The quest to become a physician is among the most rigorous of intellectual pursuits, and people who follow that path tend to be exceptionally bright. But paradoxically, that can hamstring their ability to invest wisely.
Because they are highly respected for their intelligence, physicians may assume their understanding of complex issues will naturally translate to financial matters. But that did not stop Mark Gurland, MD, a New Jersey hand surgeon, from investing based on tips and hunches. Dr. Gurland told The New York Times he took the advice of a cardiologist friend and pumped money into fiber-optic cable. He lost nearly all his investment. He also lost money on a company that was marketing a drug related to hand surgery.
Now, Dr. Gurland says, he leans on the advice of a financial adviser.
Part of the difficulty for physicians is that they often think investing is a science, but it’s actually an art, Greg Erwin, Managing Principal at Oregon-based Sapient Private Wealth Management, told The Times. Moreover, while physicians have the intellectual firepower to grasp complicated subjects, they often don’t have the time to dedicate to understanding what goes into sound investing.
“They’re very methodical thinkers, but they’re also extremely busy,” says Erwin, who takes pains to explain to physicians the perils of blindly investing based on tips from friends.