Using IQ scores to measure people is extremely efficient. A 15 minute test can give you a good, rough idea of what sort of work a person is capable of. Someone who gets an 85 on an IQ test isn't going to MIT (no matter the effort), whereas a person with a 145 probably could (with effort).
This is mainly useful in situations optimized for efficiency--think mass inductions, as into the army or college, where individually judging people isn't possible. The army can't send everyone to officer school, and Harvard can't give everyone a one-semester tryout.
This isn't the situation faced by investors, who can devote more time to distinquishing people.
This is mainly useful in situations optimized for efficiency--think mass inductions, as into the army or college, where individually judging people isn't possible. The army can't send everyone to officer school, and Harvard can't give everyone a one-semester tryout.
This isn't the situation faced by investors, who can devote more time to distinquishing people.