Where are the real pre-MBA superstars?
I've been doing some research and seeing the massive student loans that MBA students graduate with. Looking over another WSO article: wallstreetoasis.***/forums/savings-before-mba
It appears people aren't going into the program as hotshot all-stars (not saying they don't have impressive resumes though). Which leads me to the question, why are so many of these people getting let in to a school based off of high GMAT or GPA, resume and some essays?
I'm recently 25 (with a graduate degree already from a top 10 - which arguably slowed my NW down) and worth 500k+ with no debt (self made and come from a humble beginning) and didn't even do banking (I imagine others have managed even more than me - from all sorts of field). If I do go the MBA route in the future it will be much higher net worth from today obviously as well at the time of matriculation. Does the world have so few people that attend their MBA that are actually true all star elites? I would argue if you had to assume debt to attend an elite MBA (more so for the finance folks than say a HR MBA i.e.) you're not the best and your post undergraduate experience wasn't properly utilized - didn't Trump always say that money is the scorecard after all? The MBA in my mind is supposed to give society the best and brightest minds and if they're accepting cohorts of individuals who can only save 25-100k in 3-5 years out of college how great were they really (compared to the general population that's amazing but I'm looking at the all stars)? To me that sounds like people who just got a job and saved portions here or there mostly due to high earnings... did no one actively go out and invest for big returns themselves, run their own companies, fund raise capital, get a patent and license it and start something great that succeeded? When I think of the M7 I would like to think every person would have accomplished something like that - not just worked for tier 1 company and performed well enough to get promoted and a few letters of recommendations. However, reading over savings and such really makes me question if an MBA offers value to all-stars or if we should just keep building our things without an MBA.
Maybe if everyone didn't have to spend hundreds of hours wasting their time studying for a lame GMAT that offers 0 value in life besides admittance into a graduate program and doing stupid stuff they don't have passoin for to put it on their resume and spent that time learning business structure from companies they started, reading tax code to understand tax optimization strategies etc. they could have more saved but I'm really not sure.
Which begs the question, where are the true all stars who have true feats under their belts at early ages? Let's face it, the majority of you folks on WSO went into the industry to make a LOT of money, so "show me the money".
Perhaps the MBA's attract many of the same type of people causing the group think that Renaissance Technology notes. Maybe they are right.
"I've always said Renaissance's secret is that it didn't hire MBAs," says Berlekamp, who blames the herdlike mentality among business school graduates for poor investor returns." --- linkedin.***/pulse/20141117150538-17004994-pure-alpha-story-of-renaissance-technologies
I'm really curious everyone's thought on the topic? I also acknowledge the MBA for the majority is a solid investment based on the statistics job reports/placements/raises post-MBA show, so that's not the argument. I'm just curious the type of people going. Maybe the real all-stars that attend are the ones getting to 8-9 figures (4% over 100mil , 19% over 20 mil, after 25 years from Harvard class of 1986) vs everyone else just getting 7 figures, or maybe the 9 figure folks just have trusts and inheritances. Hard to say! That's also Harvard, not the other 6 in the M7.
I know there are definitely all-stars out there crushing it, I'm just curious where you are! What type of high performers are the top MBA's getting? I imagine some normal distribution for what I've described above but it's just surprising to me.
So what do the best WSO folks have to say about this? What insights can I gather here?