The ultimate goal of knowing about HBD is being able to profit from it, but unfortunately I don’t have any slam dunk ideas in this area.
I’ve previously written about HBD investing, which is a subset of how to profit from HBD, but of course in order to make money from investing, you either (1) need to have money to invest; or (2) you need to be in a position to profit by investing other people’s money, which is how hedge fund managers become rich. Which is why I strongly recommend getting an MBA from Wharton, which is a ticket to getting a job in a high-paying industry like hedge funds, which is a much better route to getting rich than knowing anything about HBD.
I still adhere to my advice to invest in Australia by buying the EWA ETF.
In a recent blog post, I pointed out that companies like Microsoft and Google prospered because they hired people based on IQ (or proxies for IQ) rather than using the clueless hiring strategies which pervade the vast majority of corporate America. However, the secret of Google is out, and Microsoft is probably no longer the same company it was twenty years ago.
If it were possible to take over a company with decent potential but bad hiring policies, and institute HBD-aware hiring, I think it would be really profitable. But it’s not something you could do openly. And if you are in the position to get people to invest in your corporate takeover ideas, you are probably already rich, no doubt because you were smart enough to get an MBA from Wharton and use it to get a job in the investment banking industry.
Starting a company from scratch using HBD principles sounds good in theory, but it’s easier said than done. Knowing how to hire high-IQ employees doesn’t mean that you have customers or a product to sell to them.
* * *
Some other HBD investing advice:
Other countries you can invest in with ETFs include Japan and Singapore. They both have good high-IQ populations and are also Pacific Rim countries. The Japanese stock market has had a decade of bad performance, so right now might actually be a good time to get in.
You should avoid investing in India which is a low-IQ country that has probably already peaked. Every Indian smart enough to learn how to program in Java is already doing that. The rest of the country is poor and stupid.