How to embrace “psychological magic” to be more creative

This week in The Long Game, I had the pleasure of speaking with Rory Sutherland, Vice Chairman of Ogilvy, author of Alchemy, and one of the most original minds in business and psychology. Rory has a knack for flipping conventional wisdom on its head, and in our conversation, he takes aim at our culture’s obsession with efficiency. His argument? True breakthroughs often come not from optimization but from slowing down and embracing what he calls “psychological magic” — solutions that defy logic yet resonate deeply with human behavior.

Our conversation explored Rory’s delightfully contrarian ideas — challenging us to question the obvious — and embrace the unexpected. From his skepticism of big data to finding value in inefficiencies, Rory has a knack for making the complex feel obvious and the absurd seem essential. And, as expected, he couldn’t resist using one of his favorite metaphors: “explore bees” and “exploit bees.” Even in the tiniest corners of nature, Rory finds lessons on innovation and survival.

Key quote: “There are ‘explore bees’ and ‘exploit bees,’ and the ratio between them varies. But here’s the key: you need a certain percentage of bees focused on exploring. These bees serve a dual purpose. Without them, you can’t get lucky. You can only become marginally better at what you’re already doing, but you’ll never discover a new source of pollen or nectar. In other words, you miss out on positive, serendipitous opportunities.”

The “fitness alpha” that improves your life — and portfolio

As the new year kicks off, the connection between personal health and professional performance feels more relevant than ever. In this conversation between Barry Ritholtz and Philip Pearlman, I came across an intriguing idea: “fitness alpha.”

Pearlman, founder of The Pearl Institute, argues that better health — whether through quality sleep, smarter nutrition, regular exercise, or simply staying calm under stress — isn’t just about feeling better. It’s about thinking sharper and performing better, especially in high-pressure fields like investing, where traditional edges are disappearing fast.

Key quote: “Where do you get the alpha from? Do you get it from information, do you get it from having a certain model? There are different sources — and there’s one source that is just a very simple source of alpha that nobody is talking about: Nobody has ever talked about it. And it’s the outperformance we derive from our health. The healthier we get, the better we perform across multiple areas of function.”

A few more links I enjoyed:

John Rotonti’s Search for Quality and Value – via Investing Unscripted

Key quote: “‍In this episode, Jason and Jeff welcome return guest John Rotonti. John discusses his new job with Islamorada Investment Management, shares insights on his value investing approach, and how he’s forming his new fund focused on industrials, infrastructure, and housing. Stick around to hear John’s reckless predictions for 2025.”

The disruption of labor by humanoid robots – via Tony Seba / RethinkX

Key quote: “Over the next 15-20 years, humanoid robots will disrupt human labor throughout hundreds of industries across every major sector of the global economy. The disruption of labor will be among the most profound transformations in human history, and therefore simultaneously represents one of the greatest opportunities and greatest challenges our civilization has ever faced.”

The Black Swans are Overhead – via Tom Morgan

Key quote: “One theory for why aliens might be showing up now is that they’re trying to prevent us from speed-running extinction using our own technology. With nuclear brinksmanship, ever-accelerating progress around artificial intelligence and now quantum computing, that possibility would certainly pass the vibe check. But it also illustrates a much more interesting point: that technology is at best a facilitator and at worst a dangerous distraction from what should be the main event: the evolution of our collective consciousness.”

From the archives:

The Common Denominator of Success – via Albert E.N. Gray (1940)

Key quote: “But this common denominator of success is so big, so powerful, and so vitally important to your future and mine that I’m not going to make a speech about it. I’m just going to ‘lay it on the line’ in words of one syllable, so simple that everyone can understand them. The common denominator of success — the secret of success of every man who has ever been successful — lies in the fact that he formed the habit of doing things that failures don’t like to do. It’s just as true as it sounds and it’s just as simple as it seems. You can hold it up to the light, you can put it to the acid test, and you can kick it around until it’s worn out, but when you are all through with it, it will still be the common denominator of success, whether you like it or not.”