This article from Motley Fool is a classic. I like to read it over and over again.
Best quote: "Although humility is a trait I much admire, I don't think I quite got my full share." --Charlie Munger
Regarding IQ Scores
The discussion on 130 vs 160 is interesting. I'm no genius =) , but according to my math, a score of 124.7 is in the top 5% (see below). Apparently, the first rule of investing is to pick your parents wisely. Should the 97% of people who score below 130 index or find someone with an IQ score above 130 to manage their money? Then again, maybe Buffett just pulled the numbers out of the air for the sake of demonstration and Tilson is taking it too far. My personal view -- IQ tests measure how well someone can take IQ tests. I also believe that there are other forms of intelligence that are not measured. Naturally, those beliefs are wholly dependent on my score. =)
My conclusion is that adopting a smart strategy and sticking to it is more important than being ultra-smart.
P = 0.05
z = 1.645
z = (x - μ) / σ
1.645 = (x - 100) / 15
24.675 = x - 100
x = 124.675
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1 comment:
Ah, this sounded so wise until I noticed that it was written at 4:00 AM. Why weren't you asleep instead of engaging in such deep thinking -- or maybe you were asleep?
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