The Dumber Side of Smart People
The Morgan Housel Podcast
00:00
Believing Your Own Bullshit
The complexity of economic systems and stock markets makes it impossible to have definitive answers, leading to humility being a superpower in such situations. Highly intelligent individuals tend to create elaborate explanations based on their mental capacity, which can lead to overconfidence. Professional money managers, often very intelligent individuals, may produce poor returns because they believe in their elaborate models rather than accepting the uncertainty of the markets. This highlights the fine line between intellectual rigor and falling into the trap of believing one's own elaborate explanations.
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