The Psychology of Money - An Investment Manager\'s Guide to Beating the Market

(Grace) #1
Self-Diagnosis 25

is Woody Allen. In the few interviews that Allen grants, he is low-
key and pensive. He thinks for a moment before he responds,
following the introvert’s pattern of “think-do-think.”
Extraverts tend to choose careers like sales or politics; intro-
verts choose ones like research or science. About 55 percent of the
population is basically extraverted, 45 percent introverted.
Now that you have a feel for the difference, test yourself by
assigning a type to the originators of the following quotations. Are
the speakers likely to be extraverts or introverts?

“Honors and rewards fall to those who show their good quali-
ties in action.” (Aristotle)
“I never worry about action, but only about inaction.” (Win-
ston Churchill)
“The world is too much with us.” (Emily Dickinson)
“Most of the world’s troubles are caused by the inability of
men to sit quietly in a room.” (Blaise Pascal)

The first two are extraverts, right? The emphasis is on action and
the world. The second two are introverts, with the focus on soli-
tude and the inner world.
In investment terms, the extraverts like to visit with manage-
ments, go to conferences, talk on the phone, and sit in bullpens.
They are good at collecting data and gathering information. Their
weaknesses may well be concentration, depth of thought, and in-
dependent opinion. (A puppy can concentrate for about three sec-
onds, then it’s bored or distracted.)
Conversely, introverts like to study research reports, work on
their computers, and write memos. They are good at concentrating
and thinking carefully through an idea. Their weakness may be
isolation—not enough contact with the real world. They can be-
come lost in their thoughts and theories, failing to check them out
in everyday life or to put them into any kind of action. (Sometimes
they can go an entire day without noticing that a pen has leaked
in a shirt pocket... .)

04 ware 25 1/19/01, 1:02 PM

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