Barbarian Capital's Academia Drive-By Shooting

One of my fave new bloggers, Barbarian Capital, addresses a very timely issue amidst our current (and seemingly everlasting) economic uncertainty – the unwarranted deference accorded the Academics.

Writing at the Davian Letter, the Barbarian lays out 4 reasons why this blind faith is dangerous, here’s one of them:

 Lack of real-world experience: most academics are what The Governator once called “people who only sign checks on the back” They’ve never had to make payroll or rent. They’ve never made a sales call. They’ve never fired someone with a newborn. Most, I think, do not realize that their “success” comes from the structured, cuddly world of academia where the rules and relationships are not only clear, but also predictable. Those of us operating in the real world do not have that luxury, and yet, somehow the “distinguished John Q. Public professor of Economics” gets more airtime, more respect and more job security than the guy down the street trying to run a business. Makes no sense whatsoever.

Actually, often our “acclaimed” economists are business disasters: look at the imploded housing market ETFs from Shiller, or the Nobel winners at LTCM. Only academics can come up with theories based on a world with no taxes, or on efficient markets everywhere, or run a super-leveraged fund based on everything going right at all times. The reason why such absurdities exist is because there is no real clash of ideas in the Ivory Tower: they are all in the same boat, and pad each other on the back. For us, having the wrong idea hurts only the way a short squeeze or a big drop on volume can hurt.

Get on over to read the rest…


Why Are Academics Dangerous (Davian Letter)

Tags: , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. buy shrooms online commented on Sep 14

    … [Trackback]

    […] Find More here to that Topic: […]

  2. w88 commented on Sep 20

    … [Trackback]

    […] Info on that Topic: […]

  3. immediate edge review 2020 commented on Sep 22

    … [Trackback]

    […] Find More on that Topic: […]

  4. pinewswire commented on Sep 22

    … [Trackback]

    […] Read More Info here to that Topic: […]

  5. 트리플스톡 commented on Sep 23

    … [Trackback]

    […] Information on that Topic: […]

  6. blazing trader reviews commented on Sep 27

    … [Trackback]

    […] There you can find 37090 additional Information on that Topic: […]

  7. 토토 commented on Oct 18

    … [Trackback]

    […] Read More here on that Topic: […]

  8. 토토사이트 commented on Nov 01

    … [Trackback]

    […] Info on that Topic: […]

  9. replicas relojes commented on Nov 26

    … [Trackback]

    […] There you can find 16592 additional Info to that Topic: […]

  10. Functional testing as a service commented on Dec 09

    … [Trackback]

    […] Info on that Topic: […]

  11. commented on Jan 07

    … [Trackback]

    […] There you will find 63702 more Information to that Topic: […]

  12. 悅刻 commented on Jan 25

    … [Trackback]

    […] Find More on to that Topic: […]