A chance to vent...
by, 4th-September-2007 at 11:09 AM (8512 Views)
Ok, first up i've never blogged before and never thought i would... but hey.
One thing that constantly frustrates me is the lack of good financial education in Australia. Here we are in the middle of a boom (bears may differ lately) and yet the government is doing nothing to educate people on how to better their own economic position.
I study a Finance degree at an un-named South Australian Uni (theres only 3 of them) and some of the things we are taught is ridiculous.
In a course covering basic share market learning, we are taught high risk = high return. Nowhere in any contact is this explained that it is dependent on the companies etc etc. Allthough admitedly there is a small paragraph in the textbook about how risk does not ensure return (but how many people read the text?), the major 'lesson' i would of got out of it if i didnt know better was high risk = high return.
Another example is PE ratios. I've never used PE's massively in my investing which is a personal choice. But here they are saying high PE = good, Low PE = bad. And yet low PE co's tend to outperform high PE co's. I even quizzed the tutor about this asking them 'what about a company like PDN with a PE near 100?' and they seemed to be confused and didnt know that there were companies with PE's that high and i was just told the exact same thing high = good.
Personally i dont really care as i do external readings, investing etc, but all those people who take uni eduaction as gospel may struggle to find jobs. Or no wonder all the 'analysts' and some fund managers have no idea these days.
Its just a shame that i need the peice of paper to get the type of career i want, so i have to stick at it and tell them what they want to hear in exams. Only a couple more years ...
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