Friday, March 16, 2012

High IQ Investors Outperform Other Investors

Here is some news that might make members of the Mensa Society look good. According to a recent study by Mark Grinblatt of the University of California, Los Angeles, Matti Keloharju of Aalto University in Helsinki and Juhani Linnainmaa of the University of Chicago, which was published in a recent issue of the The Journal of Finance, investors with high IQ's outperform other investors. The 'smart' investors have more diversified portfolios, they invest more of their portfolio in stocks, more stocks with high book to price ratios, and a greater percent of their stocks are smaller companies. Education and income were taken into consideration.

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