it through your stomach. And by the way, dip goes through your lips. So it's pretty fast, but not as fast as cigarettes. Caffeine soda has sugar and caffeine.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

It goes through your stomach, so it's slower, but it still creates a fair bit of, the association isn't that far apart. Then you get to things like cookies. The cookies mix with fat and stuff, so it slows it down. The sugar's mixed with fat and stuff, so it slows it down even more, but it's still pretty potent. It's obviously a sweet.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

It goes through your stomach, so it's slower, but it still creates a fair bit of, the association isn't that far apart. Then you get to things like cookies. The cookies mix with fat and stuff, so it slows it down. The sugar's mixed with fat and stuff, so it slows it down even more, but it's still pretty potent. It's obviously a sweet.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

You work your way farther down, you get to your savories or whatever. Here, yes, these are things people really like, but the sort of stimulation is much weaker. It's more time lagged. And as a consequence, people, they have a preferred tomato sauce, but in the end, it's much less brand loyalty than, say, a cigarette.

Invest Like the Best with Patrick O'Shaughnessy
Cliff Sosin - Investing in Carvana - [Invest Like the Best, EP.421]

You work your way farther down, you get to your savories or whatever. Here, yes, these are things people really like, but the sort of stimulation is much weaker. It's more time lagged. And as a consequence, people, they have a preferred tomato sauce, but in the end, it's much less brand loyalty than, say, a cigarette.