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Ask HN: Why Smart People Still Make Bad Decisions
We like to think that intelligence protects us from bad decisions, but time and time again, we see brilliant minds making terrible calls—whether in business, investing, or even everyday life. Why?
It turns out that intelligence often works against good decision-making. Here’s why:
Overconfidence Bias – The smarter you are, the easier it is to rationalise bad decisions and believe you’re right, even when you’re not.
Paralysis by Analysis – Highly analytical minds tend to overthink, leading to missed opportunities while waiting for the "perfect" choice.
Cognitive Rigidity – Intelligence can make you too attached to your mental models, making it harder to accept when reality doesn’t fit.
Emotional Blind Spots – Many bad decisions aren’t about logic but emotions—something intelligence alone doesn’t solve.
I’ve seen this play out in tech, business, and even personal life. A friend of mine spent years developing a product no one wanted because he convinced himself he was seeing something the market didn’t. Another example? Some of the most successful traders aren’t the smartest—they’re just the best at adapting to new information.
What do you think? Have you ever outsmarted yourself into a bad decision? How do you guard against it?
About me:
I’m Rafael, a senior web developer with 17+ years of experience working remotely for US and European companies. I build scalable web apps, optimize system architecture, and integrate AI-powered solutions. If you’re looking for a contractor, check out my work here:
https://rdsdigitalsolutions.com/
- gus_massa 2y agoI'm still not sure if this is too infomercial for HN ... Anyway, you can try to check the official post in HN about jobs. They will be posted automatically on Monday. Take a look in case you find something useful and perhaps you can post in the freelance thread if it applies. You can peek the last month edition in https://news.ycombinator.com/submitted?id=whoishiring https://news.ycombinator.com/submitted?id=whoishiring but they are read only now.
- toxaco 2y agoThanks for the reply! I usually add a little bit about me at the end of the post as a bonus, helps people as HN doesn't have a strong profile page, but anyway, thanks for sharing, it's much appreciated. I wish you an amazing weekend!
- gus_massa 2y agoA small "available for contracts" or "we are hiring" at the end of a 3 or 4 pages blog post is somewhat usual. If each of your post have an about section that is like one third of the post, people will get angry and write mean comments and flag ypur posts.
- toxaco 2y agoThanks Gus, I will keep it "short" on the next one or find a better way to let people know a bit more about who wrote the question. Once more, I appreciate the answer. I will ask you too that, since we're on this topic... why do you think even smart people make "bad" decisions? Would love to hear your thoughts!
- codingdave 2y agoThe monthly "who wants to be hired page" will be posted on Monday. That is the way to get contracts/jobs on HN.
- toxaco 2y agoAppreciate the heads-up! I usually add a brief note about myself at the end of posts. It helps since HN doesn’t have detailed profile pages. Either way, I really appreciate you sharing this. Also, since we're on this topic... why do you think even smart people make "bad" decisions? Would love to hear your thoughts! Hope you have an amazing weekend too!
- davydm 2y agoan aside: > A friend of mine spent years developing a product no one wanted because he convinced himself he was seeing something the market didn’t there was a product like this that flopped completely back in the 50s: cake mix; turns out, the secret to making it work was simply removing the dried eggs and milk from the mix and making the user add them - now, Great Success for all you know, he _is_ onto something, and just ahead of his time; however, there's also a rational discussion that people should have with themselves when the thing they're trying to do isn't working right now - pivot to something that is, and put that idea on the back burner
- toxaco 2y agoI love that insight! I’ve always wondered about those cake mixes...why make people add eggs and milk if it's supposed to be complete? Haha, but it makes sense; it gives that "chef" feeling and a sense of involvement. Maybe my friend was ahead of his time, but I also wonder if it was more about emotional blind spots. It’s easy to convince ourselves that we see something others don’t, even when the signs suggest otherwise. Have you ever found yourself in a similar situation?
- chrisjj 2y ago> We like to think that intelligence protects us from bad decisions I like to think that intelligence protects us from classifying decisions as bad. Much more useful are e.g. ill-considered, unwise, regrettable and unfortunate.
- toxaco 2y agoThat makes sense... but what about Paralysis by Analysis?
- JohnFen 2y ago> We like to think that intelligence protects us from bad decisions We do? Anyone who really thinks that's true has not been paying attention to the entirety of recorded human history.
- toxaco 2y agoGood point! human history shows that, at least the documented one. Do you have specific examples? just curious here.