from Hacker News

Ask HN: Why Smart People Still Make Bad Decisions

by toxaco on 3/1/25, 4:57 PM with 12 comments

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/

  • by gus_massa on 3/1/25, 5:12 PM

    I'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 but they are read only now.

  • by davydm on 3/1/25, 5:22 PM

    an 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

  • by chrisjj on 3/1/25, 6:53 PM

    > 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.

  • by JohnFen on 3/3/25, 5:30 PM

    > 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.

  • by codingdave on 3/1/25, 5:14 PM

    The monthly "who wants to be hired page" will be posted on Monday. That is the way to get contracts/jobs on HN.