Over the years, Warren Buffett has voiced his dissatisfaction with the traditional approach to teaching investing in business schools. According to Buffett, the focus on esoteric financial theories often leads students away from the fundamental skill of valuing businesses.
Buffett, speaking at the 2012 Berkshire Hathaway Annual Meeting, criticized the emphasis on mathematical-based finance theories, labeling much of it as “nonsense.” He has highlighted the tendency of business schools to latch onto passing fads in finance theory, which he believes detracts from the essential task of determining the true value of a business.
For Buffett, successful investing hinges on a deep understanding of how to evaluate a business rather than on complex financial models. His critique underscores a broader debate within the investment community about the efficacy of traditional investment education and the importance of practical, fundamental analysis.
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© 2024 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 a 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.