Good description Buffett. Another example is the recent widely published views of some leading US academics claiming oil will be back to $20. Their theories are based on the economic cycle and drop in US demand and are probably backed by complex and respectable models, but they have no consideration for the reality of the world - i.e. geo-politics, peak oil, china, india growth, Arab attitudes, cost of new exploration, etc.
Far better to learn from people who are actual successes, rather than salaried, cloistered professors. They derive their income from one secure source and love complex theories. They are paid for publishing new and modified works, and for eductating students to conform to the system. They will tend to be non risk takers.
I recommend watching the Rodney Dangerfield movie "Back to School" for a laugh and parody on real life regarding the economics teacher.
Taking no risks and living from a salary will feel comfortable and safe, but the successful tend to take managed and calculated risks to build their investments and cashflow over time. The aim is for your passive cashflows to exceed your living expenses, and from that point on you're a free man.
