Should You Go for an MBA?

Last month I took a look at a question with some relevance to me personally: should I buy a new car? In a similar vein, this week I’d like to take a look at a question that a lot of my peers are currently facing, and one that I faced myself a few years ago. That is, I’d like to take a look at whether going back to school to get an MBA is worth it or not.

This is an example of a cost-benefit analysis. Cost-benefit analyses can aid our decision-making in a lot of situations. They can be used to figure out:

  • which R&D project a company should devote resources to
  • what price to buy a factory for
  • whether you should make an investment in your own education

The basic idea behind a cost-benefit analysis to see if an MBA is worth it is 1) measure the total costs of getting an MBA, 2) define a baseline against which we will measure the “MBA bump”, 3) measure how much we can beat this baseline by, by getting an MBA, and 4) somehow account for the timing of these costs and benefits.

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Financial Articles I’m Reading This Week – 12 July 2019

Lots of different topics this week– investing, Mueller, AOC, minimum wage law. If you have to pick one, read the AOC interview at New Yorker.

Financial Articles I’m Reading This Week – 5 July 2019

Really great article from Barron’s this week on an upcoming 401(k) rule change. My take: this change is designed to help insurance salesmen at the expense of retirement savers. Happy Fourth of July!

Financial Mad Libs: How To Recognize and Ignore Them

The online media ecosystem is filled with all kinds of financial news. Quarterly earnings reports, Fed watching, political commentary, early retirement planning, etc. Much of this content is time-wasting at best, and actively harmful to your financial future at worst. But one type of online article that is particularly irksome to me is the Financial Mad Lib. Financial mad libs are automated content (written at least partly by a machine) that use publicly accessible information to stitch together a simple story about a company or economy.

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Financial Articles I’m Reading This Week – 28 June 2019

Financial Articles I’m Reading This Week – 21 June 2019

Two of my favorite investors chat this week! Great stuff. Also an opposing take on my support of stock buybacks.

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Is The New Healthcare Rule A Sly Stimulus Program?

Last week, President Trump announced a change to federal healthcare rules which will affect employers that offer Health Reimbursement Accounts (HRAs). HRAs are vehicles which employers fund with tax-free money for an employee to use to purchase healthcare. Before this recent rule change, HRAs were not allowed to be used to purchase health insurance on the individual market. Starting in 2020, employers will be allowed to fund HRAs instead of offering group insurance policies to their employees.

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Financial Articles I’m Reading This Week – 14 June 2019

Financial Articles I’m Reading This Week – 7 June 2019

Continuing a streak of going heavy on off-topic articles. But… DINOSAURS!!

  • Make School Hard Again. Reason. HT Tyler Cowen.
  • The Day the Dinosaurs Died. New Yorker. “It’s like finding the Holy Grail clutched in the bony fingers of Jimmy Hoffa, sitting on top of the Lost Ark.”
  • Josh Brown: The power of compounding can help you double your money, again and again. CNBC & Ritholz Wealth Management.
  • What a War With Iran Would Look Like. Foreign Affairs. “Even if neither side wants to fight, miscalculation, missed signals, and the logic of escalation could conspire to turn even a minor clash into a regional conflagration.” I’ll add an extra quote, not included in this article, from Eisenhower: “Preventive war was an invention of Hitler. Frankly, I would not even listen to anyone seriously that came and talked about such a thing.”
  • Maybe Big Businesses Aren’t So Bad At Innovation. Futurity.org. “The idea that large firms can buy small firms to replace their own R&D is just disastrous. If we have to start rebuilding the R&D engine from scratch, it will be impossible,” Knott says. “The second is that large firms shouldn’t try to operate like small firms to become more productive—they already are more productive.”