Hi Guys,
Currently, I'm reading a book by Daniel Goleman titled "Emotional Intelligence". Several references on that subject list Goleman as a leading practioneer in that evolving field. Emotional Intelligence (EI) is separate and distinct from an IQ score although folks who do well in IQ testing often do well in EI testing. High IQ measures how well folks absorb book learning while EI purportedly measures how well folks interpret and skillfully apply that learning. I recognize that my definitions are over simplifications for the purpose of being brief.
Some studies show that high IQs do not translate into superior market returns. The correlation is positive but very weak. Here is one Link that discusses some characteristics of this developing science as related to investing:
http://money.usnews.com/investing/articles/2016-12-13/for-investors-emotional-intelligence-is-as-important-as-iqAs I mentioned, earlier studies suggest that a strong IQ rating does not have a strong correlation with investment success. Something more is needed. Perhaps what's needed is a strong EI score. Remember, IQ and EI are not necessarily tightly correlated.
Goleman and others have suggested that EI testing is in a primitive stage and needs more work to be a reliable indicator of real EI. I don't challenge their assessment. But perhaps as a rough insight to your EI level you might be motivated to take a quick 10 question test that will immediately return an EI score for your effort. Here is a Link to one such test site:
https://www.arealme.com/eq/en/I always find these tests difficult. I hope you took the test and did well. If not it might be a prudent policy to discuss your investment decisions wiih a relative or a trusted friend or an advisor. Wait a minute! We're sort of doing that now by investing in mutual fund products and by discussing these matters on MFO.
EDIT: Sorry guys, I Linked to a quiz on Facebook that is no longer available. Thanks Crash for informing me of the situation.
EDIT 2: Here is a link to another 10 question quiz that seems similar to my initial reference:
http://www.proprofs.com/quiz-school/story.php?title=emotional-intelligence-questionnaire_1I hope this works for you.
Best Regards
Comments
I went to a private Catholic High School with stringent testing entrance requirements. We had 360 students in our class which was divided into 10 classrooms from the smartest to the not so smart. Those that were the most successful financially in their careers seemed to not come from the top class, but the classes a rung or two or three below. Maybe they worked harder than the high IQers, but something was in play there. One in particular was a well known personality on NPR. The top class as you would suspect had many that went into academia (college professors) the medical field (doctors and researchers) and engineering where a high IQ is almost a requirement. But unfortunately more so than the lower tier classes some of the brightest in the top class got involved in drugs and never could get their lives together - most of them are now 6 feet under including my best friend who graduated from Yale.
Of course, success in life should never be measured by money and how much we accumulate. We all have stories of rich friends who live miserable lives.
https://www.poemhunter.com/poem/richard-cory
Successful investors think they have high IQs. That's it. Anything extrapolation from *this* fact can statistically prove the premise.
End of editorial.
c'est tout
Catch
Sorry to learn that you will be boycotting my posts because of my opening salutation. I've used it forever, my wife of 56 years has used it forever when communicating with her female friends, and I have used it in over 300 posts that I have made on MFO.
That particular of my writing style would be difficult to abandon, and I do not plan to do so. My hundreds of posts have been read tens of thousands of times, presumably many of these readings by women, without a negative comment whatsoever before your singular objection. You are definitely not just an outlier on this matter, but a far outlier.
If a few women objected, I would gladly change. If Professor Snowball objected, I would happily change. None of this happened. Therefore, I choose not to modify my submittal format.
And it's merely an introductory format. It doesn't impact the substance of my postings, the subject matter presented, or my interpretation of that subject matter. I submit that these are the significant factors that should determine if my postings are worth your important time and investing interests.
My salutation is irrelevant in that context. I chose "Hi Guys" because I felt it was sexually neutral and because it has been generally (not universally) considered neutral for years in my work and private experiences. I have worked for female bosses and have hired female employees. Guys was a common and convenient greeting term. People, Guys and Gals, Men and Women, etc., all seemed awkward. It was and remains my greeting choice.
I fully respect women. Not only do they make the world a better place, they make better investors. I have said that many times in previous posts. Here is yet another reference that makes the same point statistically:
https://www.smu.edu.sg/perspectives/2017/02/27/sorry-guys-women-make-better-investors-men
I hope you reconsider your decision to avoid my submittals. I welcomed your comments in the past and would appreciate and consider them in any future exchanges. I hope this is not c'est tout!
Best Wishes, especially if this is our final exchange.
Regards,
Ted
And I must say I do not like the use of "guys" when addressing women. It's the geezer in me, I'll admit it. But I won't boycott those who choose to use the term. I may be a geezer, but I am a flexible one.
https://www.nytimes.com/2016/03/27/your-money/why-we-think-were-better-investors-than-we-are.html
Many thanks for the link to this excellent Gary Belsky piece. He is great at summary articles that contain as much useful information as many books do.
Best Wishes