Warren Buffett is one of the most well known and respected investors in the world, with a skill set that is matched by no other. What makes the Oracle of Omaha so smart? Well, it has been said that he reads up to %80 of his day and he has done so since being a very young boy. With all of that knowledge, one might think that Warren Buffett has an insanely high IQ right? Nothing could be further from the truth, and Warren Buffett recently took to an interview to dispel the rumors that you need a high IQ to make it in the stock market.
In fact, it is the total opposite as Warren points out. The stock market is less based off of intuition and gut feelings, and the right ratio is essential to making a decent living off of the market. Warren Buffett said that the average stock investor needs about a 130 IQ to really make it in the stock market. Of course, there are some exceptions to this, but in Warren Buffett’s mind, this is the IQ that you need to succeed. The stock market is based a lot of feelings and emotion, especially fear. Which is why the market reacts to the daily news and tends to be manipulated.
Warren Buffett is a master at taking the fear and turning it into a profit and has said that he made $5 Billion during the 2008 economic downturn. This just goes to show that you need to have a solid foundation and intuition more then anything if you want to make an impact on the market. Warren Buffett knows how to pick stocks, and if you can harness the same positive energy and common sense as Warren Buffett you will do better then alright in the stock market.