Therefore, brethren, stand fast, and hold the traditions which ye have been taught, whether by word, or our epistle

No, I am not going to write about the bible. I felt like talking a bit about IESE’s strange traditions and customs that have developed over the years within the student community and are carried over from year to year. So if you ever come to visit us, go on exchange to Barcelona or join IESE as full-time MBA student, let me fill you in on the details.

BOW

BOW stands for Bar Of the Week and is a weekly event taking place every Thursday night. The BOW committee works relentlessly to find new and exciting Barcelona bars each week. On Thursday, usually around 11pm MBA students start arriving at the bar of the week where they get a special discount on drinks upon presenting their student card. Usually between 50 and 150 students can show up to this event and sometimes the occasional professor slips in. Nevertheless, the BOWs regularly take a toll which is impressively demonstrated by empty rows in the Friday morning sessions. This does create a bit of a problem since attendance is obligatory at IESE and a specific number of missed classes can be a reason for a “Fail”. So, you have to pick your BOWs wisely or be disciplined enough to leave the bars after an hour or two.

If you are a soon-to-be student looking for an apartment in Barcelona, here is an additional piece of information: 99% of the BOWs take place in Eixample. Check out my blog post on where to live if you need more info.

COW

The COW stands for Cow Of the Week and is a weekly event taking place after the last class session on Friday during which a “cow trophy” is handed over. The trophy and the exact process are usually organized by each section at the beginning of the MBA program. The COW event essentially consists of a student presenting a summary of the “most intelligent comments”, the “sharpest analyses” and whatever else caused classes to be interrupted by the laughter of 70 students.

At the end of the presentation a “winner” is chosen who receives the COW (see image above) and takes over the responsibility of recording potential COW comments throughout the next week as well as prepare the COW presentation for the following Friday. I had the questionable honor of presenting the COW twice during the first year and am also responsible for picking out this admittedly ugly stuffed cow trophy as I was the unfortunate first person to receive the comment of the week.

LOW

LOW stands for Lounge Of the Week and is a relatively new tradition that is held alive by second-year students. It is basically the same as a BOW, but takes place irregularly on Tuesday nights. Not too long ago, the IESE administration decided to clear most Tuesdays in the second year in order to provide a time window for the students to freely pursue any career-related activities. While many second-year students make use of this free time, some also take this as an opportunity to enjoy Barcelona on Tuesday night longer than usual. This is how the LOW was established and it has been quite successful thus far.

SPAM

Unlike the previous entries SPAM is not an abbreviation. It merely refers to spam, junk mail that annoys you and fills up your mailbox. At IESE it is a common practical joke to spam the whole school with embarrassing emails - with the small, but important distinction that the sender is never ever the author. Almost all of the fresh first-year students, exchange students and even “veteran” second-years have committed the ultimate sin and forgot to log off from a public university computer or leave their unlocked laptop unattended. It takes two minutes - and I am often surprised how creative people get within such short time frames - and a prankster will send out an embarrassing or annoying spam email from the unlocked mailbox to hundreds of accounts in the university community. This is childish, but usually it is funny as hell. My personal favorite spam mails are those that do not embarrass the forgetful person, but rather annoy him or her by creating even more spam. The last instance in this “category” I remember was a mail from an American exchange student who wrote that he had received a crate of several hundred iPhones from a friend at Apple for free. He proposed to sell them unlocked for $100.00 each to his fellow students. Apparently his mailbox was flooded at once since he had to send a follow-up email 10 minutes later clarifying that someone else had written the phony iPhone mail.

Dinners

Dinners play quite a big role in the social life of the IESE MBA experience. Dinners are organized on a frequent basis between smaller groups and larger groups. While small dinners usually involve students and sometimes professors spontaneously meeting at a restaurant or an apartment in the evening, the large dinners are thoroughly organized events. There is usually a section dinner (all students from one section) each term, one or two first-year dinners (all first-year students), one or two second-year dinners (all second-year students), a dinner where first- and second-year students mix and meet, team dinners (all students from a specific study group), exchange student dinners, ladies dinner (all female students from one section or class) and many more. Barcelona has fantastic restaurants and options are abundant.

 

Just to clarify: despite what the above might imply, IESE is by far not a party college! From my own experience while on exchange at another leading European business school, the descriptions of my fellow students who also went on exchange to one of the many other available exchange (business) schools, and based on the comments of exchange students who come to IESE, we truly work a LOT compared to other MBA programs! The IESE administration has a bit of a fixation on academics and the workload is absolutely intense. This is maybe the reason why students find outlets and make the most of the free time. In the end, it is up to each individual how to balance work and free time.

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Learning about alternative investments in London - Part 2

LSE AIC Flags

The second day of the conference did not start too well for me as I had to pull an all-nighter to finish a team project for my Venture Capital/Private Equity class. Since I did not want to go without any sleep, I closed my eyes for four hours and then headed over to the conference.

This was the second day of the private equity day of the conference and the LSE PE club had lined up some top speakers. Nevertheless, spirits were not higher than the day before. This makes sense if you take a look at some recent reports, such as “Get Ready for the Private Equity Shakeout” (pdf) by IESE’s Heinrich Liechtenstein and BCG’s Heino Meerkatt, in which the authors suggest that as many as 40% of global private equity firms might go out of business in the next couple years. Another report by publically listed private equity giant Candover explores the fact that the European PE transaction values have dropped by a whopping 59% compared to last year’s fourth quarter. I found the following sentence quite telling, given that Candover IS a large buy-out fund: “For the second time in the sample period and the first time since Q4 2007, no transactions were recorded at all in the largest value bracket, defined here as deals worth in excess of EUR 1.65bn.” One of the speakers at the LSE AIC summed up the overall sentiment quite well by telling his audience that “[...] right now it is about preserving value. If I return to my office after this speech and I find people being involved in sourcing transactions, I will fire them.”

Referring to my last post and my dresscode mishap, the following photo is a good example of how you should NOT dress at an alternative investments conference, when the dresscode is clearly stated as business standard.

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Learning about alternative investments in London

I have been back in Barcelona for more than a week now, IESE’s case and work load has hit me with all its wrath, but I decided to leave for London anyway to attend the 2-day Alternative Investments Conference of the London School of Economics Student Union. The first day was all about hedge funds, tomorrow will be about private equity. I am not sure if this was the right move, since I have to miss lots of classes at IESE (where absences are somewhat severely punished) as well as our local VCIC competition - a fantastic competition where student teams evaluate real start-ups from a venture capitalist’s perspective, and are subsequently judged by some of Europe’s top VCs on their performance.

However, as all MBAs learn schmoozing and networking is important and since I am interested in alternative investments, I decided to go - plus I had to pick up my CAIA charter (finally!) in London anyway. I have to say that LSE’s Private Equity Club really managed to draw a more knowledgeable crowd this year. I remember that last year top speakers were asked questions such as “What is the life of a consultant like?”, whereas participants this year seemed to have done their homework. I also met a lot of former fellow students from my exchange school LBS at the conference which was a pleasant surprise.

Moreover, I really liked the speakers and even got close to one of Germany’s economic heavyweights Josef Ackermann, the CEO of Deutsche Bank, who gave the second keynote speech. The first keynote was given by (in)famous Victor Haghani, one of the key figures of Long Term Capital Management (LTCM) - the hedge fund that almost brought down the financial system in 1998 when it collapsed. If you want to learn more about Victor and the extremely interesting story of LTCM, I recommend to you to read the book When Genius Failed: The Rise and Fall of Long-Term Capital Management.

I then attend some workshops focused on the topic of distressed strategies. I thought this might be the hot topic right now and the workshop was indeed oversubscribed. The first workshop was held by an executive VP of Sankaty Advisors, a debt focused hedge fund/affiliate of Bain Capital. I saw and liked the guy already last year, but he has gotten better. He pulled out some really insightful and entertaining slides, one of which showed that the value Citi alone has lost in the last year would be enough to purchase the equity - at current market prices - of all the remaining major investment banks. For those of you who are interested in getting into a fixed income fund, he mentioned a couple of points candidates should look out for when deciding to join a FI fund: a good fund should…

  • focus on credit selection,…
  • have solid experience in restructuring (apparently this means an unproportional number of lawyers),…
  • possess strong trading capabilities,…
  • have no redemptions,…
  • and be structured so that the LP’s money is safely locked in.

While this sounds perfect in theory, I doubt that most applicants will have the luxury of being this picky. And I wonder which funds have not had redemption requests yet…

The next workshop was run by an MD (in the alternative investments group) from a well-know investment bank that had just been purchased by an American banking giant. Once again, very entertaining and informative workshop, although I found some of his remarks controversial. For instance, he used the allegory “You can’t blame drug pushers for pushing drugs, if there are drug buyers” referring to banks as the drug pushers and to hedge funds, endowments, etc. as drug buyers. But some of his points were less controversial and still quite interesting: when asked about the Ponzi scheme set up by Bernard Madoff, he mentioned that the biggest Ponzi scheme ever designed could actually be most of the world’s governments with their respective pension schemes and welfare systems based on fiat money.

Unfortunately, I had to leave after this workshop and head out to do some actual work for IESE classes. I am curious to attend the second day of the conference focusing on private equity. I registered for the workshop stream “Optimising Portfolio Companies”, a decision that was partially triggered by the research done by one of my professors, Heinrich Liechtenstein, who has written a couple of great papers on this topic in cooperation with other IESE professors and BCG’s private equity practice.

The only thing I regret is not having enough space in my suit case when I moved again from Germany to Spain. It is EXTREMELY embarrassing attending a conference where 300 people are dressed in black two- or three-piece suits when you are the only one dressed in jeans and a jacket. I stood out, but it made the networking part a lot harder.

More to follow soon…gotta go prepare some more cases for an IESE team project.

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ieseblogs.com went live!!

I actually wanted to continue with the final part of my guide to easy-riding in Barcelona, but I have spent the last week working on my project ieseblogs.com and I am very happy and proud to announce that ieseblogs.com is finally live and working online. 

ieseblogs.com collects all possible blogs related to IESE Business School to give interested parties the possibility to sneak a peek inside the IESE world. Please tell people about this project, especially if they have a blog that is in some way related to IESE. Students, alumni, faculty and applicants are welcome to join.

Please leave me some feedback so I can improve the service. I am very curious to hear your opinion about this project.

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The ultimate IESE MBA guide to easy riding in Barcelona (Part 2/3)

This is the continuation of The ultimate IESE MBA guide to easy riding in Barcelona (Part 1)

Safety and security or how to survive your inevitable accident

Yes, riding a scooter or a moto is dangerous, especially if you do it in Barcelona. The traffic is bad, really bad! And people do not necessarily stick to the traffic rules. At times it feels like a real-life GTA experience (without shooting). So if you decide to join the easy-rider-club you should expect the unexpected and most importantly, invest into your safety gear. Your best friend will be a good helmet that suits you properly. Don’t cheap out on this item. You do not need a EUR 400.00 model, but be willing to spend more than EUR 100.00 for a good model. I am no friend of used helmets, since you never know if they were involved in an accident (which might render them useless in a second accident). Barcelona is hot, so many students go for open-face helmets, but even in small accidents your chin will not be protected. Thus, I really recommend to buy a full-face helmet and make sure that the ventilation works well. Second, you will need gloves, not the ones you buy at Zara, but real motorcycles gloves with reinforcement pads that protect your knuckles and wrist if you fall off. Finally, you should also buy a proper motorcycle vest - ideally with enclosed protective armour and fluorescent markings for increased visibility at night. You should also consider buying proper pants and wear real boots, not sandals. To be honest, I always wear a full-face helmet, gloves and a jacket, but only regular shoes and blue jeans. When I had an accident and decided to see whether my head or a BMW X5 is stronger, I received some bruises on my upper body (protected by my jacket), but deep bleeding cuts on my knee and underneath my ankles. In the end, this decision is up to you, but you should be aware of the potential consequences of wearing or not wearing the right gear. If you can read German or have a German friend with enough time on her hands, you can buy great protective wear from German two-wheels specialist Louis. Unfortunately, the online shop is only available in German. Shipping costs to Spain are EUR 14.95 and the quality and prices are excellent. Alternatively, most of the motorcycle and scooter stores as well as the major department stores offer protective clothing. If you intend to get pricey top-quality gear, you might want to wait for the SkiIESE trip to Andorra in March. The peculiarities of the local sales tax (0%) law allow for extraordinary bargains.

As you can see on the image to the left, it gets quite busy during rush hour. What most students do after a while, is to go in between cars or drive on the bus and taxi lane while traffic is moving. This increases your chance to get to IESE in time as well as the probability to get hit by a car. Most car drivers in Barcelona look in all directions at all times, but they also stop in impossible locations for no apparent reason and many people drive drunk at night (especially on the weekend nights). There were some serious accidents involving IESE students and most of those happened at night. Most of the times, it was the fault of other (drunk) drivers. It happened to very few students, but I believe that you should know about this very real risk.

The traffic signs and rules are the same worldwide. There are some local “deviations” which are not necessarily included in the official traffic rules. For instance, all motorcycle and scooter drivers use the designated cab and bus lanes. Another speciality is the time when people start driving at the red light. You do not wait until your light turns green. No, instead you stare at the pedestrian’s light. As soon as the pedestrian’s green phase switches to the red-blinking phase, the pedestrians will run like crazy to reach the safe sidewalk while cars, trucks, buses, scooters and motorcycles start the engines and drive off immediately - although the red light for cars is still on. Keep this in mind if you dare use Barcelona’s street as pedestrian.

Finally, I should also mention the issue of leaving your motorcycle outside. I have never locked my motorcycle and left it on the streets of Eixample for a year. It has not been stolen, but some drunk kids kicked off one of my mirrors once. There were some instances where scooters were scratched with keys and I know of one case where the seat was cut open with a knife. These incidences happened rarely and depend largely on your area. If you can, park your bike in a garage. If you cannot, buy at least a scary-looking lock.

In the next and final post in the series, I will finalize this guide with some insights about the driver’s license. Until then, you can train your scooter skills by playing the fun game Scooter Ace.

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The ultimate IESE MBA guide to easy riding in Barcelona (Part 1/3)

So how does your average IESE MBA get around Barcelona and travel between home and school?

By bicycle? Only daredevils will face the challenge of getting with a bike through Barcelona rush hour and commit to pedaling uphill to IESE every day.

By bus? It is the choice of transport for some since there are plenty available bus routes and the tickets are fairly cheap (EUR 1.50 for a single ride, if you buy more tickets at once or purchase a monthly ticket, it gets even cheaper). But, the bus ride can take a long time and the schedules are not too reliable (although still better than in the United States).

By metro? No! IESE (and for that matter ESADE as well) are both located in Pedralbes - an area which unfortunately does not host any metro stations. The closest station is Maria Cristina on Avinguda Diagonal. Getting of there requires a 25-35 minute walk uphill.

By cab? Only one of my fellow students chose this option. You need deep pockets if you ride by cab everyday. As you can see in the picture above, there is an abundance of cabs in Barcelona and the rates are what I consider acceptable compared to other cities. Still, I think this solution should only be used in emergencies - and it is not always fast as the cabs get stuck in traffic as well - despite designated cab lanes on the main roads.

By scooter or motorcycle? No we are talking! The majority of IESE students gets around via scooter (and some who have the proper license via motorcycles). It is really the only way of getting anywhere in the city within a relatively short time, it is an affordable means of transportation and you maintain your independence. But most importantly, riding two motorized wheels is a LOT of fun!

Buying, renting or importing your wheels

I imported my motorcycle from Germany, because the second-hand market in Germany is much more active and offers better value-for-money than in Spain. I had to pay a specialized firm close to EUR 500,- to ship my bike to Barcelona, but it was worth it since they also included a couple of heavy boxes containing my books and other things. Even with the added 500, I felt it was worth it. I would not do the same, if I had bought a scooter or came from a country, where prices lie above those in Spain. To get an idea about the prices you can expect, look at eBay Spain or some of the local specialized online markets.

Moreover, every year scooters are passed on from leaving students to the new incoming students. Some are good deals, some are bad ones. Try to look at the moto only and ignore “special offers” that include locks and helmets. Most of the times, the helmets are not worth their money and a decent lock is available for less than EUR 30.00. Alternatively, there are numerous offers from dealerships (Peugeot has a good deal for instance) which allow you to purchase brand new (low-end) models. If you are price-sensitive you should check out some of the Chinese brands that I have never seen before outside Spain. Most students drive Peugeot, Piaggio (Vespa) or Honda scooters.

You can also rent a scooter, just to see if you can handle riding a scooter. It also is a cool way to discover your new city Barcelona. A former IESE alum has started the scooter rental company Cooltra which has special relations with IESE. Other scooter rental companies include MondoRent or Barcelona Rent A Scooter. Cooltra allows clients to purchase the scooter for a discount after the rental period. While this might sound enticing, you should talk to IESE students on the discussion board, since not everyone was too pleased with the quality of the scooters.

One final pointer: most 2nd-year students leave in April/May. This is when you can get the best deals within the IESE community since sellers are abundant and buyers are non-existent, because 1st-year students already purchased their vehicle and the new students have not yet arrived. So if you buy early, you might get a sweet deal.

This post is getting quite long, so I will split it up in several parts. I will follow up and write some more about safety and security as well as the annoying issue of getting a new or keeping your old driver’s license.

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Living in Barcelona as an IESE student

If you get (or already are) accepted at IESE, you will be most likely faced with the problem of finding an apartment in Barcelona. If you are not Spanish, worse, if you are not Catalan, this poses somewhat of a problem. There are a couple of issues you should be aware of:

  • Do you want the luxury of living by yourself, but pay the higher price; or do you want to share costs with flatmates, which can be challenging if you pick the wrong flatmates? And how do you find flatmates in the first place?
  • Do you want to live close to IESE, near the beach, close to Barcelona nighlife, in a lively or quiet area, expensive or affordable area?
  • Do you want a furnished or unfurnished apartment? Unfurnished apartments are probably easier to get and more affordable, but you have the hassle of buying and putting up furniture.
  • Are planning to go on exchange? If so, what happens to your apartment/room: sublet it or move out and find a new place when you return to Barcelona?
  • And finally when will you get to Barcelona to find your apartment, how much time will you spend on the search, where will you live during the search?

Whether you want to live by yourself or live with flatmates is entirely up to you. I was lucky with my flatmates and lived with two IESE students, an American and a Spaniard. It is generally advisable to live with IESE students as they have the same schedule. I also recommed to anyone to live with a Spanish student, simply because you get to practice your Spanish skills and in case of any utility emergency, there is always someone in the house who can communicate properly with the “outside world”. Finding flatmates is relatively easy: as soon as you get accepted to IESE, you receive an access code to a discussion board where you can meet other incoming students and 2nd-year students.

If you decide to go for an unfurnished apartment you might be able to discover some hidden gems, but the trouble of furnishing an apartment yourself is not always worth it. Most students bought their furniture from the local IKEA in Hospitalet (the second one is located in Badalona). It is cheap and they offer a nice selection. The only drawback is you have to assemble every tiny piece. I personally do not believe that the time and effort is worth the potential savings in rent for unfurnished apartments, but others views this differently.

I am convinced that the most important issue, besides finding cool flatmates, is the area you want to live in. I created a small Google map outlining the relevant areas:

View Larger Map
Any Catalan reading this forgive my inexact district coordinates. The colored areas represent the districts I find to a certain extent ideal for IESE MBA students. If you click on the colored areas, you will see a description. My favourite area is the Western part of Eixample (blue area), because it is affordable, offers many nice apartments, shops, bars and clubs. I am currently trying to find something in Barceloneta (orange area), because I want to spend my last months closer to the beach. Barceloneta is pretty expensive and extremely far from IESE, but the outlook of waking up with the sound of the sea makes it all worthwile.

Finally, you should be aware that everybody in Barcelona is on vacation during July/August. So you should try to find a place in June since the IESE program already begins at the end of August at which point things can turn stressful. You can try to use the IESE discussion board to rent a room from 2nd-year students while you are looking for your own place. Another option is to stay at one of Barcelona’s many hotels. When I looked for my place, I lived at the very affordable Hotel Continental which offers free WiFi and free snacks and drinks 24/7.

I hope that I could give you a first overview and if you have any specific questions, leave me a comment or send me a message.

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New MBA links and my site is finally online

My nice provider moved me within less than 24 hours to a server that runs PHP5, so I can finally declare that I am online :) So please visit www.schollmeier.info and leave some feedback.

I continued updating my website and added some useful MBA-related links that helped me during the application period. You can find them on my links page. I also recommed to anyone to check out the specific school pages and of course the respective Wikipedia entries as they all offer valuable advice or information.

For instance, Wharton lets students have online student diaries (an old-fashioned name for blogs). London Business School has an official blog that is maintained by adcom and students. And then there are the countless student blogs, some of which are listed in Clear Admit’s Wiki, which was my personal favourite resource. All of this is useful when writing essays or getting first insights about schools and students. Hope it helps.

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Kick-off!!! …or not

Just finished uploading my files for schollmeier.info. On my local computer everything worked fine with the small exception that I did not produce any content for my images and links pages.

However, when I tested my site online, I realized the stupid server is running PHP4 and I tested locally on PHP5. This is a problem, especially since I use some advanced functions on my index.php (my first page). I called support and they will move me to a server that has a PHP5 installation…..but….it will take a while. So I guess I have to wait three more days until I am finally completely online.

In any case, I should get back to studying for my interview tomorrow instead of playing around with this website.

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Hello World!

After watching the blogosphere for years, I finally decided to start my own blog about my MBA experience, technology, entrepreneurship and alternative investments. Leave me some feedback, so I can improve this blog on-the-fly.

If you want to learn more about myself or contact me directly, please visit my main page schollmeier.info

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