If which ruby shows /usr/bin/ruby instead of /usr/local/bin/ruby , it means you have not set the PATH correctly. I had to add a line: source ~/.profile to the ~/.bash_profile file. Now whenever you bring up the terminal and when you check the PATH, usr/local/bin will come before /usr/bin and the latest installed version will be picked up (which ruby will output /usr/local/bin/ruby)
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