To Mba or Not to Mba
To Mba or Not to Mba
To MBA or Not to MBA?
Warren Buffett quoted that his favorite holding period is “forever.” Being the success that he is, any advice that he gives on investment is something worth considering. One decision on which that idea is applicable is in obtaining an MBA degree. As mentioned in the article, an MBA degree is an investment in your human capital. It is an investment that you can hold on forever. If Mr. Buffett is right, investing in an MBA degree may well be a good investment decision.
Ignoring all the intangibles in deciding whether to get an MBA degree, the article attempts to weigh its benefits and costs. Based on the proposed calculation, the article concluded that the benefits definitely outweigh the costs. The increase in salary, which is assumed to be thrice the tuition, is more than the opportunity cost on top of the direct cost. Even with all the assumptions made, it would be quite difficult to contest the authors claim.
In reality, there are far greater sacrifices to be made in order to go to graduate school. Expense will always be the number one factor when you have limited work experience and no other means of financial support. Given that constraint, one may opt to consider taking up MBA while working. This solves the financial factor but opens up the problem of juggling work and academics. Its good if you can balance the two, but most often than not, one or both will suffer. Your performance in work might decline and the time it takes for you to finish MBA may be prolonged. Time and fatigue will always be there to challenge you.
Similarly, the author could have been quite modest in analyzing