“There is so much that’s false and nutty in modern investing practice and modern investment banking, that if you just reduced the nonsense, that’s a goal you should reasonably hope for.”
We’ve heard that before. Modern portfolio theory is Buffett and Munger’s favorite martyr child. Having been introduced to the world of investing through Graham and Buffett’s writing, it is nothing less than a mind-opening exercise for me to attend business school and study modern finance. While I try to pound all those complex greek-salad-formulas into my head I often hear this little voice in the back of my mind reminding me that it might all just be a huge waste of time. I feel like I’m in the position of a judge deciding the outcome of a boxing match between Buffett and my university teacher with net worth as the only judging criterion.