College Is No Place to Learn About Trend Following

Feedback in:

“Hello, Mr. Covel. I’ve been following your blog for about a year now and I want to thank you for the work you’ve done and opening my eyes. I’m currently a student in one of the business schools here in Sweden. I’ve acknowledged there seems to be a lot of bias towards fundamentals as that’s mainly what my course material covers. There have been few instances where technical analysis is discussed, but usually only brief followed by negative comments from the lecturer. I remember one session where Warren Buffet and the reasons for his success were discussed. The lecturer, being a pure fundamentalist praised him followed by some students who of course had read the books about him. I wanted to do a little experiment and raised my hand and asked “What about Ed Seykota?” The response I got was silence followed by empty facial expressions and I was asked to elaborate on who Mr. Seykota is. I explained what I knew from reading your book, but I believe the message never got through. I did another try by telling the story about the Turtles, but without success. In retrospect I find it kind of funny because it shows how it is in the academic world. You would think the message from Mr. Buffet about continuous learning would play out in his followers by exploring the technical approach as well, especially trend following. I still have great respect for Mr. Buffet, but no worshipping. I’m happy I found trend following through your website because otherwise I would probably be one of those previously described. Thank you!”

Thanks. Good luck!

  • Trader Joe

    One of the lessons I learned in business school was not to take professors too seriously (or as Mark Twain put it: “never let school interfere with your education”).

    Back in the 1970s, I was attending business school at night while working full-time during the day. I stumbled upon the book “Think and Grow Rich” by Napoleon Hill ( http://en.wikipedia.org/wiki/Napoleon_Hill ).

    I asked one of my professors about the book and the question I got asked was “does the author have a PhD?” There is no indication in the book that he had one, so the professor said the book wasn’t worth reading.

    I went ahead and read it anyway and it was probably the one book that has changed my life the most. I went from having a “can’t do” to a “can do” attitude, and this transformation has made all the difference in my life.

    BTW, I’ve seen reference to “Dr. Napoleon Hill” on the web, but I cannot find any information about where he went to school. But since his book stands on its own merits, I don’t care whether or not he has a PhD.

  • Martin

    Doesn’t it depend on what exactly one pursues in college? Financial Engineering or Financial Math Ph.D.s are the researchers/quants that Renaissance Technologies or Winton Capital look for, right?

    Michael, your thoughts on these programs/degrees? (ie. MFE, Financial Mathematics, etc)?

  • Dan K

    A college education was a nice trend in this country, but where should losses be stopped, when tuition is $50k/year, $100k/year? A Harvard MBA is the only degree worth the money.

  • C. Maye

    http://www.cnbc.com/id/42871647

    “Weiss Ratings based its score purely on statistics, and does not take into account qualitative factors such as political stability.”

    Just had a nice laugh.

  • Clint Stevens

    College teaches you skills that rich entrepreners will pay you for if you decide to be compensated by them in exchange for the hours of your life. They may even pay you enough to allow you to live a pretty good life. Those who go that route often say things like, “I love my job.” I’ve found that those who say that are almost always broke.

  • Clint Stevens

    Perk your ears up. When you hear that phrase, “I love my job.” Pay attention, you will notice it, they are almost always broke. I’ve never heard a rich guy say it, but I hear it from broke guys all the time.

  • AdamL

    I agree most investment theory taught at business schools around the world is next to useless (apart from an entertainment point of view).

    However, not all education is useless. All successful Traders require a degree of statistical and business understanding – to claim otherwise is ridiculous. Do you need a Phd? No! Do you need to be eager and willing to learn? Yes!

  • Patrick
  • C. Maye

    Patrick…amazing video thank you.

  • DGDye

    Patrick,

    This could be HUGE!! A world changer. No wonder Gates is involved.

    Thanks.

  • Patrick

    “Report: Nearly Half Of Detroiters Can’t Read”

    http://detroit.cbslocal.com/2011/05/04/report-nearly-half-of-detroiters-cant-read/

    I thought i read “don’t read”.. and it ends up they’re basically illiterate. Shocking!

  • JBZ

    Feel the same way as the person who wrote this to you Michael. Very greatful for the work that you have done and its a shame that this is exactly what happens in business schools all over the world.


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