Study says being rich is determined by chance rather than intelligence or talent

[Name: Claudio]

Some people get a rich since they are intelligent when it comes to 💵, some people are intelligent when it comes to ideas and thinking and they focus to conduct research to produce results rather than using it to become rich, that's also another reason,

But there are few people who are given a chance to become rich! Some grab the opportunity and some ignores it, that's also another story my friend... People has their own reasons...

[Crytptomeniac]

More often than not we have people who are getting rich through sheer and utter luck and it has nothing to do with being intelligent or being talented, some just by being in the right place at the right time or meeting the right person at a particular time. Not saying there are not people who got rich by being intelligent and talented but it is more by chance.

[JPablo]

They say that chance only knock ones you have to grab it but also you have to do something you have to work on it wisely. Chance combined it with intelligence it will be better a chance to be rich.

Yeah I will agree.Its not about how inteligence we are but on how we grab the opportunity that comes our life to take the stage to feel the happiness of being wealthy.

[Opekin]

They say that chance only knock ones you have to grab it but also you have to do something you have to work on it wisely. Chance combined it with intelligence it will be better a chance to be rich.

Y3ah I will agree.Its not about how inteligence we are but on how we grab the opportunity that comes our life to take the stage to feel the happiness of being wealthy.

Who knows if its the chance and if you missed it? A chance for me is only a start and its all up to you to work on that opportunity if you grab it what would you do. I disagree because i believe in a peoples intelligent than waiting for that chances. Opportunity is everywhere if you will just open up your mind to all that possible things.

[Hell-raiser]

This is true. There are a lot of people who have worked hard their whole life and have nothing to show for it and I have met very intelligent people, some with incredible talent but they never made it and they never turned out rich, then you see people who are just starting out with no talent or brians, a slight turn of events and they end up rich with more money than they can use.

There is no way to deny that luck plays a factor when it comes to be rich, after all if it was just about working harder or to have the talent then all the people that work hard or that have talent will become rich and that is impossible, but at the same time those that were able to become rich have something else going on for them they have some kind of natural intelligence when it comes to money.

To begin with, I agree with you and your point in general. Just by hard work and intelligence alone, you won't become super rich like Bill Gates or Warren Buffett. I don't know much about Buffett and his lucky star, but Gates once upon a time had more luck than a few hundred people may have in their entire lifetime. With that said, though, if you are slightly more intelligent that the rest of the pack and not very much unlucky beside them, you can rightfully hope for a decent living even if you were not born into riches, especially if you put a good deal of effort in pursuing this end.

[jona]

Been rich can come by chance but look at other side of this,if not intelligent and talented you can succeeded in anything you're doing in life you will not know how to manage your wealth.

[yanlap]

They say that chance only knock ones you have to grab it but also you have to do something you have to work on it wisely. Chance combined it with intelligence it will be better a chance to be rich.

Yeah I will agree.Its not about how inteligence we are but on how we grab the opportunity that comes our life to take the stage to feel the happiness of being wealthy.

I did not like the statement. This a very rare case. Call it exception. The smartest people who are touchy about technology and who are able to make lemonade of lemons are the people who earn in millions. Have you heard about Saygin Yalcin? He was smarter enough to focus on a problem and came up with an idea of selling cars through internet. It took him 4 years to become a billionaire with his companies throughout the Middle East.

[BaraxLo]

They say that chance only knock ones you have to grab it but also you have to do something you have to work on it wisely. Chance combined it with intelligence it will be better a chance to be rich.

Yeah I will agree.Its not about how inteligence we are but on how we grab the opportunity that comes our life to take the stage to feel the happiness of being wealthy.

The right use of chance. Definitely if someone is much intelligent and talented but they aren’t getting any chance, how will they be telling the world about their talent and intelligence? These three have to be in a couple for better results because if one of them either wouldn’t be present, things wouldn’t be good enough. We have to keep these three with us every time.

[boksoon]

If you’re so smart, why aren’t you rich? Turns out it’s just chance

The most successful people are not the most talented, just the luckiest, a new computer model of wealth creation confirms. Taking that into account can maximize return on many kinds of investment.

The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a report last year concluded that just eight men had a total wealth equivalent to that of the world’s poorest 3.8 billion people.

This seems to occur in all societies at all scales. It is a well-studied pattern called a power law that crops up in a wide range of social phenomena. But the distribution of wealth is among the most controversial because of the issues it raises about fairness and merit. Why should so few people have so much wealth?

The conventional answer is that we live in a meritocracy in which people are rewarded for their talent, intelligence, effort, and so on. Over time, many people think, this translates into the wealth distribution that we observe, although a healthy dose of luck can play a role.

But there is a problem with this idea: while wealth distribution follows a power law, the distribution of human skills generally follows a normal distribution that is symmetric about an average value. For example, intelligence, as measured by IQ tests, follows this pattern. Average IQ is 100, but nobody has an IQ of 1,000 or 10,000.

The same is true of effort, as measured by hours worked. Some people work more hours than average and some work less, but nobody works a billion times more hours than anybody else.

And yet when it comes to the rewards for this work, some people do have billions of times more wealth than other people. What’s more, numerous studies have shown that the wealthiest people are generally not the most talented by other measures.

What factors, then, determine how individuals become wealthy? Could it be that chance plays a bigger role than anybody expected? And how can these factors, whatever they are, be exploited to make the world a better and fairer place?

Today we get an answer thanks to the work of Alessandro Pluchino at the University of Catania in Italy and a couple of colleagues. These guys have created a computer model of human talent and the way people use it to exploit opportunities in life. The model allows the team to study the role of chance in this process.

The results are something of an eye-opener. Their simulations accurately reproduce the wealth distribution in the real world. But the wealthiest individuals are not the most talented (although they must have a certain level of talent). They are the luckiest. And this has significant implications for the way societies can optimize the returns they get for investments in everything from business to science.

Pluchino and co’s model is straightforward. It consists of N people, each with a certain level of talent (skill, intelligence, ability, and so on). This talent is distributed normally around some average level, with some standard deviation. So some people are more talented than average and some are less so, but nobody is orders of magnitude more talented than anybody else.

This is the same kind of distribution seen for various human skills, or even characteristics like height or weight. Some people are taller or smaller than average, but nobody is the size of an ant or a skyscraper. Indeed, we are all quite similar.

The computer model charts each individual through a working life of 40 years. During this time, the individuals experience lucky events that they can exploit to increase their wealth if they are talented enough.

However, they also experience unlucky events that reduce their wealth. These events occur at random.

At the end of the 40 years, Pluchino and co rank the individuals by wealth and study the characteristics of the most successful. They also calculate the wealth distribution. They then repeat the simulation many times to check the robustness of the outcome.

When the team rank individuals by wealth, the distribution is exactly like that seen in real-world societies. “The ‘80-20’ rule is respected, since 80 percent of the population owns only 20 percent of the total capital, while the remaining 20 percent owns 80 percent of the same capital,” report Pluchino and co.

That may not be surprising or unfair if the wealthiest 20 percent turn out to be the most talented. But that isn’t what happens. The wealthiest individuals are typically not the most talented or anywhere near it. “The maximum success never coincides with the maximum talent, and vice-versa,” say the researchers.

So if not talent, what other factor causes this skewed wealth distribution? “Our simulation clearly shows that such a factor is just pure luck,” say Pluchino and co.

The team shows this by ranking individuals according to the number of lucky and unlucky events they experience throughout their 40-year careers. “It is evident that the most successful individuals are also the luckiest ones,” they say. “And the less successful individuals are also the unluckiest ones.”

That has significant implications for society. What is the most effective strategy for exploiting the role luck plays in success?

Pluchino and co study this from the point of view of science research funding, an issue clearly close to their hearts. Funding agencies the world over are interested in maximizing their return on investment in the scientific world. Indeed, the European Research Council recently invested $1.7 million in a program to study serendipity—the role of luck in scientific discovery—and how it can be exploited to improve funding outcomes.

It turns out that Pluchino and co are well set to answer this question. They use their model to explore different kinds of funding models to see which produce the best returns when luck is taken into account.

The team studied three models, in which research funding is distributed equally to all scientists; distributed randomly to a subset of scientists; or given preferentially to those who have been most successful in the past. Which of these is the best strategy?

The strategy that delivers the best returns, it turns out, is to divide the funding equally among all researchers. And the second- and third-best strategies involve distributing it at random to 10 or 20 percent of scientists.

In these cases, the researchers are best able to take advantage of the serendipitous discoveries they make from time to time. In hindsight, it is obvious that the fact a scientist has made an important chance discovery in the past does not mean he or she is more likely to make one in the future.

A similar approach could also be applied to investment in other kinds of enterprises, such as small or large businesses, tech startups, education that increases talent, or even the creation of random lucky events.

Clearly, more work is needed here. What are we waiting for?

Ref: arxiv.org/abs/1802.07068 : Talent vs. Luck: The Role of Randomness in Success and Failure

https://www.technologyreview.com/s/610395/if-youre-so-smart-why-arent-you-rich-turns-out-its-just-chance/

A very interesting spin on anything that has ever been said about money, success or wealth!

I don't know what to think about this. The scaling argument which says 1% of the human population shouldn't own 40% of the world's wealth due to them not having IQ's of 200,000 or talent proportional to the highly disproportionate stake of wealth they control is something that will take time for me to digest and think about. Its certainly a novel concept.

Its also very interesting that they attempted to model along lines of standard deviation and wound up with a historical 20/80 wealth distribution. I think this is something which could use more exposure and media coverage. Its not often relatively original or new perspectives like this come along and the paradigm shift which can accompany them can often take decades to be fully appreciated within a pop culture vein.

Many different aspects to the people become rich but the main  source of this is "INTELLIGENCE" All people achievers are coming from their Intelligence tactic. let say you are a wealthy person since birth but because of wealth  you can quick decide to invest your money because you have enough capital to invest. Question? what's the subject here.  Answer"INTELLIGENCE" because if you are not intelligence you can't do it on how to start business to become rich.

[Gaff]

They say that chance only knock ones you have to grab it but also you have to do something you have to work on it wisely. Chance combined it with intelligence it will be better a chance to be rich.

Yeah I will agree.Its not about how inteligence we are but on how we grab the opportunity that comes our life to take the stage to feel the happiness of being wealthy.

The right use of chance. Definitely if someone is much intelligent and talented but they aren’t getting any chance, how will they be telling the world about their talent and intelligence? These three have to be in a couple for better results because if one of them either wouldn’t be present, things wouldn’t be good enough. We have to keep these three with us every time.

This topic can have a broad sense in getting people's attention where different point of views come into place depending on each personal experiences. Richness can be attained through hardwork, perseverance and constant effort. I strongly believe that personality and having a positive attitude can have a greater impact on success. Be it a chance, intelligence, or talent as long as you put your sincerity, productivity and heart with what you do, it can bring you farther.

[djselery]

I think this is true only in special cases, like gambling for example (or even trading sometimes), but in the most cases being rich is the result of hard working and of course having talent and intelligence. When you re gambling you depend only on luck almost, but the risk of losing is also very high, it is surely not the shortest way to become rich.

[nethan1btc]

Many people will depends on their chance which will rely on their luck just like playing lottery. As far as I know most of people winning on lottery are those people who are just ordinary people, not as talented nor intelligent which means only luck can tell everything. On the other hand, those talented and intelligent people use their skills in order to earn much more money by their hard work and effort which they can be proud.

[Chusnul]

I would expect that the humanities and the arts offer the most opportunity for fluid intelligence. The performing and creative arts (music, dance, sculpture, painting,and stage acting) are all areas where creative expression flourishes. For those who enjoy pondering deeply in fluid ideas, the humanities offer philosophy, ethics, and religion. Areas of psychology, history, anthropology, sociology etc. study human ideas and development that entertain our imaginations and ruminations.

[Ulan01]

I think the rich because you were born from a rich family, this will not be long. unless he still wants to try and be smart. without it, no matter how much wealth it has will soon be lost. so in my opinion to be rich, we need willpower, intelligence, and good fortune.

[celcoid]

Being rich is determined by chance rather than intelligence/talent is practically true and it is also called lucky. There are many reasons on how to become rich and its up to us on how we do it. But it is really difficult to become a  millionaire if we are only working in a company wherein our salary is only enough for our daily needs. This is the main reason we joined the crypto space in order to be financially free.

[toolucky98]

I will never agree with pure luck, do you know that you can increase the chance of your luckiness or decrease the chance of misfortune with hardwork / intelligence.

[Blue Bell]

I think the rich because you were born from a rich family, this will not be long. unless he still wants to try and be smart. without it, no matter how much wealth it has will soon be lost. so in my opinion to be rich, we need willpower, intelligence, and good fortune.

Exactly nothing happens without hard work and without any will power, if you are intelligent and you are skilled then it will be good because you will be able to get free bitcoin with your intelligence but if you want to invest and depend on luck then you will have to invest your capital but being skilled will give you free bitcoin without investing anything. So your sharp mind can make you rich easily without investing anything.

[teleskopta]

Being rich not determine by chance rather than intelligence or talent. A good example Mr Bill Gates the person who become rich using his talent. The example of the person who become rich because of the chance are those person with skill with the help of other person in giving his chance to explore his talent.

[fokinlipat]

I do not think one become rich by chance, it is all about proper planning that only a few people do. In order to fall under the umbrella of "Financial Responsibility" most people understand that they need to start planning early. However, despite best intentions, often times the culprit called life gets in the way. Home improvements, car repairs and unexpected job losses all seem to come together to put a kink in even the most well-laid financial plans.

[tagirl]

I do not agree that one can get rich by chance. To keep yourself closer to the financial finish line, there are a few common financial pitfalls you can avoid.