' How To Win Friends And Influence People: Critical Analysis
In his book “How to Win Friends and Influence People” Dale Carnegie, the renowned 18th-century author notes that human beings are creatures of emotions rather than logic. According to Carnegie, even though we tend to assume that we are rational beings most of our decisions are influenced by our emotions. Success in most aspects of life is therefore dependent on our ability to balance the emotional and logical appeal.
A 2006 study by Accenture agrees with Carnegie by concluding that emotional intelligence (EQ) beats intelligence quotient (IQ) as a determinant of career success. The research shows that individuals who have a high interpersonal competence and are self and socially aware tend to perform better career-wise than those with high …show more content…
According to a 1970 study conducted by the Carnegie Institute of Technology, 85% percent of financial success is as a result of EQ, Body Intelligence (BQ) and Moral Intelligence (MQ). The study shows that only 15% is as a result of IQ.
A similar 2012 study by Schmidt shows that individuals with high EQ make $29,000 more annually than those with low EQ. When it comes to investing, the case is the same with investors with high EQ making more money than those with low EQ. According to Mark Starosciak, a CFP and the founder of Infinum Investment Advisors, in trading, emotions mastery is equally as important as understanding the markets.
In an interview with Fortune Magazine, Warren Buffet the legendary investor notes that while reasonable intelligence is essential in successful investing, temperament is the key. According to Buffet, greed and fear are the two emotions that drive the markets and prudent investors should know when to be greedy and when to be fearful.
Here is a chart using hypothetical emotions and a hypothetical $100,000 investment to show how uncontrolled emotions can misguide investors. Source: …show more content…
Buffet himself has managed to build a billion dollar investment not with super computers but with a strategy that leverages more on emotional intelligence.
With computer algorithms taking over the financial advisory function of investing, wealth managers need to come up with creative ways to add value to investing or else they will be phased out. Emotional Intelligence which is an important component of investing but has always been ignored is the perfect competitive advantage tool for financial advisors.
PeachCap is a financial services firm that enables registered investment advisors and wealth management firms to leverage on emotional intelligence as a tool for competitive advantage by providing them with training and the necessary client analysis tools. The firm is among the few in the industry focusing on assisting registered investment advisors and boutique wealth management firms to avail white glove financial services to the mass
A 2006 study by Accenture agrees with Carnegie by concluding that emotional intelligence (EQ) beats intelligence quotient (IQ) as a determinant of career success. The research shows that individuals who have a high interpersonal competence and are self and socially aware tend to perform better career-wise than those with high …show more content…
According to a 1970 study conducted by the Carnegie Institute of Technology, 85% percent of financial success is as a result of EQ, Body Intelligence (BQ) and Moral Intelligence (MQ). The study shows that only 15% is as a result of IQ.
A similar 2012 study by Schmidt shows that individuals with high EQ make $29,000 more annually than those with low EQ. When it comes to investing, the case is the same with investors with high EQ making more money than those with low EQ. According to Mark Starosciak, a CFP and the founder of Infinum Investment Advisors, in trading, emotions mastery is equally as important as understanding the markets.
In an interview with Fortune Magazine, Warren Buffet the legendary investor notes that while reasonable intelligence is essential in successful investing, temperament is the key. According to Buffet, greed and fear are the two emotions that drive the markets and prudent investors should know when to be greedy and when to be fearful.
Here is a chart using hypothetical emotions and a hypothetical $100,000 investment to show how uncontrolled emotions can misguide investors. Source: …show more content…
Buffet himself has managed to build a billion dollar investment not with super computers but with a strategy that leverages more on emotional intelligence.
With computer algorithms taking over the financial advisory function of investing, wealth managers need to come up with creative ways to add value to investing or else they will be phased out. Emotional Intelligence which is an important component of investing but has always been ignored is the perfect competitive advantage tool for financial advisors.
PeachCap is a financial services firm that enables registered investment advisors and wealth management firms to leverage on emotional intelligence as a tool for competitive advantage by providing them with training and the necessary client analysis tools. The firm is among the few in the industry focusing on assisting registered investment advisors and boutique wealth management firms to avail white glove financial services to the mass