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basant
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bullet Topic: MBA's and risk
    Posted: 16/Jul/2006 at 8:25pm
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
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Ambarish
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bullet Posted: 16/Jul/2006 at 9:46pm

As far as People are concerned I cannot comment and believe that they act so in fear, may be because they deal in such a high amount of money and as far as B school are concerned I haven’t been to one yet but what I hear from my friends is that there are activity groups and finance club for example, IIM ahemdabad: - BETA IIM Banglore:-

They Have Papers like Risk Management etc. so it would be unfair to say something About B Schools just with few personal encounter as the sample base is to small and there is no diversity in it to get a correct view we must analyze the risk taking ability of MBA’s/ Management students from all walks of business.
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maag
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bullet Posted: 16/Jul/2006 at 10:10pm
Obviously that had to be it Ambani etc etc started poor they started from where they could not lose and so they took their bets. An MBA grad knows that he can earn and therefore is at a certain level of wealth matrix so why should he do anything that would make him reckless.
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Ambarish
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bullet Posted: 16/Jul/2006 at 11:03pm
 the man u r refering to is dhiru bhai ambani he never was an mba nd so he is out of context here and if we take his 2 sons both are mba's and both have a huge fortune of billions  to loose and both are not new in taking risk. i say it again as i did in my earlier reply that the sample base has to be big enough to take into a/c all the b school of india or for the matter the world if u want just a few name's there were two alumni of iim a last year who refused to take up jobs nd finacially be secured and took the risk of starting a new business and i'm sure if u look around u'll find plenty more 
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bullet Posted: 16/Jul/2006 at 11:42pm
Right you see the proportion of people who refuse to take jobs and set up private businesses. From what you said about 2in a few hundred is a very small proportion include all the IIM's and u will know what i am referring to. Even the ones who refuse jobs make headlines not the ones who take (they make coz how much they are able to earn) so obviously there is something unique about starting  a business immdediately after getting an MBA degree.
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bullet Posted: 16/Jul/2006 at 11:47pm
Guys. what are u talkin abt? I hears that IIm bang calls students at 3.00 in the morn if that is not teachin how to handle stress then what is and for risk i am yet to come across an MBA who says that after doing his degree he will start a new stuff - he slways says that he will start something but after pitting away a few crores in his bank. Is that  taking risk.????
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bullet Posted: 16/Jul/2006 at 12:30pm
its all about one's perception abt how thing's are as far as the topic concerns since its in relation with bschool teachin their student in taking risk i'll just point out few facts here rest u may think what u want in every b school there are diffrent kind of clubs in relation with finance marketing etc etc i'm just naming a few here
IIM Ahmedabad:-
IIM Banglore     :- Networth
IIM Calcutta      :- dhan
IIM c also has tradbuzzThe FinClub’s Online Stock Trading Game. Pit yourself against the real stock market. Prizes up for grabs!
and if youwant further information u can look up their site
n
Further The b school's have a subject know as risk management now if  they dont teach abt taking risk 
again if i look up diffrent mutual fund u'll find hem full of mba's i'll just site an example taken from this forum itself pls refer to topic reliance tax saver now there is an mba taking risk would'nt u say
and finally only someone from the b school itself who's been their in the mids of chaos and everythingelse can really have a final say in this
nd finally u can belive whatever u want it all abt one perception it may be that i'm wrong but i dont see ne thing to support that fact yet but if u have nething go ahead i'm all ears

www.halwasiya.uni.cc
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bullet Posted: 16/Jul/2006 at 12:36pm
the idea is not learning risk management but actually goin out to take it you know it is so very nice to play stocks in a agme coz u can start it all over again but when it comes to real stocks u will nver play it the same way for example if some one were to play a game he would not buy infy coz he might think that price is 2 high he will buy something lesser priced at prob below rs 100 so perceptions change depending which you you are actually looking at it from. and MBA's ya they add great value to society but by working for others who are prob more smarter since they give 30 lacs and make 1 cr from the same guy - both are happy win win situation, by the way are you an mba !!!
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