Hey all, I’m curious whether or not going through the CFA process makes sense for someone wanting to start their own business rather than work for an I-bank or in proper finance. More specifically, I’m interested in starting a consultancy/research firm that would provide market info/research/analysis on a specific sector of China’s economy. I’ve lived in Beijing for 6 years, speak Mandarin and am working for an MNC now, but doing policy research and analysis rather than financial analysis. I don’t have a background in finance, so what I basically want is to be conversant in financial analysis to be able to analyze companies’ balance sheets, evaluate listed companies in the industry, write detailed industry reports (of which financial analysis would be one part) on this sector and hopefully sell them to investors/clients interested in this sector where I already have a lot of background and good connections. In other words, I’m interested in the CFA to give myself some background in finance and some credibility with potential clients who would buy my research. I’ve been studying Swisher notes for L1 exam for 2 months (still haven’t officially signed up), but am enjoying the material. Would taking the L1 exam equip me with some of these skills/credibility? Would I need to become a Charter member for the CFA designation to mean anything in the eyes of, say, a potential hedge fund or investment client? Do I simply need to learn the skills and not even bother with the test? Any other comments or advice about how feasible this sounds? Thanks.
The CFA program will certainly give you a good background and some historical context into financial analysis. And all else equal, it will add an extra piece of credibility for sure.
L1 is too basic, you need to pass L2 to gain deeper skills. L3 is based largely on portfolio management, so in terms of pure research and number crunching, it’s not as helpful.
But you also correct that you essentially need to have the charter to really gain credibility. Only people who have personally studied for the CFA exams will know what each level entails.
The only way you can just learn the CFA material and not bother to go for the charter is if you have sollid work experience already and a track record. If you don’t have these, then you have no real proof to convince people you are skilled
You need full CFA and work experience. Otherwise, people are not going to listen to you.
I could be wrong, but maybe your best shot would be to start a blog where you give out your analysis for free on your free time.
Yeah, just start writing. That’s what I did. It takes a while for people to notice, but it also gives you something to say when they ask “what do you do.”
However, don’t give away *all* your analysis for free. You should have research that you don’t give out, or else people will just decide that they’ll read your stuff rather than hire you and pay for it. You can drop hints about “work you’ve done for someone,” or “other research of ours/mine suggests that.” These things carry a lot more weight if they’re true… I don’t advocate lyinga about who you’ve done stuff for, but when you’re starting out, you don’t have to reveal how much they paid you for it, if anything.
Thanks for the replies. I had already planned on writing/blogging as a way to build a reputation after formally quitting my job and starting this company full time, but sounds like I should get started on that sooner than I’d planned. I’m going to go ahead with the CFA test as well, with an eye to take L1 in December 2012 and L2 in June 2013. Hopefully can launch the company next year and then go for L3 in June 2014.
Do not quit your job. Do not just pass the CFA exams.
Look up Shannon Cross who started Cross Research.