Tags: MBA | Schools | Booked | Solid

Time to Buy? MBA Schools Booked Solid

Friday, 01 Oct 2010 12:21 PM

Remember the global “war for talent” corporations were fighting just a few years ago?
 
The door to upper management just slammed shut: Harvard just reported the most applicants ever for its MBA program.

That should be a great contrarian “buy” signal for investors.

In fact, the 476 U.S. MBA programs reportedly received 200,000 completed applications as of late June, with the strongest of these receiving upwards of 10,000.

It’s a pretty predictable trend: First, companies fire the rank-and-file in droves to keep shareholders happy.

Then, as the slowdown gains traction, middle-management positions are thinned to the point where business break down. Productivity gains slow.

Now, MBA school applications show that hiring in the upper ranks has come to a virtual halt.

You can debate about exactly what to buy all day, but when top MBA programs have their pick of hungry candidates, that’s a great point in the business cycle to buy — if , like Warren Buffett, you are bull on an eventual recovery.

There’s more: The experience level of B-school applicants is steadily sinking lower, too.

The Wall Street Journal reports that while the majority of MBA students in the United States still have at least five years of work experience under their belts, more applicants are considering business schools earlier in their careers — in some cases, without any work experience at all.

According to the Graduate Management Admission Council, the fastest-growing group among those who take the Graduate Management Admission Test are those under 24 years of age.

From 2004 to 2009, this group grew an average of 24 percent a year. In 2010, roughly 40 percent of applicants to full-time MBA programs had less than three years of work experience, the council says.

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Remember the global war for talent corporations were fighting just a few years ago? The door to upper management just slammed shut: Harvard just reported the most applicants ever for its MBA program. That should be a great contrarian buy signal for investors. In...
MBA,Schools,Booked,Solid
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2010-21-01
Friday, 01 Oct 2010 12:21 PM
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