One of the most important thing that (except for a very very few top rated) B-Schools do not and cannot teach you is to take on risks. All through out my life quite a few number of MBA's that I have met are risk averse. They prefer to hold not less then 20 stocks, would rather buy the top rate blue chips, hold 25% of their portfolio in cash, put money in stupid LIC policies(under returns that barely beat inflation) invest in 8% R.B.I bonds etc etc. The Dhirubhai Ambanis and the Anil Agarwal are all from the non MBA fraternity. true their children will do MBAs and manage the business very well but that is after a platform has been set for them. Probably the formal teaching that these schoold undertake are quite related to the phrase " Manage Risks" " Control Risks", Hedge your portfolio, diversify, start taking small steps and the likes.
Stock Market investing is more about character then knowledge. In the recent turmoil that we witnesses I know many smart people who sold off only to buy it later whether they get the stocks or not is another issue but they are still witing and my sense is that they would keep on waiting because no body has ever caught the bottom nor sold at the top. As Lynch says a "Market players may have 50% of their portfolio in cash at market bottoms. When the market decides to move up they could miss most of the move."
The MBA institues (especially the 2nd rung ones) with due regard and respect for them should train their students under several situations of stress and see whether they come out of it. True the nature of the CAT exams are such that a student has to cope with more then he can handle but that should be extended to other areas as well.
Edited by basant - 16/Jul/2006 at 10:57pm