The rich don’t have to be right as much.
When the poor, middle class, or even the remedially rich invest, they need to invest a larger proportion of their wealth. Whether that investment is in real estate, stocks, a new job, an education, and so on, the “rest of us” are making a major life decision.
I like to view investments in terms of risk. As the potential payback of investments increases, so does the riskiness until it gets to the point of being almost binary. Those sorts of investments (like stock in startup companies for example), are very likely to either make it big or be worth nothing, and are about 10 times more likely to be worth nothing than to make it big.
If you have deep pockets you can spread your risk around. You don’t need to be right all the time. You can play the odds that one of 10 or 20 of your investments will have a 50x payoff.
If you’re a “rest of us” investor, you either risk a great deal of your life’s savings on an investment that is many times more likely than not to fail, or you invest in a low-risk package that makes 6%-10% interest and it unlikely to ever break you out of your income stratum.
The rich don’t have to be right as much, nor do they have to work as hard, nor do they have to be as smart.