Do Successful Investors Have High IQs?
Bangalore: You don’t have to be genius to earn a good investment. Having a high I.Q. score can help? You often think that external factors like market research, profitable investment options, financial planning and investment advisory firm with help you pick a good investment and earn higher returns from investment. But the truth behind successful investment lies much deep inside your brain.
Robert Shiller, Professor of Economics at Yale University has written a coloum in new York times based on the academic paper from economists Mark Grinblatt (UCLA), Matti Keloharju (Aalto University), and Juhani T. Linnainmaa (University of Chicago) on the subject of IQ and investing. Shiller found journal of economist researchers embarks on ‘People with higher IQs follow better rules for investing’.
Even after taking into account factors like income and education, the author concluded that people with relatively high I.Q.’s typically diversify their investment portfolios more than those with lower scores and also invest more heavily in the stock market.
The result was people with high I.Q.’s build portfolios with better risk-return profiles than their lower-scoring peers.
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