10/02/2025
There is evidence that high IQ and education are not enough to make someone an intelligent investor. Sir Isaac Newton, for instance, owned shares in the South Sea Company in 1720.
He sold his shares, making a £7,000 profit, after sensing the market was overheating. However, he later reinvested at a higher price and lost £20,000. Newton's mistake was letting the crowd's enthusiasm cloud his judgement. An intelligent investor must be patient, disciplined, and willing to learn, with the ability to manage emotions and think critically. This type of intelligence is more about character than intellect.
Newton's story shows that even the most intelligent people can fail at investing if they lack emotional discipline. If you've struggled with investing, it's likely due to a lack of emotional control, not stupidity.