Too hard to tell, and remember that the post-crisis world is different from the pre-crisis world. In figuring out how much the CFA charter helps, you have to try to separate out how much of the “uselessness” that people argue has to do with the fact that the industry is having a difficult time and how much has to do with the value of the charter. My guess is that the charter has value, but that things are so tough in the industry that it doesn’t have nearly the value that it used to. However, should things ever get better, the charter should gain value again. As for switching roles in the industry, that’s also hard to say, because it depends on what your current role is. I can say for myself that having the charter has opened the door to conversations that would not have been possible without it. My situation as someone who came in from development policy and economics is different than many others (say from an IT background). For me, the CFA charter reassures people that I do good macro and emerging markets analysis *and* I know my finance theory/mathematics. Before passing L1, people asked me “what do you know about finance.” After passing L1, no one ever asked me that question again. After passing L2, I turned around an interview and got offered a job specifically by pointing out I’d passed L2. Unfortunately, that offer came from Lehman Brothers, so that outcome sucked beans. But for me, I found that the charter was very useful for me to be able to have intelligent conversations about investing. It wasn’t enough, and I had to do a buttload of other readings to supplement it, but it definitely helped.
CFA should be about personal enrichment and not much else. everyone I know in finance, including myself got their start by who they knew not what they knew. networking and kissing the right asses > CFA 100% of the time.
^True dat. If you’re using the CFA only as leverage to get a job in finance, don’t do it. I know more people that got into IB & finance without the CFA than with. They usually pursue the CFA after they get the job. If you have a job that pays for the charter and you have reasonable confidence that you can pass it, then go for it. However, if you’re paying out of pocket and using it to get a job… you will be disappointed. It is a bonus to have it, but like others have said, it is not enough. I’d rank your chances in getting a in finance job like this: Connections > work experience > personality / looks > being the class hall monitor > CFA (Okay, maybe I’m being a bit harsh about the CFA… but I don’t think the hype carries you over enough with all things considered.) In terms of using the CFA as a barometer of competence at your job: CFA > work experience > all other designations > being a super cool janitor
What you guys are saying might be true for IB, PE, Hedge Fund type positions, but I don’t agree if you’re talking about ER or Asset Management. In those fields, having a CFA is expected for experienced hires, in a lot of cases. You still have to network, but the CFA makes your networking viable. Also, having a CFA can actually help you network, too. Member societies are filled with good connects. And I believe you can use your time in day-trading to fulfill the work experience requirement.
Wait a min, doesn’t the CFAI have a network in itself? Use the CFA to network as well, they have cfa meetings, etc. Similar to your university, at the university you go to the job fairs, interact with employers, chat/network with students, get to know people. Same thing with CFA, dive into it and talk to other candidates. I am doing it for self fulfillment and for career, best of both worlds. Plus I hear when you get to level 3 (the blue books) you start looking more attractive to the opposite sex.
Thanks again for all the input. My understanding of trading and technical analysis is very good. I def lack the fundamental knowledge, which the CFA curriculum will provide. I’m again leaning toward just doing it. My plan is to sign up for the NYSSA weekly review class, attend the once a week study groups, and network my butt off. On a side note, I was speaking to a friend that works at a firm. They have some programmers doing black box stuff. They have this one 24 year old Financial Engineering PhD (Chinese - not to sound racist) who is sitting for the L3 in June. He took L2 last year and studied for 1 week. His remarks after the test “It was not challenging enough”. He will be studying for a few days for L3. He’s on vacation traveling now. Mind you this individual does not drink any alcohol because it “will kill brain cells”. lol Dukedog
^ Damn, that dude is a beast. Seems like a complete tool, though. If I was that smart, I’d be humble about it and not advertise the fact that I only needed a week to study for L2.
He’s a total computer nerd. Intelligence doesn’t necessarily = $$$. I know several people that dropped out or barely made it through high school and are multi-millionaires. Work-ethic and persistence are most important imo.
Scrooge McBucks Wrote: ------------------------------------------------------- > If I was that smart, I’d be > humble about it and not advertise the fact that I > only needed a week to study for L2. really…? i’d make a rap video on you-tube about pwn’ing gamma and send it to mensa
lmao > > > really…? > > i’d make a rap video on you-tube about pwn’ing > gamma and send it to mensa
Dukedog, how helpful it will be depends hugley on what work you’ve been doing. What have you done to pay the bills for the past 10 or so years?
Plenty of people have career changes. Must be hard to do though in finance. I have seen people leave working in the restaurant industry and healthcare to work as financial advisors, but not financial analysts. I’m sure it can happen, it just seems like there is so many applicants that started a career in finance and are still trying to get that bigtime finance job, I am one of them.
Not saying you have to start in finance, just saying that different jobs outside of finance have varying relevance to each finance role. If you previously worked in sales, that is useful in many positions. If you were previously so kind of technologist or healthcare worker, that would be relevant in different ways. If you were previously a chef, not so much relevance.
I did prop trading at a small shop (made a living) and most recently was working at an energy conservation company doing biz development. I’m just looking for additional knowledge to help get my foot in the door. Thinking that passing at least L1 would say, at least I know ‘something’. I just took the 20 examples questions for the L1 on the CFA site for sh!ts and got 10 out of 20. I guess not too bad but not very representative of what I would actually get taking the test. My weakness is accounting, hated it in college, mostly because I had an old professor who didn’t teach anything nor did he care as he was old, tenured and on the verge of retirement.
^ You can grind through the accounting/financial statement analysis portion. There’s various concepts that you need to get down pat (accruals, inventory valuation, creating cash flow statements), but it’s pretty basic stuff IMO. It seems like you have you sights set on this. If I were you I’d go ahead and buy the Level 1 Study Notes (Schweser, Stalla or Elan), and spend a few weeks going through the curriculum at a 10,000 foot view. If if something you really feel like pursuing, then go ahead and sign up. If not, you’re out of pocket $100 - $200, no biggie.