People will sometimes ask if you passed the exam on the first try. A few places will screen out anyone who didn’t pass all of them on the first try, but quite honestly, those are likely not the best places, because there are tons of reasons why people may fail an exam that have nothing to do with how good an analyst they are likely to be. It would be even more ironic if a value shop were this way, since value shops supposedly specialize in finding investmetns that are good despite the most obvious blemishes.
[this is a recurring theme of mine, which is how ridiculous it is for some investment places to claim that “security markets aren’t efficient; that is why we deserve to be paid so much to outperform,” and yet conclude that “your past compensation tells us what we need to know about you, because labor markets are efficient.” Markets may or may not be efficient - that’s up for debate - but if securities markets are inefficient, there is pretty much no way on God’s green earth that labor markets are efficient.]
More often, the question about passing the first time is more of a conversation point than a “check the box” feature. Lots of people fail L1 the first time because they underestimated the work required to pass the exam. And there is a certain amount of respect for people who dust themselves off and then give it the effort that is required, because it shows dedication and adaptability. So you spin it that way.
With L1, however, if you don’t know WHY you didn’t pass (not enough work, a particular section that you bombed, etc.), then that is not so good. The exam is tough because of the quantity of the material and keeping yourself alert for 6 hours, but the material itself isn’t super hard (bits and pieces are). For me, the accounting stuff was the trickiest, because there were all these random-sounding rules (to the untrained eye) that had to be applied in 90 seconds or less.
From my personal experience, less than 10% of employers ask you how many times you have attemtped the CFA exams - is it important? i’d say it’s more important to you than the employers.
I would give it a serious thought as to how much time you CAN commit to the CFA exam. I mean, you can’t just register and “wish” you have time to study and just “wing it” in June. it doesn’t work!
You have to be honest with yourself, how much you NEED this? If it’s not something you need, just move on! you have wasted some time and money, but you will lose MORE if you continue on a path you are not committed to.
EVERYONE has personal problems and obstacles and work obligations and everything else during the 3-4 years of studying… You aren’t alone. Only the ones who can keep on top of things will pass and make it at the end.
My advice would be to stay in your own industry or at least in your own field. It sounds to me like you’re just money hungry since all you mention is VC, PE, and ER…fields you have probably heard are lucrative and you feel it would be the easiest of transitions among others. Short of a close relative literally just giving you a job in this field, you have no shot…as mentioned there are Ivy league MBA’s with previous IB experience competing and getting rejected for these jobs. You said you’re an engineer? Use that background and move into something within engineering…brush up on your programming skills, work for a tech start up…don’t just try to break into finance because you think it will be easier…it won’t be, because everyone who is trying to break in is thinking like you (IT people and such) with the excuse that “I’m passionate about finance”…I’m glad you didn’t say that but you also haven’t mentioned “why finance?” Anyway, unless you can get over the fact that there is zero guarantee with CFA, commit the hours, and open yourself to more than just the highest paying finance jobs (VC, PE…which you will likely not get) then just don’t do CFA, you will be wasting your time.
She’s in Japan, the kind of typical asian country where credentials are highly sought (sorry for stereotypes if this bothers anyone!). If they ask about passing the CFA exams on the first try only 10% of the time over there, that should translate to a very low relevance in a western country. Sounds about right for both of you.
By the way, OP, Canada has one of the highest concentration of CFA candidates and charterholders after the USA, so bear that in mind.
I’ve heard a few times that Toronto has the most charterholders per capita. It’s so freakin’ cold 6 months a year that Canadians have nothing better to do than study.
Thanks Itera, but I was told passing all levels of the CFA will stand a chance or do an MBA from a prestige school. I agree I am not prepared again, one reason of that is the lack of commitment…and repeatedly, it is due to the chances of getting jobs in ER, M&A, VC, PE… it is like a faith you have for a religion…sorry I could not think of a better example.
Hi Itera, do you think according to your knowledge, an MBA from a good school would be the more appropriate way to achieve the career change or enhancement? Thanks
Thanks Ramos4rm for your advice. I do not deny that I want more money, I mean, it is one big reason why people want better paying jobs, but that is not my only reason. I am an engineer, working in maintenance/reliability (non IT), and it is a career that basically goes nowhere. My next level up is Maintenance Manager if I am lucky, but then, the incumbent has been doing this for 20 years till he can retire, so I started thinking is there something else I can do that I have interest in which will lead to a properous career…I came to realize that I also have a strong interest in business takeovers, mergers, and in my past employment (sadly, business is what matters not how good engineering is often times) I learned how entrepreneurs make their decisions, good and bad, so I started researching on career changes… I like learning how startups grow or failed, raise funds and more… I want, or dream or wish to be in VC, PE, M&A, or ER if I can…I believe in my ability in passing CFA I but again, commitment, devotion, life problems, the other half, and age…
I started learning and reading stuff on how to evaluate businesses, and M&A, such as UA and Continental, Target bought The Bay in Canada, Groupon, Loblaws bought Shoppers, Keystone oil pipeline project and more
I’m not Itera, but given your background, I’d say probably an MBA is a better way to go. But it’s going to need to be top school, not necessarily just a good school. You likely won’t qualify for the Charter based on your background so you’ll just have the exams behind you (not insignficant) but with the vast number of unemployed industry professionals you’re going to struggle to have an edge without connections.
The MBA provides connections. Network like crazy during the program, make good friends, and use them to gain a position. I don’t mean to be rude or dismissive, but that’s likely your only realistic shot.
I’m a Charterholder with nearly a decade of corporate finance background (as in industry corporate finance, not banking corporate finance) and I have zero percent chance at any ER, VC, IB or PE type jobs. I’ve just learned to accept it. You’re either in as a youngster, or you have a Harvard MBA where you met the MD of PE Advisory at some firm. It’s that kind of world.
Now the finance world is much bigger than the investment management, asset management, advisory type firms. Every corporation has a finance team of some sort. These jobs can pay very well and offer much better life balance. Is it taking a bit of a cop out? Perhaps. But here you’d stand a realistic chance, whereas on the otherside I think you could throw $150k at an MBA plus opportunity cost and still be on the outside looking in.
Not to say it’s easy to break into that side of the business either, especially with no experience and at a later age. But you could start at the bottom, you could find a spot, and work up.
Thanks for sharing your experience. I appreciate it very much. I need to re-evaluate what I want and have goals that are realistic and doable. I think an MBA will is the better way to go, although a long hard way. I certainly wish if I can have a mentor.
I read through all the advice you received, (some of which seems misguided to me)and hope it helps you make the right decision. However I was wondering maybe your prep methods may be the culprit?
MBA is not an alternative to the CFA neither is it the other way round. You decided to write the CFA L1 exam the second time for a reason- try to figure that out. With regards to job prospects there are several CFAs, MBAs, CFA+MBA’s, CFA+MBA+Phd’s who are now available on the job market. The point imho of getting any degree only makes sense when you sign up for it, after that you are on your own.
So my free advice is to understand what your reasoning was to sign up for a second attempt and then figure things out from there.
I second that. i dont’ think one should take MBA “because CFA is too hard and MBA is more realistic” - i mean, if you end up going into the same industry, i don’t see how you would want to invest so much time and money on something just because it’s easier or doable when perhaps from the beginning you should know it’s not a career for you.
If you want to go into high finance and you can’t pass CFA, i don’t think it’s for you, quite honestly, even with a MBA, you won’t go far.
If you want to go into management, on the other hand, then CFA isn’t for you and perhaps MBA is more for you.