The Meb Faber Show
The Meb Faber Show

Seth Stephens-Davidowitz, Data Scientist & Author - You Do Have To Be Willing To Go Where The Data Takes You | #362

In episode 362, we welcome our guest, Seth Stephens-Davidowitz, data scientist and author of Everybody Lies: Big Data, New Data, and What the Internet Can Tell Us About Who We Really Are, which was a New York Times bestseller and an Economist Book of the Year. In today’s episode, we’re focused on wh

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Episode Summary

Executive Summary: The episode explores Seth Stephens-Davidowitz’s data-driven approach to understanding human behavior, from Google search “truth serum” insights in Everybody Lies to life-optimization findings in his new book Don’t Trust Your Gut. Key themes include appearance and perceived competence, dating mismatch between attraction and happiness, what actually drives day-to-day happiness, and surprising sales/behavioral findings from large datasets.

Main Topics: Alternative data and Google searches as truth serum (Priority: 5/5): Stephens-Davidowitz explains how anonymous search behavior reveals hidden beliefs, anxieties, and social patterns that surveys often miss, including racism, abortion, and sexual questions. Perceived competence, appearance, and first impressions (Priority: 5/5): The conversation focuses on how facial cues, glasses, beard, and other appearance changes strongly affect how competent people seem, even in politics. Dating optimization vs. relationship happiness (Priority: 5/5): He contrasts what people choose in online dating with what actually predicts long-term romantic happiness, arguing people optimize for flashy traits that do not make them happier. Happiness science and daily time use (Priority: 5/5): They discuss evidence that nature, friends, exercise, and social activity increase happiness, while work, commuting, and passive screen time often reduce it. Behavioral data in sales and persuasion (Priority: 4/5): A surprising study shows that expressive emotions like joy or surprise can hurt sales, suggesting neutral, trustworthy presentation may outperform overt enthusiasm. Sports, memory, and emotional peak experiences (Priority: 3/5): The episode closes with a personal story about a memorable Yankees playoff game, using it to illustrate how live events can become defining happiness memories.

Key Arguments: Google search data captures what people are too embarrassed or afraid to say publicly, making it a powerful source for studying taboo or hidden behaviors. People systematically misjudge what makes them happy in relationships; attractive, tall, or high-status partners do not reliably increase long-term happiness. The traits people chase in dating are often “shiny” but weak predictors of enduring relationship satisfaction. Daily life is misallocated: people spend much more time on low-happiness activities than high-happiness ones. Many activities that increase happiness are simple and accessible, but people need guardrails to overcome inertia and avoid passive habits. First impressions matter a lot, and small appearance changes can materially affect competence perceptions and political outcomes. Sales effectiveness may depend more on credibility and neutrality than on visible excitement, because overly happy sellers can seem less trustworthy.

Data Points: Search frequency: Men ask about penis size more than about lungs, liver, ears, nose, throat, and brain combined - Used to illustrate the intensity of private insecurity revealed by Google searches Reported penis-size distribution: Quasi-normal distribution centered around five inches - Stephens-Davidowitz describes self-reported penis sizes typed into Google Racist search volume: As frequent as searches for migraine, Lakers, Economist, and Daily Show; billions of times every year - Used to show scale of racially loaded search behavior in the U.S. Dating preference correlation: 17% more likely to match with someone if they share initials - Hinge-based online dating finding cited as a seemingly arbitrary preference Relationship sample size: 11,000 couples - Referenced when discussing evidence that hot partners do not make people happier Happiness time use: About 2 hours/day on high-happiness activities; almost 17 hours/day on least-happy activities; about 5 hours/day on medium activities - Based on American Time Use Survey comparison in the book Time range for time-use data: 2003 to 2019 - Used to show the trend has gotten worse over time Sales study sample size: More than 60,000 Amazon Live videos - Large-scale analysis linking seller emotion to sales outcomes Political perception research: Great accuracy in predicting election winners from perceived competence - Referenced to explain how appearance influences political success Google data scope: Search trends and Google Ads data across locations - Source material for Everybody Lies and related research

Pivotal Quotes: "It’s trivially easy to predict who you’re going to click on. It’s incredibly difficult to predict who you’re going to click with." — Seth Stephens-Davidowitz: Summarizing the gap between dating choice and relationship satisfaction "You do have to be willing to go where the data takes you." — Seth Stephens-Davidowitz: Explaining why data should override intuition in life decisions and even book-cover choices "Look at us silly people... the things that make people happy aren’t that hard to achieve." — Seth Stephens-Davidowitz: Describing how happiness science points to simple but underused activities

Implications: Listeners should treat intuition as a hypothesis, not a conclusion. The episode suggests using data to improve choices in dating, habits, and self-presentation, while recognizing that small, practical behavior changes can meaningfully improve happiness and outcomes.

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About The Meb Faber Show

Ready to grow your wealth through smarter investing decisions? With The Meb Faber Show, bestselling author, entrepreneur, and investment fund manager, Meb Faber, brings you insights on today’s markets and the art of investing. Featuring some of the top investment professionals in the world as his guests, Meb will help you interpret global equity, bond, and commodity markets just like the pros. Whether it’s smart beta, trend following, value investing, or any other timely market topic, each week you’ll hear real market wisdom from the smartest minds in investing today. Better investing starts here. For more information on Meb, please visit MebFaber.com. For more on Cambria Investment Management, visit CambriaInvestments.com.

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