<p>Yesterday, I was listening to two friends debate about people like Lampert or Cohen. On guy said that these people have a natural ability for finance and investing, but the other said that that is impossible, since no one is born knowing about stocks and such. He also said that this is all learned in college and during early working years (like if you work in a hedge fund for example). Which do you think is true?</p>
<p>People actually talk about this? Damn.</p>
<p>neither .</p>
<p>Find a hobby or something. seriously</p>
<p>No need for personal attacks. I was just curious.</p>
<p>Why don’t you use your brain and think about it. People aren’t born with financial knowledge, it is all learned. </p>
<p>As Warren Buffett said ( who is more successful then both of the above combined ) you don’t need to be a genius to be a successful investor.</p>
<p>This questions seems to illustrate a larger question about the importance of experience and education vs. natural ability. There might be a few traits that would make someone more likely to be a successful investor. 1. Patience to wait out a turbulent market. 2. Ability to accept a calculated risk. 3. A good set of quantitative skills to help one analyze a companies long-term earning potential. 4. Foresight. This generally requires some decent analytical skills. Then things like experience help the investors develop more realistic analysis of the markets. Luck also plays a role as well. I would say patience and the accept (calculated) risk is one of the most important characteristics. I would agree that you need not be a genius to invest successfully. I imagine it is more a matter of having an above average intelligence at least.</p>
<p>I agree wit Milton. There are some keys word in his paragraph that strike down the entire “born with it” theory. Characteristics is one of them. You can change them over night, but if you have the correct ones for that particular market you’ll find yourself doing very well. Skills is another. You build your skills. Nobody was actually born with these skills. I don’t believe in destiny or any of that crap. I believe destiny is for people who aren’t willing to do anything on their own or to change their lives around, but that’s another story.</p>
<p>As for the intelligence part, I believe intelligence can be built. I recall befriending kids in middle school who weren’t the shabbiest characters, and seeing them years later develop into some brilliant minds. It works the other way around as well. It also continues this way because it completely your choice.</p>
<p>The way I see it, you don’t need to know a single thing about science, literature, etc. to be successful in the market. It’s all about trade and if you’ve built yourself up on it, as the names above and many others have, you’ll make it.</p>
<p>edit:</p>
<p>As for Mr Payne asking, “people talk about this?” I think it’s VERY important that people discuss this for their own sake and well-being.</p>
<p>The answer is always neither. It is never black and white. Both innate ability and that which is learned contribute.</p>
<p>Nobody’s born with it, but some are born with personality traits that make them more likely, on average, to be successful investors.</p>