Intelligence, knowledge, wisdom, discernment and good temperament are five distinct attributes a man or woman can possess. It is a common mistake to believe that they are interchangeable. They are not. Although they tend to be related, it is possible to have one without the others. How they interact with one another can determine the success or failure one experiences in life, to the extent we can control things, so it’s important to learn how to maximize your advantages and mitigate your flaws by becoming self-aware.
Intelligence
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Sherlock Holmes is an excellent example of analytical intelligence driven by deductive reasoning and rationality. Image © Getty Images/Photos.com/Thinkstock
Intelligence is the ease and speed with which one acquire new skills or knowledge. There are several unique subsets of intelligence. There is a theory there are eight types of intelligence but, personally, I prefer to think of them along these lines:
- Analytical Intelligence involves understanding and processing data, such as mathematical formulas or literary subtext. Sherlock Holmes is the very epitome of analytical intelligence. Many sources break down analytical intelligence into distinct sub-categories, one for mathematics and one for linguistics.
- Emotional Intelligence is the ability to understand and control what motivates people, how they work, what the general underlying tensions are, and danger that can’t be explained. Emotional intelligence throughout history has been called “a woman’s intuition”, a “hunch” or a “gut feeling”. Mary Poppins is the epitome of emotional intelligence. She knows what the children in her life really need because she understands what is going on in their hearts and she is able to manipulate (not in a bad way) situations around her to achieve her goal, which is turning well-adapted children into responsible, loving adults.
- Bodily-Kinesthetic Intelligence is the ability to control your body and interact with the world around you. Great athletes and dancers are able to perform intricate tasks, whether diving for gold at the Olympics, playing soccer in the World Cup, or performing The Nutcracker at Kennedy Center.
- Intra-Personal Intelligence is the ability to understand yourself, your motivations, the causality of your actions, and planning your own direction in life. This is someone who has the ability to end up running everything because they were making sure every action was leading them to a specific goal, while others were blindly going through life.
- Inter-Personal Intelligence is the ability to understand the interaction and workings of groups and social structures. A typical example of high inter-personal intelligence is the high school student who is student body president, captain of the debate team, on homecoming court, writes for the school newspaper and leads group discussions during projects.
- Spacial Intelligenceis the ability to mentally manipulate three dimensional concepts, which is a vitally important skill to engineers and artists, one picturing the inner workings of a motor the other visualizing the lines of a sculpture.
- Musical Intelligence is the ability to process, reproduce, analyze and perform pitch, rhythm, melodic and harmonic structure, etc.
- Natural Intelligence is the ability to understand one’s surrounding, adapt and survive. Someone with high natural intelligence would be able to be dropped into a jungle and figure out the best way to survive and escape.
[mainbodyad]In my own case, when I talk about getting lucky with the genetic jackpot, I mean that in a lot of areas necessary to be successful in Western Civilization, I was given a hand at birth that made doing well a lot easier than it would have been otherwise. My analytical intelligence is high, my emotional intelligence is high (though for most of my life, I kept this a secret, using it as a weapon at my disposal by feigning ignorance), my inter-personal intelligence is high, my intra-personal intelligence is high (I am, and have always been, my harshest, most impartial critic as I have zero ego investment in any particular behavior or belief), my spacial intelligence was tested about ten years ago and it was in the top few percentiles, my musical intelligence was sufficiently good that I went to school on a vocal performance scholarship and tested out of a few years of piano performance.
On the other hand, my natural intelligence and bodily-kinesthetic intelligence are terrible. When nature or the gods were handing out their allocation of these areas, I was not favored. If society’s rewards were determined by who could hit a ball or run fastest, I would be in the poorhouse. Likewise, if we were dropped in a jungle, I wouldn’t have a clue what to do instinctively. The result would be the need to rely heavily on analytical intelligence, which would force me to figure out how to create some weapon and kill anything that attacked me, or devise some signaling system. That is, my analytical intelligence would serve as a crutch to prop up my lack of natural intelligence. Put me in a group with someone who has high natural intelligence and we’d likely survive by playing off our combined strengths.
The point is, intelligence by itself is useful but it can be trumped by both the environment in which you operate and other forces I’m about to explain – namely, knowledge, wisdom and discernment. Nevertheless, you should know your own strengths and deficiencies. If the primary role of education is to prepare students to become productive members of society, the school system in the United States focuses far too much on analytical intelligence. Certain occupations, such as counseling or human resources requires high inter-personal intelligence and emotional intelligence. If that is you, don’t be too concerned about your inability to do trigonometry. We, as a society, tell some people they are failures when they are simply being tested on the wrong metrics.
Knowledge
Knowledge is pure, raw data and understanding of how something works. To give you an example, even though my analytical and spacial intelligence is really high, I have no idea how to change my own oil because I have no knowledge of the inner workings of a car. If confronted with the problem, I could likely solve it but I would be left in the dust by someone with a far lower intelligence level and more complete knowledge.
[mainbodyad]Knowledge is gained through study or experience. In some areas, such as statistics or facts, those with high analytical intelligence have an easier time acquiring it (they read something once, understand it and add it to their database of information to draw upon in the future.) In others, such as how to perform a trick play in basketball or a specific dance move in ballet, those with high body-kinesthetic intelligence will be able to pick it up and reproduce the required action with much less effort than their peers.
In my own case, I read tens of thousands of pages of information each year, including books, magazines, newspapers, court rulings, annual reports, regulatory filings, trade journals, etc. I am a learning machine. I do it because I know that someday, that knowledge will be useful to my goal in life. Otherwise, why would I know random things such as the freight rates for shipping a train car of coal from the West Coast to Kansas City ($5,000 to $8,000 before negotiated discounts via Union Pacific), the fact that hotel room rental rates in first-world countries before discounts are generally equal to 1% of the cost to construct the room, and average returns on capital for a wide range of industries?
Whatever you ultimate goals are in life, acquire as much knowledge as possible because knowledge can trump intelligence in many, though not all, cases. If you run a steel mill and you can calculate your cost per tonnage more accurately than a competitor, it doesn’t matter how smart he or she is, you have factual data that can lead to better, more optimized decisions.
Wisdom

Wisdom has long been recognized as a distinct, and unique, attribute that is rare among men. It has been personified and deified throughout all recorded history among most successful civilizations. Image from Wikimedia Commons.
Wisdom “is a deep understanding and realizing of people, things, events or situations, resulting in the ability to choose or act to consistently produce the optimum results with a minimum of time and energy. Wisdom is the ability to optimally (effectively and efficiently) apply perceptions and knowledge and so produce the desired results.”
As philosophy defines it, wisdom is “making the best use of knowledge”. If everyone had equal knowledge, the wisest person is the one who applied it in a way that got him what he wanted without a lot of work or effort. Put another way, wisdom is applying knowledge in the most optimal way to require the least amount of effort or expenditure on your part to achieve your desired goal.
Wisdom is elusive. It is uncommon. Wisdom can trump intelligence and knowledge, though it is often heavily dependent upon the latter. Wisdom is Rose Blumkin, who couldn’t read or write English, building a $100+ million fortune in Nebraska by taking her knowledge of the furniture business and applying that knowledge is unique ways that her competitors couldn’t imagine. Wisdom is when she knew she would sometimes make more money by selling certain products at a loss to young married couples, who would then return to her for future purchases for the rest of their lives.
Wisdom can be substantially augmented by a rational framework. The system proposed by Charlie Munger involving hanging your ideas on a latticework of mental models pulled from the great disciplines in the hard and soft sciences has fundamentally altered the way I approach life and resulted in far greater output for equal effort.
Discernment
Discernment is “the ability to judge well”. The word has taken on an inherent religious context over the past few centuries due to its use in scripture.
Discernment is the still small voice inside that tells you when a course of action, which may appear wise, isn’t quite right or that it would be damaging to your morality. Discernment can be summed up as knowing how to act in order to “avoid evil, do good”, as most sources put it.
By its very nature, discernment is tied inextricably to the moral underpinnings of a society. Consider that it is patently unacceptable in Christianity, Judaism and Islam to accept usury on lent money. Yet, virtually no one in the United States or the civilized world has any conviction whatsoever about seeing interest income deposited into their checking account at the bank.
Temperament
Temperament is the master that drives the other four forces in life if left unchecked. Temperament is King, as it has the power to accelerate or demolish all efforts.
What, exactly, is temperament? The best definition is “the natural, default, innate bias toward action and thought” a person has. You know this already. Think of the people in your life. You know folks who have a natural state leaning toward happiness or depression, activist or victim, active or passive, pleasant or mean, selfish or generous, etc. You often hear family members say, “She’s always been that way …”
There is a reason that so many of the people who are successful in certain fields are alike. The top scientists often have a lot of personality traits that are similar, as do those who rank on the Forbes 400. That is because certain disciplines call for certain temperaments to be successful. Scientists with a bookish, insular, cerebral temperament are more likely to be successful because they would rather be thinking about chemistry and physics than tripping on acid at a rave party.
It doesn’t matter how intelligent you are, how much knowledge you have, how deep your wisdom, or how powerful your discernment, if you have a natural temperament that inclines you to get your kicks by going out and getting drunk on the weekend, smoking yourself into an early grave, engaging in rampant promiscuity, lying, cheating, stealing, or taking unnecessary risks, it is only a matter of time before you fail or die. Much of the success of the world’s religions can be accounted for in the fact that they served as a mechanism for society to control those with ill-leaning temperaments.
It may be unfair, but there is a great deal of science that indicates temperament is the result of genetic brain chemistry. The Church, misguided, for centuries called these “spirits” … as in, “He has a spirit of gambling.” It turns out it was just a byproduct of selective reproduction that calls for a wide range of variable outcomes to propagate the species.
More specifically, scientists now know that temperament is heavily tied to the production of dopamine in the brain. People like me, who are perfectly content staying home and making a meal with friends and family on a Sunday afternoon have high levels of internal “happiness” drugs floating around in our heads. When I see a beautiful pair of cufflinks, my heart rate accelerates, my voice rises, and my body temperature increases. I get an adrenaline rush and an emotional high.
Someone who engages in skydiving or BASE jumping, in contrast, is far more likely to have low absorption or production of dopamine. To get the same joy I experience by reading a good book, they literally need to hurl themselves off a building. It’s not that they are stupid or unstable, their temperament is dictated by their brain chemistry. It may be unfair, but the reality is it takes far more effort for them to get a natural rush of excitement than it does me. We, as humans, need this diversity on a macro scale because it makes our survival odds higher.
Temperament is not destiny, though. It means that the difficulty with which you have to struggle against your temperament is likely beyond your control, not your actual success. Just like being tall or short, white or black, gay or straight, male or female, temperament is decided at birth and/or through some combination of external interaction with genetics. Some people are naturally inclined toward being hateful and disagreeable. If they want to be successful in life, they will have to overcome that, even though for other people, it is effortless. Or, even better, they could become a political commentator and profit off their natural disposition.
Instead of whining about how unfair temperament is, find a way to overcome your own temperamental shortcomings and play to your strength. My brother, who is still deciding on his ultimate career, was wise enough to know that his temperament is sometimes inclined toward moodiness, so he doesn’t want to become a doctor that has to deal with patients and “their stupid questions”. If he goes into medicine, he would rather be a surgeon or something comparable where they have a highly skilled task to perform and then go on to the next item.
Reader Comments (9)
Comments are presented chronologically, with replies indented beneath the comments to which they respond.


Austin H
October 22, 2010
"A typical example of high inter-personal intelligence is the high school student who is student body president, captain of the debate team, on homecoming court, writes for the school newspaper and leads group discussions during projects."
I've never looked at myself as intelligent in that sense- I was student body and district president, tennis team captain, sohpomore homecoming king, cheerleader escort, wrote and sold ads for the newspaper, step team and graduated top 2%. I'm a modest person, and don't mean to come across haughty, but your description was dead on.
My ability to comprehend systems allowed me to graduate at the top of my class in college too.
I am in corporate commercial sales right now which has a lot less to do with emotional intelligence than I had originally thought. It's much more along the lines of focusing on what I can push that has a high margin and a competitive advantage over the competition. In other words, understanding the system to maximize my take home pay.
Following RMIT guidance, I should (and would love to) do something along those lines... what type of company could I start? How could I profit off of it besides becoming a politician and later board member.
I would say I am easily in the bottom 10 percentile for spatial intelligence-
Joshua Kennon
November 5, 2010
Replying to Austin H
Austin, I think that pure social intelligence is probably more valuable in a lot of fields than analytical intelligence alone. As I once quoted on here, "People don't remember if you were right or wrong, they remember how you made them feel." Of course, in investing analytical intelligence is vital but the point is, a lot of business is relationships. If you have the ability to strike up relationships, and make people feel good about themselves, and want to talk to you, then you can sell them things or find solutions to their problems. People like doing business with folks they enjoy being around and hate doing business with people they don't like. With a skill set like that, you are much further ahead than the average guy if you can figure out how to leverage it right.
Austin H
November 5, 2010
Replying to Joshua Kennon
Thanks Joshua.
I'm going to give sales a try before applying to business school. My coworkers in their late 20s are taking home 200-300+ and I'm confident I can do better. If I keep living on 24k and investing the rest, I'll hit "my number" sooner than later... especially if/when I can buy into your hedge fund.
I'd like no one to take my '2 and 20' more than you after all the free advice I've recieved coupled with our paralleled views on gays, religion and living below ones means. I actually really appreciate your lack of sypmathy for laziness and excuses.
Austin
Michael Starke
January 30, 2013
I like to think that I am rather similar with regards to the aspects of intelligence, perhaps ratcheting down emotional and musical by a notch or two, and ratcheting up natural by a notch or two. I also find that I use analytical intelligence to bolster where I fall short in other areas. Thankfully, so far in my life my high intelligence (and the balance of the constituent aspects) have made accomplishing nearly all of the things I have chosen to apply myself possible. I also have a rather "even" temperament, and don't take crazy risks to get that sense of "high." I cannot say I've ever gotten amped up over a book, but coding a complicated algorithm, and seeing it work the first time, heck yes.
I would like to think that you and I have a lot in common. You seem to have found your "mojo" and hit your stride quite a bit earlier in life than I did, but my goals and ambitions are different, requiring a different game plan. I have no doubt that if I continue to take appropriate, well-compensated risks, I will reach my goals. I largely attribute my not being "there" yet to the fact that I have neither acquired the knowledge nor developed the wisdom necessary to have obtained those achievements. To abuse an analogy from RPGs, I haven't leveled up my skills and attributes enough to even think about tackling some of the quests I see before me on the horizon, but I'll get there someday.
Sebastian S. Smith (TheSwiss)
December 26, 2016
Trying to figure some things out about myself and your article was very insightful. I was completely following you until your comments about temperament. I have worked in the chaos of a traveling carnival for over a decade and have loved it more and more each passing year; I also have always wanted to go hang gliding as I think it would be fun. Yet, I equally love to sit by myself and write, work, or read for hours.
What are your thoughts about this? Would you say I have a variable temperament? I have always had a somewhat unusual openness to change, compared to my peers and others around me—so I am thinking this may have something to do with equally enjoying either ends of the temperament spectrum. I am interested in your thoughts.
K
March 26, 2017
Bingo! You wrote exactly what I was contemplating. I, too, am unusually open and adept to change (as long as the change does not include violations of my personally held convictions and faith system).
I attest to knowing people who appear to have a temperament in which they are only able to find their bliss in one extreme or the other. I, however enjoy the thrill of high physical challenges that include a certain amount of risk. I also deeply enjoy my alone time to read, write, and ponder many subjects. I also experience great pleasure in the time I spend with family and or friends.
I might add that my 21 year old son and my 19 year old daughter also have a very similar breadth of temperament that I have. On the other hand, my husband of 23 years has a very narrow temperament.
I have noticed that each of our temperaments have seemed to deepen as we have aged. My tempermant, as well as the similarly shared temperment of each of our children, have continued to strengthen through a deepening and expansion of our experiences and interests. My husband's temperament has deepened by continuing to become more narrow and shallow with his interests and experiences.
I am thinking the key differences are the ability to be present minded and the ability to be authentic in who we are at all times.
Perhaps their is a temperament or discipline that is rather built into some of us which is more easily inclined to being fully present no matter what spectrum of activity is taking place? I derive enjoyment from within and from without.
My husband seems to only be able to enjoy life from without. He has to be "entertained" and is hardly able to be a contributor of his own experiences. He is not able to manufacture his own pleasures. He is unaware of who he is and can be quite exhausting to be "around". I use the term "around" because being "with" him is not possible.
He, however, owns and runs a very profitable company. I am sure his abilities operate mostly within an above average level of various types of intelligences but, his temperament doesn't seem to afford him the enjoyment of process. He gleans satisfaction of being able to know that he has successful results from his vocation.
The other key differences between our temperaments that I find striking are the abilities to think globally as well as to think in detail. Adding to my point, he does not find any enjoyment in refining details in order to achieve a more developed experience or result. He cares little for expending his own energies towards exactness or excellence.
Where as, I experience pleasure in creating and refining most experiences.
I am interested in knowing what thoughts you have on there being an additional temperament of being present minded (not to the exclusion of forethought and making appropriate preparation for the future). Do you think that type of temperament would help to better "categorize" my points and observations?
Jason
October 2, 2017
Ok, so where is the Moral Intelligence? Why is that absent from this list?
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Bilkiss Dhar
January 4, 2024
Liked lot your article which confirms humbly my way of life.
Can temperament be substituted by'character'.?