I know what you’re thinking; The answer should be “both”. You’re right, in that if a person could be both smart and get good grades, that is the best outcome. What if you could only choose one, though? Most people would probably say “Smart”*, but I believe in many cases their actions say the opposite.

I understand this question is really an oversimplification of a larger human dynamics question. However, I wonder if it is better to learn what’s “known” (what is taught in school), or learn what may be unknown (through experience).

The truth is that a person’s overall “drive” (being proactive) and lessons they take away from their own experiences are far more valuable then what they learn from a formal education. Having the skills to understand tough problems and find solutions make any person more valuable then a person with multiple degrees but no ability to solve problems.

So why do companies put more focus on education than experience? I believe the key answer is “drive”. Solving the unknown is only possible if you are proactive in solving it. The opposite of being “proactive” is “reactive”. If you’re reactive, you tend to take what you know to solve a problem. Education helps immensely when you have to be reactive.

So back to the original question. If most people were asked, I believe they would put “being smart” over getting good grades. However, to have the ability to solve the unknown, you have to be proactive. This quality is very tough to learn, and it’s something that is never guaranteed. It’s also hard to quantify. For example, when employers look at resumes, they would always prefer proactive, smart people, but tend to look at education first, as education is easy to quantify.

If a random young person asked me this question, I would want to state that he should be “unknown problem” smart. However, I would probably push him to get good grades and attend a good college, unless I knew he would have the drive to succeed without college. Good grades help you get into a good college. Good college grades help you get a higher salary job. Degrees help the majority be more successful.

Peter Thiel doesn’t believe good grades are that important. I think he’s right for a small minority of people who are going to make it no matter what they do (because they’re smart). Good grades are important for the majority though, and help ensure more then a small percentage have successful careers.