In his recent interview with Charlie Rose, Warren Buffett explains why you don’t need brains to be successful in the market. Here’s an excerpt from the interview:
Buffett: I’m a bright guy who’s terribly interested in what he does. So I’ve spent a lifetime doing it. I’ve surrounded myself with people that bring out the best in me and you don’t need to be a genius in what I do.
That’s the good thing about it. If I went into physics or a whole lot of other subjects I’d be an also ran. But I’m in a game that you don’t need… you probably need 120 points of IQ. Yeah, 170 doesn’t do any better than 120. May do worse, probably do worse. But you don’t really need brains.
Host: What do you need?
Buffett: You need the right orientation. You know 90% of the people… I’m pulling a figure out the air, but 90% of people that buy stocks, don’t think of them the right way.
They think about something they hope goes up next week, and they think about the market or something they hope goes up and if it’s down they feel worse. I feel better.
Host: And what do you think about?
Buffett: I think about what the company’s going to be worth in 10 or 20 years from now and I hope it goes down when I buy it because I’ll buy more.
You can watch the entire interview here:
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