Key Moments
3 killer businesses hiding in plain sight
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Key Moments
Businesses hiding in plain sight, like those in lab monkey testing or verifying soybean oil, reveal massive untapped opportunities for entrepreneurs who learn to notice and exploit market gaps.
Key Insights
The cost of a non-human primate for lab testing has surged from $2,000 to potentially $50,000 post-COVID due to supply chain disruptions, particularly China halting exports.
Charles River Labs, a major player in preclinical research, generates $4 billion in annual revenue and works with 80% of biotech companies, even acquiring a monkey breeding business for $500 million to stabilize supply.
Warren Buffett's legendary American Express trade was inspired by a soybean oil fraud scandal where fake oil was used to secure loans, demonstrating how niche verification services can become massive businesses.
Following Paul Graham's advice, entrepreneurs should pursue areas of highest excitement and venture to the frontier of an industry, where they can identify and fill overlooked gaps.
Jerry Seinfeld's joke-writing habit, producing thousands of jokes for decades, highlights the power of consistent practice in 'noticing' everyday absurdities and turning them into resonant insights.
Elon Lee, creator of Exploding Kittens, exemplifies 'shamelessness' by building a multi-million dollar business from childhood passions like games and collectibles, integrating them into his adult work.
The lucrative and ethically complex market for lab-tested monkeys
The episode delves into the surprisingly vast and expensive world of using non-human primates, specifically monkeys, for drug and vaccine testing. The cost of a single monkey has skyrocketed from around $2,000 to as much as $50,000, a dramatic increase attributed to the COVID-19 pandemic and China's decision to stop exporting these animals, which previously supplied 60% of the global market for non-human primates (NHPs). This supply shock led to a scramble for monkeys, with countries like Cambodia and Vietnam stepping in. A prominent player in this field is Charles River Labs, a publicly traded company with $4 billion in annual revenue that provides research testing services to approximately 80% of biotech companies. Their business is so critical that they acquired a monkey breeding operation for $500 million to ensure a stable supply chain. The narrative also touches upon ethical concerns, exemplified by a story where a Cambodian wildlife director was detained in the US for allegedly misrepresenting wild-caught monkeys as lab-bred ones for export, highlighting the complex and sometimes illicit undercurrents of this industry. This section reveals how essential, yet ethically charged, services can form the bedrock of enormous businesses.
The soybean oil crisis and the art of verification
A deep dive into Warren Buffett's historical investment in American Express reveals a bizarre business origin: the verification of soybean oil inventory. In the 1970s, a scam artist used massive tanks of soybean oil to secure fraudulent loans from multiple banks, with American Express acting as the verifier of the inventory. The fraud was discovered when the oil was found to be seawater, leading to a massive crisis that significantly impacted American Express. Buffett's genius lay in recognizing that despite this scandal, the public's trust in American Express for credit card services remained unshaken, allowing him to capitalize on the stock's temporary dip. This story illustrates that even seemingly obscure or mundane tasks, like verifying the existence of a commodity, can become a substantial business, especially when tied to financial guarantees and trust.
The entrepreneur's mindset: seeing gaps and opportunities
The podcast emphasizes that the world is filled with hidden businesses and opportunities that exist because entrepreneurs have identified and plugged gaps. This perspective rewires the brain to see not a fixed reality, but a landscape of potential problems to solve. Instead of focusing on areas saturated with talented individuals, like tech startups in Silicon Valley, the advice is to explore niches where competition is less fierce. This involves moving away from what 'smart people' typically know or work on, and venturing into less understood territories. The core idea is that by noticing these overlooked areas, entrepreneurs can find less crowded markets and achieve greater success. This requires a shift from viewing the world as static to seeing it as malleable and full of possibility for innovation and value creation.
Following excitement to the frontier of innovation
Drawing from Paul Graham's essay, the podcast suggests that the path to great work begins with following one's deepest excitement and interest. This isn't just about motivation; it's also a differentiator. What genuinely fascinates one person might be mundane to others, leading to a unique flavor or perspective. By pursuing this excitement to the 'frontier' of any given field—the very edge of what is known or possible—entrepreneurs are more likely to discover overlooked gaps. These gaps, often tedious or difficult to address, are the breeding ground for new ventures. The analogy of a boat following its rudder and motor to the edge of the map, only to find unexplored lands, perfectly encapsulates this strategy of deep curiosity guiding one to untapped opportunities.
The power of noticing and consistent practice
A recurring theme is the 'art of noticing'—the ability to observe the subtle details and absurdities in everyday life that others overlook. This skill is crucial for entrepreneurs and creatives alike. Comedians like Jerry Seinfeld and Eddie Murphy, and writers like Mark Manson, attribute their success to this keen observational power. Seinfeld's practice of writing jokes daily, even if most don't pan out, highlights that consistent effort in observing and articulating these nuances is key. Similarly, a story about an art thief who stole billions in art but lived modestly, driven by a personal code and a childhood fascination with treasure hunting, illustrates how a deeply ingrained passion, even if unconventional, can lead to extraordinary outcomes. This constant observation and practice, often dismissed as trivial by those focused on more conventional paths, is presented as a superpower for generating unique insights and opportunities.
Leveraging childhood passions and 'shamelessness'
The podcast advocates for reconnecting with one's childhood interests as a powerful method for discovering obsessions and potential business ventures. Many successful individuals, like Dan Brown (author of The Da Vinci Code) whose father created treasure hunts for him, or Elon Lee (creator of Exploding Kittens) who transformed his love for games and collectibles into a massive business, trace their success back to early passions. The key is not to dismiss these interests as childish or irrelevant, but to take them seriously and pursue them with 'shamelessness.' This means embracing what truly lights you up, even if it seems quirky or unconventional to others. Elon Lee's office, filled with elaborate Lego creations and a fossilized dinosaur egg, exemplifies a grown man fully integrating his childhood joys into his adult life and work, demonstrating that this 'grown-up kid' approach can lead to immense fulfillment and financial success.
Finding awe in the world and entrepreneurship
The concept of 'awe' is explored as a powerful emotion that can reduce anxiety and depression by shifting focus from oneself to the vastness of the external world. Sam Parr describes experiencing this awe in San Francisco, from grand natural vistas to the sheer audacity of certain entrepreneurial endeavors. The entrepreneurial 'awe' comes from encountering founders with 'quirky,' 'nerdy,' or 'against the grain' attributes, pursuing ideas that sound terrible but occasionally strike gold. This environment fosters a unique ecosystem where highly original, execution-dependent businesses can emerge, distinguishing it from more conventional hubs like New York. The awe experienced in San Francisco's startup scene lies in the sheer diversity and boldness of ideas, suggesting it remains a prime location for aspiring technologists seeking to dig for that rare vein of entrepreneurial gold.
Mentioned in This Episode
●Products
●Software & Apps
●Companies
●Books
●People Referenced
Monkey Costs Over Time
Data extracted from this episode
| Time Period | Average Cost Per Monkey |
|---|---|
| Pre-COVID | $2,000 |
| During COVID | $20,000 - $50,000 |
Common Questions
A significant portion of drug testing, over 20%, involves non-human primates like monkeys. Companies like Charles River Labs specialize in this, providing testing services to biotech firms and handling the import and care of these animals.
Topics
Mentioned in this video
Mentioned alongside Huberman as someone who popularized 'protocols' for self-improvement.
Mentioned in relation to his book 'Snowball' and a significant trade involving American Express during the soybean oil crisis.
Mentioned as an example of a creative person whose work emphasizes the importance of noticing.
Author of 'The Subtle Art of Not Giving a F*ck', whose book title was inspired by a band name he noticed.
Author of the essay 'How to Do Great Work', which outlines a system for entrepreneurial success based on excitement and identifying gaps.
Mentioned for his statement that his comedic talent stems from his high sensitivity to subtle details, which he uses for jokes.
Known for his daily writing habit and the book 'Is This Anything?', which compiles his jokes, highlighting the importance of noticing.
Mentioned as an author who suggests looking into one's childhood to find passions and obsessions.
Author of 'The Da Vinci Code', whose childhood experience with treasure maps sparked his passion for treasure hunt stories.
Mentioned as the sponsor that compiled a database of business ideas discussed on the podcast, available for free download.
Discussed in the context of a historical soybean oil fraud where the company was the guarantor and had to pay a massive fine.
A business focused on managing dental back-office operations, including insurance claims and billing, for dentists using AI.
A retail store mentioned for its board and card game aisle, where Elon Lee's games are sold.
A popular board game created by Elon Lee, which became the foundation for a successful business in the gaming industry.
The company that hired Elon Lee to design a competitor to the PlayStation, leading to the first prototype Xbox.
Warren Buffett's biography, from which the speaker learned about the soybean oil shortage and its impact on American Express.
A bestselling non-fiction book by Mark Manson, whose title was inspired by a song the author noticed.
Jerry Seinfeld's book compiling decades of his jokes, showcasing his writing habit and the process of finding comedic material through observation.
A bestselling mystery thriller by Dan Brown, exemplifying his childhood passion for treasure hunts.
A true story about an art thief who stole $3 billion worth of art without selling any of it, driven by a personal code and passion.
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