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Why Intelligence Alone Doesn’t Make Winners

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Many have already become very wealthy with stocks and ETFs. Not just bad guys like Warren Buffett, but possibly his neighbor who has been secretly buying stocks for many years.

But before buying shares comes uncertainty. Viewed objectively, one has probably never been the high-flying intellectual. And if he wants to get rich in stocks and ETFs, he must have a certain level of intelligence.

As is often the case, reality is completely different from theory. Because I’ve seen a lot of very smart people get desperate in the stock market. My experience says: intelligence hardly plays a role. Instead, another skill that rarely gets the attention it deserves.

Numbers, numbers, numbers!

Smart investors are instantly recognizable. They are the ones always keeping an eye on all the numbers and just throwing out technical terms.

One would like to be as talented as the number jugglers. After all, the stock market is always about numbers.

Courses, sales, earnings. It’s all math at its core. And only those who show some intelligence in this field can become infinitely rich with stocks and ETFs.

In theory, stocks make you rich very quickly and easily.

Investors who rely primarily on their intelligence can always look to the future with optimism. Because discounting profits has always accurately determined the fair value of the stock.

Some bargains can be picked up with the magical power of intelligence. Now you can kick back and get rich with stocks and ETFs.

But whoops! Suddenly, the market turned all forecasts upside down. Intelligence is working at full speed. Where could be the error?

You can’t win anything in the stock market with intelligence alone.

Suddenly, panic seeps into the brain cells. Red alert! The world formula obviously has a loophole.

Buy and sell. Buy again, sell again. Until the market does what the numbers predict.

Informed stock market experts know that you can never get rich in stocks and ETFs this way. After all, what good is all that intelligence if you don’t have your emotions under control.

Those who cultivate this ability can become very wealthy with stocks and ETFs.

An excess of intelligence is always useful. Those who can absorb and process a lot of information also have a huge advantage in the stock market.

But if you want to get rich in stocks and ETFs, you’re going to have to spend a lot of time on personal taming.

It is what Buddhist monks like to call the inner monkey. A primal instinct that is constantly greedy or fearful and, especially today, does not always bring beneficial results.

Strange but true: in my experience, there is more to be gained from meditating on the stock market than from any textbook.

The article Rich with Stocks & ETFs: Why Intelligence Doesn’t Make Winners first appeared in The Motley Fool Germany.

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Motley Fool Germany 2022

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