Warren Buffett is considered one of the most successful investors of all time. As the CEO of Berkshire Hathaway, he has built an enormous fortune estimated at over $100 billion. But how did he get there? Many point to Buffett’s high IQ as a key factor behind his investing prowess.
Warren Buffett’s background
Warren Buffett was born in 1930 in Omaha, Nebraska. From a young age, he displayed an interest in stocks and investing. He purchased his first stock at age 11 and filed his first tax return at age 13, claiming deductions for his bike and watch as business expenses.
As a teenager, Buffett delivered newspapers and worked at his grandfather’s grocery store. He enrolled at the Wharton School of Business at the University of Pennsylvania in 1947 before transferring to the University of Nebraska. While in college, he continued to make small investments.
After graduating in 1950, Buffett attended Columbia Business School. He learned the principles of value investing from Benjamin Graham, author of The Intelligent Investor. This investment strategy of finding high-quality undervalued stocks would become a cornerstone of Buffett’s approach.
Assessing Warren Buffett’s IQ
Warren Buffett has never publicly revealed his IQ score. However, there are estimates of what it could be based on certain clues:
- He was a straight-A student in high school and college, suggesting a high level of intelligence.
- He was admitted to the Wharton School of Business, which is highly selective.
- He understands complex business and financial topics quickly and thoroughly.
- He is skilled at mental math, able to calculate large numbers in his head.
- His long-term memory and recall abilities are strong.
Based on his academic performance and financial success, some psychologists estimate Buffett may have an IQ between 160 and 170. An IQ in this range would be considered highly gifted and in the top 0.1% of the population.
IQ tests taken
While his exact IQ score is unknown, Buffett is known to have taken at least one test:
- At age 15, he took an intelligence test at his high school. He scored an impressive 253 out of 300.
This early test suggests he already had an exceptionally high IQ in his teens. However, without knowing the type of test and the population norms, it’s impossible to accurately convert this into a modern IQ score.
IQ compared to investors
| Investor | Estimated IQ |
|---|---|
| Warren Buffett | 160-170 |
| John Maynard Keynes | 155-160 |
| Benjamin Graham | 145-150 |
Compared to other famous investors, estimates place Warren Buffett at the very top in terms of IQ. For example, Benjamin Graham, Buffett’s mentor and author of The Intelligent Investor, had an estimated IQ between 145 and 150. Economist John Maynard Keynes, known for pioneering macroeconomic theory, had an estimated IQ between 155 and 160.
High IQ as an investing edge
Warren Buffett’s high estimated IQ likely gives him significant advantages in investing:
- Quick processing speed – With an estimated IQ around 160, Buffett is able to absorb and analyze financial information rapidly. This allows him to make decisions faster than the average investor.
- Expert pattern recognition – Buffett can quickly identify patterns, trends, and anomalies in the market that typical investors miss. This allows him to spot opportunities.
- Strong memory – Buffett can recall decades of financial data, enabling him to reference past experiences when making current decisions.
- Advanced risk analysis – His IQ enables complex calculations of risk scenarios and probabilities for investments.
In essence, Buffett’s intellectual abilities allow him to act quickly on a massive database of knowledge accumulated over decades. This gives him an edge over even highly skilled investors.
Non-IQ factors
While having a high IQ has helped Warren Buffett, it’s likely not the only factor behind his success. Other key abilities and personality traits:
- Obsession with business and investing from a young age.
- Willingness to put in long hours researching companies.
- Patience to hold stocks for the long-term.
- Ability to tune out market noise and stick to a strategy.
- Skilled interpersonal abilities to negotiate deals.
Furthermore, Buffett had the good fortune to study under Benjamin Graham at the beginning of his career. He also had mentors like lawyer Charlie Munger who helped guide him.
While his intellectual abilities were necessary for success, they likely would not have been sufficient without these other skills, experiences, and personalities.
Conclusion
Warren Buffett’s exactly IQ score remains unknown. However, based on his academic and professional achievements, experts estimate it could be between 160 and 170. This places him in the 99.9th percentile of intelligence.
Having an exceptionally high IQ gives Buffett advantages in processing information and recognizing patterns. However, his success is also driven by a tireless work ethic, long-term outlook, and learning from mentors like Benjamin Graham.
In the end, while Buffett’s IQ has been an asset, it’s his passion for investing and willingness to keep learning over decades that made him a billionaire and one of the greatest investors in history.