• Home
  • About Us
    • Who we are?
    • Why choose us?
    • What have we achived?
    • What our students says?
  • Programmes
    • CMA Programmes
      • About ICMA
      • Graduate Conversion Program
      • CMA Workshop – Accountancy Qualification
      • CMA Workshop – CGBA
    • Chartered Institute of Securities & Investments
      • About CISI
      • International Introduction to Investment
      • Risk in Financial Services
      • Wealth & Investment Management
      • Global Financial Compliance
    • Corporate Finance Institute
      • About CFI
      • Financial Modeling & Valuation Analyst
      • Certified Credit & Banking Analyst (CCBA)
      • Capital Markets & Securities Analyst (CMSA)
      • International Introduction to Securities & Investment
    • Institute of Internal Auditors (IIA)
      • About IIA
      • Certified internal auditor (CIA)
  • Training
    • Quantum Leap Training
      • Leasing Qualification
      • Corporate Training
      • Employee/Personal Training
  • Resources
    • The Climate Reality Project
    • Blog Feed – Academy of Finance
    • Webinars – Academy of Finance
    • Inductions – Academy of Finance
    • Video Classroom
    • General Videos & Announcements
    • CMA on Target Article
  • Contact
    • Student Portal
Academy of FinanceAcademy of Finance
  • Home
  • About Us
    • Who we are?
    • Why choose us?
    • What have we achived?
    • What our students says?
  • Programmes
    • CMA Programmes
      • About ICMA
      • Graduate Conversion Program
      • CMA Workshop – Accountancy Qualification
      • CMA Workshop – CGBA
    • Chartered Institute of Securities & Investments
      • About CISI
      • International Introduction to Investment
      • Risk in Financial Services
      • Wealth & Investment Management
      • Global Financial Compliance
    • Corporate Finance Institute
      • About CFI
      • Financial Modeling & Valuation Analyst
      • Certified Credit & Banking Analyst (CCBA)
      • Capital Markets & Securities Analyst (CMSA)
      • International Introduction to Securities & Investment
    • Institute of Internal Auditors (IIA)
      • About IIA
      • Certified internal auditor (CIA)
  • Training
    • Quantum Leap Training
      • Leasing Qualification
      • Corporate Training
      • Employee/Personal Training
  • Resources
    • The Climate Reality Project
    • Blog Feed – Academy of Finance
    • Webinars – Academy of Finance
    • Inductions – Academy of Finance
    • Video Classroom
    • General Videos & Announcements
    • CMA on Target Article
  • Contact
  • Student Portal

Blog

  • Home
  • Blog
  • Blog
  • Genius’s Limits Investment

Genius’s Limits Investment

(I can calculate the motions of the heavenly bodies, but not the madness of the people)

Success accrues not so much to the brilliant as to the disciplined. —William Bernstein

Isaac Newton advanced science and thinking like few others ever have. With an IQ of 190, and the ability to calculate to the 55th decimal by hand, his intellect towered above Charles Darwin and Stephen Hawking. But powerful as his brain was, it was unable to save him from falling prey to our most basic human instincts, namely, greed and envy.

In 1720, as shares of the South Sea Company began to rise and hysteria swept the streets of London, Newton found himself in a precarious situation. He bought and sold the stock, earning a 100% return on his investment. Except shares of the South Sea Company rose eightfold in under six months, and they did not stop going higher just because he decided to collect his profits. Unable to cope with the feelings of regret, Newton jumped back into the stock with three times the amount of his original purchase. He re-entered as shares approached their apex and instead of doubling his money, he would lose nearly all of it. When the bubble burst, it took just four weeks for prices to plummet 75%.

This left Newton despondent, and it is said that he could not stand to hear the words “South Sea” for the rest of his life. He got an expensive lesson in just how far intelligence goes when attempting to turn money into even more money. When asked about the direction of the markets, Newton replied, “I can calculate the motions of the heavenly bodies, but not the madness of the people.” Isaac Newton actually was one of the smartest people to ever walk the earth, and not even he was able to resist the sight of other people getting rich without him.

  • Share:
author avatar
academy_36a4wv

Previous post

Mark Twain - Don't Get Attached
October 18, 2020

Next post

Stay in Your Lane
October 18, 2020

Leave A Reply Cancel reply

Your email address will not be published. Required fields are marked *

ACADEMY - INDUCTIONS

stay tuned with us

ICMA Graduate Conversion Programme: Batch 29
06Feb2021
IIA Certified Internal Auditor: Batch 8
12Dec2020
CISI Wealth & Investment Management: Batch 1
12Oct2020
ICMA Graduate Conversion Programme: Batch 28
12Aug2020
View Inductions
ACADEMY - BLOG FEED

stay tuned with us

What managers need to know about finance
12Jan2021
Electric Blues: Cost-Benefit of Taxing Electric Car Usage
29Dec2020
Managing the Risks of Emerging Technologies
27Dec2020
Maintaining Skepticism During Crisis
06Dec2020
View all Articles
ACADEMY - WEBINAR FEED

stay tuned with us

Valuation & Distress Analysis in post COVID Era
11Jan2021
Internal Audit during Pandemic times
11Jan2021
Global Zoom CMA Program
26Nov2020
5 Best Excel Tools For Accountants
15Nov2020
View Webinars/Buzz Talks
+94 11 259 1122 +94 777 41 2009
5th Floor, No.403-5/1, Galle Road, Colombo 03.
cma@academy.lkmba@academy.lk
Daily: 9:00 AM – 6:00 PMSunday & Holidays: Closed

All Rights Reserved by Academy. Designed by Pawara Concepst.