Thursday, October 6, 2011

Older is better in the investment biz

I've mentioned the three Freds, all interesting fellows with different slants on life and perspectives they aren't reluctant to share.

One of the Freds (a retired investment manager) sent me an article entitled Why geezers give the best investment advice. If you have an investment advisor or listen to pundits recommending the next hot stock, you might find this news you can use.

Researchers have discovered that you ought be looking for a guru in the 43 to 63 age range.

Apparently this is the age when "fluid intelligence" and "crystallized intelligence" converge.

Fluid intelligence, which peaks around the age of 20, has to do with analyzing, processing and retaining new information. I can confirm that this definitely declines later in life, particularly the retaining part.

Crystallized intelligence, a fancy term for experience and knowledge, increases with age.

The curves cross around the age of 53 so those folks are at the top of their game. They have been through a few bear markets, and that's invaluable experience you don't get from textbooks.

So, to stay out of the red, look for a bit of grey.

No comments:

Post a Comment