It was surprising to see VVS Laxman in the commentary box today. The threshold to becoming a cricket commentator is getting higher and higher each year.
Once, commentators used to be non-cricketers mostly. Knowledgeable and fluent, yes. But non-cricketers. Recall the Doordarshan days.
Soon, they had to make way for the cricketers. Those who played the game at the top level, but fell short of legendary status. Now, only legends need apply.
Much like in the investing profession. Lakhs of aspirants appear for MBA entrance tests. Only the obscenely bright qualify. Two years later, the cream among them then chases the plum job in investing banking or equity research.
It’s a simple case of too many candidates competing for a limited number of seats. The required qualification soars way beyond what is truly needed for the job.
Do you really need to be a Sunil Gavaskar or Alan Border or Shane Warne or VVS Laxman to analyze an India-Australia test match? ESPN would certainly have you believe so. You see, it’s good for their brand.
Do you really need a 99 percentile score in CAT or the ability to do integral calculus in your sleep to pick stocks? The elite business schools, the stock brokers and mutual fund houses would certainly have you believe so. You see, it’s good for their brand.
As a retail investor, never let that snobbery affect you. You are plenty smart.
“Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” – Warren Buffett
I could not have said it better. All the engineers are wasting their talent entering Equity research and analysis and Quants for that matter to delve into price marking which is largely driven by psychology and economics. One just needs to be prudent and have a common sense approach to make money in the markets.
Thanks Peeyush! The psychology bit is especially important…