WHY SMART PEOPLE MAKE BAD INVESTMENTS

Why Smart People Make Bad Investments:A Deep Dive into the Paradox of Intelligence and Financial Failure The Intelligence-Investing Disconnect The Smartness Illusion in Financial Markets πThere exists a widely held assumption, often reinforced by societal structures and academic achievements, that intelligence is the cornerstone of success in all endeavors, including investing. This belief, although flattering to our intellectual ego, is dangerously misleading in the context of financial markets. The real-world data and historical evidence reveal that many of the most spectacular investment failures have been orchestrated not by the ignorant or uninformed, but by individuals hailed as geniuses in their respective fields. These failures are not anomalies; rather, they highlight a recurring pattern where cognitive overreach replaces practical humility, and where being "too smart" becomes a liability rather than an asset. The markets, unlike classrooms or laboratories...