tag:blogger.com,1999:blog-26277603.post5218401717484469810..comments2009-11-24T00:17:33.717-05:00Dual Income No Kidshttp://www.blogger.com/profile/04648586816512955888dinksfinanceblog@yahoo.comBlogger5125tag:blogger.com,1999:blog-26277603.post-80393016865223443302009-11-23T19:43:07.119-05:002009-11-23T19:43:07.119-05:00I tend to agree with Financial Samurai and Dangerman, being smart really does help increase wealth in investments. But that doesn&#39;t invalidate this study.<br /><br />People who are smart and benefit from that trait just aren&#39;t a big enough sample of the investing population when you take into account the vast amount of people investing through their workplace, retirement, or even stock tips.<br /><br />So if you look at that population as a whole, I&#39;m not surprised at the conclusion that intelligence plays no statistically significant factor in success in investing.Edwinhttp://www.blogger.com/profile/04504708255945548218noreply@blogger.comtag:blogger.com,1999:blog-26277603.post-90356400617049628542009-11-20T14:05:42.907-05:002009-11-20T14:05:42.907-05:00Dangerman - No misinterpretation at all. Smart people ARE much better at investing than dumb people.<br /><br />Believe it or not, there are actually professional money managers who beat the market and get paid a lot to invest.<br /><br />Ever heard of Warren Buffet or Peter Lynch?Financial Samuraihttp://www.financialsamurai.comnoreply@blogger.comtag:blogger.com,1999:blog-26277603.post-38598672932216212252009-11-19T21:55:20.109-05:002009-11-19T21:55:20.109-05:00Hey Dangerman, <br /><br />yeah, I did kinda play hard and fast with the title a little bit. I think the problem is that there is a lot of good data on stocks, but less on other kinds of investments, so a lot of the research literature is biased toward equity. <br /><br />-JamesDual Income No Kidshttp://www.blogger.com/profile/04648586816512955888noreply@blogger.comtag:blogger.com,1999:blog-26277603.post-41295149824111893832009-11-19T21:43:46.993-05:002009-11-19T21:43:46.993-05:00Wow, you completely misinterpreted this. <br /><br />This study says that smart people are no better AT INVESTING than dumb people, in accordance with the efficient markets hypothesis. Not that smart people aren&#39;t RICHER OVERALL than dumb people.<br /><br />This study only looked at &quot;wealth accumulation _by capital investment_&quot; not wealth accumulation in general.Dangermannoreply@blogger.comtag:blogger.com,1999:blog-26277603.post-86846776442677946552009-11-19T21:41:04.242-05:002009-11-19T21:41:04.242-05:00Wait, did I just read &quot;rich people are rich because of dumb luck, not because of investing smarts.&quot;<br /><br />I&#39;ll have to object profusely! It takes discipline, hard work, and GUTS to invest properly. Poor people, or people who are not rich attribute rich folk&#39;s wealth to luck, and their lack of fortune to bad luck.<br /><br />What a pity.Financial Samuraihttp://www.financialsamurai.comnoreply@blogger.com