What I Learned About Investing from Darwin

by Pulak Prasad

Let’s move on to plants. Most of us have had coffee, tea, and chocolate (derived from cacao). The Brazilians among us will be familiar with the drink Guaraná Antarctica, made from the guaraná plant in the Amazon rainforest. All four plants produce the same chemical desired by humans: a purine alkaloid called 1,3,7-trimethylpurine-2,6-dione—in short, caffeine.9 These four plants may seem to be closely related, but they aren’t. The common ancestor of tea and coffee dates back a hundred million years. Cacao is more closely related to maple and eucalyptus trees than to tea and coffee. Bizarrely, the ancestor of coffee gave rise to potatoes and tomatoes but not tea! Plants have many defense mechanisms against predators, and it appears that some have converged toward the same solution: producing caffeine. Many plants rely on birds to pollinate their flowers. So if a plant depends on hummingbirds for pollination, what should it do? Develop red flowers because red is attractive to hummingbirds. Consequently, eighteen types of plants that hummingbirds pollinate have evolved bright red flowers.