When it comes to teaching investing, Warren Buffett is less than impressed with what business schools teach on the subject.
For Buffett, it is all about knowing how to value a business, and the more esoteric the financial theory, the more it seems to drift from the basic task of determining valuations.
“I think they’ve taught to students a lot of nonsense about investments,” Warren Buffett said at the 2012 Berkshire Hathaway Annual Meeting. “I mean, it is astounding to me how the schools have focused on sort of one fad after another in finance theory, and it’s usually been very mathematically based.”
Buffett’s full explanation on how business schools teach about investing
© 2021 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.