It helped to spawn their overconfidence, which led to their levels of risk. On a very narrow level, the rise and fall of LTCM parallels the management of our involvement in Vietnam. Defense Secretary McNamara and company, also very smart people, believed they could approach the war using rational systems analysis techniques. But they were dealing with an enemy that wasn't going to allow some equations to govern their behavior. Buffett says there are many people who are smart enough and even smarter than necessary to succeed in investing and also other realm.
People succeed or fail depending on how they apply their brains.
Another Buffett-ism is knowing your limits. LTCM made a similar mistake. My folks let know they'd be happy no matter what I did as long as it was something that turned me on. They're tickled pink now. I hard work, I'm articulate, I have an ear for language, and I read a lot.