Warren Buffett: Temperament

“Phil Carret used to talk about having a ‘money mind,’ and I would call it a ‘business mind.’ And there are people…with identical IQs that are better adapted for one than the other. And the temperament is all important. I mean, if you can’t control yourself, no matter what the intellect you bring to the process…you’re going to have disasters. And Charlie and I have seen one after another. It’s not a business that requires extraordinary intellect. It does require extraordinary discipline. That shouldn’t be so difficult. But as I look around the world sometimes, apparently it is quite difficult. I mean, the whole world went a little mad a few years back in terms of investments. And you say to yourself, ‘How could that happen? Don’t they learn anything from the earlier ones?’ But what we learn from history is that people don’t learn from history. And you certainly see that in financial markets all the time.”

—Warren Buffett.