Is it better to be intelligent or diligent? Put differently, should you wish that you had a higher IQ, or should you make sure you spend your time in a productive way?
I’ve spent some time thinking through this and found a simple metaphor to financial investments. IQ is your principal investment and your ability to work hard is the investment’s growth rate.
Let’s compare two simple scenarios, both done over a 20 year time horizon:
Scenario 1: Intelligent – invest $10,000 at a 5% growth rate. You’re born with a high IQ and learn at a normal pace, growing intellectually 5% each year.
Scenario 2: Diligent – invest $2,500 at a 20% growth rate. You’re born with an average IQ (1/4 of that in Scenario 1) but are focused on self-growth so you spend your spare time doing things that enhance your abilities.
At the end of 20 years in scenario 1, your investment will be worth $26,533. At the end of 20 years in scenario 2, you end up with $95,844, which is $69,311 more than the final value of scenario 1.
Obviously the two are not zero sum so it would be optimal to have high IQ and high productivity, but in absence of both I think working hard regardless of where you start is the winning strategy.

