A Quote by Warren Buffett
Investment students need only two well-taught courses - How to Value a Business and How to Think About Market Prices
Related Quotes
In our view, though, investment students need only two well-taught courses-How to Value a Business, and How to Think about Market Prices. Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business who's earnings are virtually certain to be materially higher five, ten and twenty years from now.
To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these. That, of course, is not the prevailing view at most business schools, whose finance curriculum tends to be dominated by such subjects. In our view, though, investment students need only two well-taught courses - How to Value a Business, and How to Think About Market Prices.
Business education must constantly be changing and being updated to improve the quality of the student experience. On line courses will be a key part of supplementing course offerings and providing opportunities for life-long learning. Like any industry, business schools must continue to think and re-think how they add value to students and create thought leadership.
Nobody talks about how Puffy went to Howard University or about Lil Wayne attending the University of Houston. All the young kids know is what they see on the videos. They don't realize that these guys have taken managerial and business courses, and know how to brand and how to market themselves. They're very smart.
What is wrong with encouraging students to put "how well they're doing" ahead of "what they're doing." An impressive and growing body of research suggests that this emphasis (1) undermines students' interest in learning, (2) makes failure seem overwhelming, (3) leads students to avoid challenging themselves, (4) reduces the quality of learning, and (5) invites students to think about how smart they are instead of how hard they tried.
I've taught a college journalism course at two universities where my students taught me more than I did them about how political news is consumed.
Value in relation to price, not price alone, must determine your investment decisions. If you look to Mr Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor. If you insist on looking to Mr Market for investment guidance however, you are probably best advised to hire someone else to manage your money.
A successful business must have a sound knowledge of its market and work on how its product or service will be different, stand out and improve people's lives. If you can ensure it responds to a real need in the market place, your business can punch well above its weight.
Sometimes, we need an obstacle to challenge us and push us further than we would if things were always status quo. I'd say one example is the market crashing. It's like, just when we started to get into a rhythm, everything changed! But, it taught us a great deal about how we do business and how we can improve.
Business has a way of talking about how to create value, which is in some way isn't bad... We just need to start thinking about if the value we want to create is consistent with all social and environmental well being.
It is not nearly so important how well a message is received as how well it is sent. You cannot take responsibility for how well another accepts your truth; you can only ensure how well it is communicated. And by how well, I don't mean merely how clearly; I mean how lovingly, how compassionately, how sensitively, how courageously, and how completely.
There are students whose religious upbringing is going to make them feel uncomfortable in a class where certain kinds of secular ideas are presented. There are students whose ideas about history or sexuality are going to be similarly challenged to question, to affirm or to change those ideas. That doesn't mean they shouldn't be exposed to them; that's why they're at school. That's why they come to university: to be taught how to think well and critically about material that they're being presented with. But it's the teacher who is certified to teach them how to do that.
When we do an investment, we always ask, 'Can we affect the outcome? When buying a company, can we have an impact?' That's a different style of investing than a passive investor in the stock market. To me, that's how you're taking the risk out of it. You know what your capability is and how you can enhance value.
The question is really how do we think seriously about this mechanism called a market. It ought to be determining not values but prices.
Business schools are failing to teach the students about the risks of market failures. We need to include some material on market failures in the core of curriculum.
The business plan should address: "How will I get customers? How will I market the product or service? Who will I target?" The principles of a business plan are pretty much the same. But after page one to two, everything is unpredictable, because costs or competition will change and you don't know how things will be received by the market. You have to be able to continually adapt. Companies that fail to adapt will die. Others are brilliant at adapting.
Related Authors
Bill Gates Quotes
American
Businessman
Charlie Munger Quotes
American
Businessman
Dieter F. Uchtdorf Quotes
German
Businessman
Elon Musk Quotes
South African
Businessman
Henry Ford Quotes
American
Businessman
Jim Rohn Quotes
American
Businessman
Joseph B. Wirthlin Quotes
American
Businessman
Mark Cuban Quotes
American
Businessman
Mark Zuckerberg Quotes
American
Businessman
Peter Drucker Quotes
American
Businessman
Richard Branson Quotes
British
Businessman
Russell Simmons Quotes
American
Businessman
Sam Altman Quotes
American
Businessman
Steve Jobs Quotes
American
Businessman
Tom Peters Quotes
American
Businessman
Walt Disney Quotes
American
Businessman