Storytelling is an Art…Only Smart People Can Do That
Benil Dani Alexander [Managing Director of Hedge School of Applied Economics]
In the world we live in, it’s not always the best or most accurate answer that wins. The winner is often the one who can tell the most compelling story. Whether it’s in business, medicine, investing, or leadership, the person who captures attention and makes others nod in agreement is the one who holds power. Facts alone are not enough—context and emotion matter just as much, if not more.
If you’re merely intelligent, you might spend all your time looking for the precise truth, assuming that people will naturally see the value in what you present. But if you’re smart, you’ll understand that the most powerful truth is useless if no one pays attention to it. And that’s where storytelling comes in.
The Difference Between Knowledge and Communication
I once read that there’s a crucial distinction between being an expert in medicine and being an expert in healthcare. An expert in medicine knows all the right answers from the textbook. They can diagnose with precision, stay current on treatments, and know exactly how to help a patient—on paper.
But an expert in healthcare understands that medicine, from the patient’s perspective, is often overwhelming. It’s confusing, expensive, and time-consuming. You can have the perfect solution to a patient’s problem, but if you don’t acknowledge their reality—if you don’t communicate effectively—your expertise means little. Your diagnosis won’t matter to the patient who doesn’t follow through.
The Power of Storytelling in Investing
This concept holds true in the world of investing as well. I once read a quote: “It’s easy to maintain conviction. It’s harder to maintain investors.” The most successful investors aren’t just good at analyzing markets—they’re excellent communicators. They have to compel their investors to stay with them through inevitable times of underperformance. The numbers alone aren’t enough to keep people invested; it’s the story behind the numbers that creates trust and commitment.
Some of the greatest names in investing—Warren Buffett, Charlie Munger, John Bogle, Howard Marks etc —are not only brilliant financial minds; they are all exceptional writers. It’s sometimes enlightening and beautiful to read the annual reports of Warren Buffett and Charlie Munger. Their letters to shareholders go beyond numbers—they offer insight, clarity, and wisdom that resonate with readers far beyond the financial community. This isn’t a coincidence. Their ability to tell a compelling story, to set expectations, and to reassure investors during turbulent times has been critical to their long-term success. They didn’t just present data; they communicated the bigger picture in a way that their investors could relate to and trust.
The Emotional Side of Storytelling
Storytelling is not a skill rooted in intelligence; it’s an emotional and soft skill that goes beyond numbers and facts. It requires empathy, creativity, and the ability to see things from another’s perspective. It’s not just about being right—it’s about being heard and understood.
In a world full of information overload, the best storyteller often wins, not necessarily the person with the most accurate answer. Whether you’re a leader, investor, or expert in your field, learning to weave your message into a compelling narrative is a form of smartness that takes you beyond mere intelligence.
Because at the end of the day, it’s not just the truth that matters—it’s how you tell it.
Warm Regards,
Benil Dani Alexander