Question: Advice on business school?
BUFFETT: Business schools not long ago used to teach a lot of nonsense about investing.
MUNGER: They’re improving.
BUFFETT: From a low base?
BUFFETT: Business schools teach one fad after another in finance. It’s hard to resist. Going against the “received wisdom” of your bosses and elders is dangerous. People need to know fundamentals, not modern portfolio theory or options value. Ray Kroc needed to know how to make and sell hamburgers, not options pricing. There is next to nothing in business textbooks about valuing businesses. But making it look hard makes the “high priests” of finance get rich.
MUNGER: Finance people want equations like Black-Scholes so they don’t have to think hard.
Source: Gongol notes from the 2012 Berkshire Hathaway shareholders’ meeting