Warren Buffett: Success in investing doesn't correlate with IQ
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Re: Warren Buffett: Success in investing doesn't correlate with IQ
#2[deleted]
Re: Warren Buffett: Success in investing doesn't correlate with IQ
#3Actual text: Success in investing doesn't correlate with IQ once you're above the level of 125. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.
Warren Buffett
Re: Warren Buffett: Success in investing doesn't correlate with IQ
#4Actual text: Success in investing doesn't correlate with IQ once you're above the level of 125. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing. Warren Buffett
It should be the other way around: below a certain IQ all you need is the efficient market hypothesis and you will be an adequate investor.
Re: Warren Buffett: Success in investing doesn't correlate with IQ
#5Actual text: Success in investing doesn't correlate with IQ once you're above the level of 125. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing. Warren Buffett
It should be the other way around: below a certain IQ all you need is the efficient market hypothesis and you will be an adequate investor.
Buffett's entire investment philosophy is rooted in the idea that the market is not always efficient.
Re: Warren Buffett: Success in investing doesn't correlate with IQ
#6The research conclusion is actually more general than what Buffett reports. An IQ level of about 120 is sufficient for eminence in any field, enough IQ to be a "genius" by making a path-breaking contribution to some field of creative work.
AFTER EDIT: Dean Keith Simonton's several writings on "genius" in a wide variety of domains provides the citations to other authors for that IQ figure.
Re: Warren Buffett: Success in investing doesn't correlate with IQ
#7Actual text: Success in investing doesn't correlate with IQ once you're above the level of 125. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing. Warren Buffett
It should be the other way around: below a certain IQ all you need is the efficient market hypothesis and you will be an adequate investor.
I assume you're joking, since the stock market is anything but efficient. If it were, as Buffett has noted frequently, his success would have been completely impossible. Indeed, the most money is made from the highest inefficiencies. And there's no inherent or guaranteed mechanism that drives under or over valued stocks back into any theoretical fair value line. Stocks are governed by human judgment ultimately - which typically swings emotionally to extremes - there's nothing efficient about that.
Re: Warren Buffett: Success in investing doesn't correlate with IQ
#8The research conclusion is actually more general than what Buffett reports. An IQ level of about 120 is sufficient for eminence in any field, enough IQ to be a "genius" by making a path-breaking contribution to some field of creative work. AFTER EDIT: Dean Keith Simonton's several writings on "genius" in a wide variety of domains provides the citations to other authors for that IQ figure.
Some fields have a cognitive threshold. I seriously doubt if an IQ of 120 is sufficient to become an eminent mathematician.
Re: Warren Buffett: Success in investing doesn't correlate with IQ
#9The research conclusion is actually more general than what Buffett reports. An IQ level of about 120 is sufficient for eminence in any field, enough IQ to be a "genius" by making a path-breaking contribution to some field of creative work. AFTER EDIT: Dean Keith Simonton's several writings on "genius" in a wide variety of domains provides the citations to other authors for that IQ figure.
Some fields have a cognitive threshold. I seriously doubt if an IQ of 120 is sufficient to become an eminent mathematician.
I seriously doubt if an IQ of 120 is sufficient to become an eminent mathematician.
That is an empirical question, and the historical answer is that that IQ level suffices.
Re: Warren Buffett: Success in investing doesn't correlate with IQ
#10I once talked to someone that worked for one of the brokerage houses, and they ran a report to measure the investment performance of the aggregate portfolio of people with M.D. in their title (doctors). It turns out that they were systematically terrible investors with low returns and high volatility for every period and any measure.
I think the problem physicians face is that they spend everyday all day as the smartest person in the room, and are paid to make snap decisions that are rarely scrutinized. That is a recipe for disaster when it comes to investment.