Masters In Business: Robert Johnson’s Financial Education Advocacy by Barry Ritholtz
On this week’s Masters in Business radio podcast, I speak with Dr. Robert Johnson, President of the American College of Financial Services, and previously a senior member of the CFA Institute, where he made the CFA Level 1-3 Exams what they are today. You may not be familiar with this week’s guest, but his work likely influences the world of modern finance tremendously. Johnson has been involved with the accreditation process of various financial participants for many years.
Johnson tells how many years ago, Warren Buffett showed up to speak to his class at Creighton University. When the conversation turned to books, Buffett recommended Seth Clarman’s Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor. All of the students in class purchased it. Years later, the book went out of print, and was soon selling for $2000 on eBay. Johnson calculated that if the book was an investment, it would have compounded at 27% annually, noting that even Buffett’s book recommendations are money makers.
At the annual Berkshire Hathaway’s shareholder meeting, Buffett always included a list of favorite books, (which of course does bang up business at the only bookstore in town). He added Johnson’s own book Strategic Value Investing, to the list of recommended works for the annual meeting.
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Next week, we speak with Kelly Coffey, CEO of the $650B JPM Private Bank.