Experience vs. Expertise in Investing — Why Your Process Matters More Than Your IQ
00:00:00.000 | You said that experience is not the same as expertise in investing.
00:00:04.320 | What did you mean by that?
00:00:05.440 | Just because you've been in this game for a long time
00:00:07.280 | doesn't necessarily mean that you're an expert on something.
00:00:09.200 | Yes, experience helps because you can,
00:00:11.520 | if you're investing and you live through a lot of these different market cycles,
00:00:14.320 | you kind of pick up on some things.
00:00:15.520 | But I know plenty of investors who have been at this game for decades
00:00:18.480 | who still make the same mistakes
00:00:19.760 | or they change their investing strategy all the time.
00:00:22.400 | It's really more about having a process that you'll stick to.
00:00:24.800 | That matters more than how many years you've been doing this.
00:00:28.240 | Investing is not a game where the guy with 160 IQ beats the guy with 130 IQ.
00:00:32.320 | He's like, "You can have the leftover."
00:00:34.640 | So it's more about the temperament and the ability to control your emotions
00:00:38.400 | and that emotional intelligence.
00:00:39.600 | People want to have certainty in their life
00:00:42.240 | because the future is always uncertain,
00:00:44.640 | especially when it comes to investing in the markets and the economy.
00:00:47.760 | No one really knows what's going to happen.
00:00:49.840 | I always really was attracted to the people that would say occasionally,
00:00:53.520 | "I don't know," or "I was wrong, and here's how we're going to fix it."