FYI: Are smarter people better investors? Most of the traditional answers I have read on this suggest “No” or “not necessarily.” For example, my colleague Ben Carlson wrote about how some of the smartest people in society (i.e. doctors, lawyers, engineers, etc.) also happen to make some of the worst investors due to their overconfidence. Many of these highly educated individuals believe that their superiority in one field transfers over to investing. Warren Buffett implicitly agreed with this when he stated:
You don’t need a lot of brains in this business. I’ve always said if you got an IQ of 160, give away 30 points to somebody else, because you don’t need it in investments.
Regards,
Ted
https://ofdollarsanddata.com/are-smarter-people-better-investors/
