Share
This study analyzes whether high IQ investors exhibit superior investment performance. It combines equity return, trade, and limit order book data with two decades of scores from an intelligence test administered to nearly every Finnish male of draft age. Controlling for wealth, trading frequency, age, and determinants of the cross-section of stock returns on each day, we find that high IQ investors exhibit superior stock-picking skills, particularly for purchases, which earn up to 11% more per year than the purchases of below average IQ investors. High IQ investors also obtain superior trade execution for both purchases and sales.
Join over 320,000 readers. Get a free weekly update via email here.
Related posts:
New Neuroscience Reveals 4 Rituals That Will Make You Happy
New Harvard Research Reveals A Fun Way To Be More Successful
How To Get People To Like You: 7 Ways From An FBI Behavior Expert