Education And Smarts by Investment Master Class

“We start with some good news about your education: simply put, if your goal is to beat the market, an MBA or a PhD from a top business school will be of virtually no help.  Well, it’s good news, that is, if you havn’t squandered tons of money and time at a business school in the single-minded quest for stock market success.” Joel Greenblatt

“I am not putting down the study of economics, business cycles, and even security analysis.  But knowing them does not guarantee success, and if you haven’t a clue about them, there may be hope for you yet”  Adam Smith, The Money Game

“Just as many smart people fail in the investment business as stupid ones. Intellectually active people are particularly attracted to elegant concepts, which can have the effect of distracting them from simpler, more fundamental truths.” Peter Cundill

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[drizzle]Education And Smarts

Education And Smarts - Quotes From Munger, Buffett And More

"If calculus were required, I'd have to go back to delivering papers" Warren Buffett

“Neither my father or my grandfather believed that a degree was necessary, or even useful, in the investment business” Chris Davis

“I spent 10 minutes with the Harvard alumnus who was doing the interview, and he assessed my capabilities and turned me down.” Warren Buffett

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“I don’t think those people who have very special records in the stock markets are necessarily brighter or have more cerebral abilities than the next person.  I think it’s a matter of competitive intensities, understanding one's role, understanding it wasn’t a matter of building a business and having an organisation but achieving the best return on your investors capital.  It’s an internalised drive that’s both competitive and to some degree intellectual that combines all that with the ability to take risk and be comforted by risk. I used to kiddingly say, I liked to watch the moving parts and the moving parts were the stocks that went up and down”  Michael Steinhardt

"To this day, I have never taken any course, anywhere, in chemistry, economics, psychology, or business" Charlie Munger

"I never received a college diploma or a business school degree, but in my youth, in my years in Paris, and ever since, I have been studying constantly.  I study people, I study life, I look and listen and read,  I have never found learning about anything a waste of time.  Everything I ever learned has helped me on Wall Street" Roy Neuberger

“I was convinced picking stocks was something any kid could do, and I tried to make it fun and keep it simple. The math part – accounting and spreadsheets – I figured that I could learn later”  Shelby Davis Jnr

"The business schools reward difficult complex behaviour more than simple behaviour, but simple behaviour is more effective" Warren Buffett

"The first thing I'd say very clearly, I'm no genius. I was not in the top 10 precent of my high school class. My SATs were so mediocre I went to Bowdoin because it was the only good school that didn't require SAT's and it turned out to be a very fortunate event for me" Stanley Druckenmiller

"I did not do particularly well in school, I am easily distracted, and I have always been forgetful - not the list of personality traits likely to appear in a help-wanted ad for any profession"  Leon Levy

“I was a very ordinary kid, and a less than ordinary student” Ray Dalio

"I think people who go straight to college where they major in business and then rush out to the trading world often lack the needed judgement and intellectual curiosity.  Sometimes people who have studied more broadly end up being terrific investors with a lot more perspective and ideally a value system that reinforces that"  Josh Friedman

“A history degree is far more useful than a CFA [Chartered Financial Analyst].” Crispin Odey

"Current finance classes can help you do average" Warren Buffett

"You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and in life. You've got to hang experience on a latticework of models in your head." Charlie Munger

"Most of the top-ranked business schools around the world do not understand the fundamentals of margin of safety" Mohnish Pabrai

"I think diversification and all that stuff they're teaching at business school today is probably the most misguided concept anywhere" Stanley Druckenmiller

“Unlike most people on Wall Street, I never went to business school, and I didn’t study business in college [I majored in psychology at the City College of New York and was turned down when I attempted to get into the course on advanced securities analysis]”. Leon Levy

"Everyone has the idea of owning good companies. The problem is that they have high prices in relations to assets and earnings, and that takes all of the fun out of the game. If all you needed to do is to figure out what company is better than others, everyone would make a lot of money. But that is not the case. They keep raising the prices to the point when the odds change. I always knew that, but they were teaching my colleagues that the market is so efficient that no one can beat it. I knew people in Omaha who beat the pari-mutuel system. I never went near a business school, so my mind wasn’t polluted by this craziness. People are trying to be smart—all I am trying to do is not to be idiotic, but it’s harder than most people think.” Charlie Munger

“Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.”   Peter Lynch

“Being open-minded is far more important than being bright or smart” Ray Dalio

"I sometimes ask myself, ‘If you had the choice between either Oxford/HBS and the education that you get around Warren Buffett, Charlie Munger, Ben Graham, etc.’ I think hands down Charlie Munger, Ben Graham and all of that is much better, for me at least." Guy Spier

"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with a 130 IQ.  Rationality is essential" Warren Buffett

"Investing is not rocket science. Temperament and understanding predictably irrational human nature is likely more important than raw intelligence. It’s a great relief to know I don’t have to be a Stephen Hawking to rise above the tyranny of the crowd. The lone wolf can accomplish the unexpected if he keeps his wits while those around him are losing theirs."  Frank Martin

“Despite the number of actual “rocket scientists” who have flocked to the investment business, securities prices aren’t subject to Newtonian principles, only behavioural ones” Seth Klarman

"Investing certainly requires that we 'do math' .. but's its not rocket science" Christopher Parvese

"At the end of the day, investing is not rocket science.  Productivity and dedication can be much more important differentiators than raw brain power.  Intelligence helps, but whether your driving a Porsche or Ferrari doesn't matter too much if the speed limit is 65MPH" Lee Ainslee

"Value investing requires more effort than brains, and a lot of patience.  It is more grunt work than rocket science.. It merely

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