Business Insider has a pretty good piece on the age old CFA vs. MBA decision.
"Here’s the break down (YE means years of experience):
"As you can see, people that are only CFA chart holders tend to make $27,000 more than people that only have a MBA, and $13,000 more than people that only have a MBA in Finance.
If you really want to kill it though, get both.
“The combination is phenomenal,” said von Stade. “It’s like a 1-2 punch.”
“A CFA certification is more niche. CFA chart holders [sic] are investment professionals, and the skills they pick up are super analytical. They tend to stay on Wall Street and head to a hedge fund, private equity firm, or bulge bracket bank.”
Um, yeah. Well, there can be no doubt that most CFA chart holders I know are all “on Wall Street” and mostly work at hedge funds, private equity firms or, uh, bulge bracket banks.
Clearly, while we CFA chart holders are “super analytical,” the author of this piece is not, and obviously is somebody that has no clue about our industry…pretty much whatsoever.
I work at PE fund making mid-50s having both the CFA and MBA. Although, it is exactly what I want to be doing, I believe I should look for different opprtunities to be compensated appropriately. Is the experience worth it or should I just start networking immediately?
^This is the new reality. You won’t get much wage increases staying where you are or elsewhere…unless you are doing something with substantial more responsibilities.
They seem to forget that adding the MBA to a CFA Chart will cost you $200,000 in direct costs and another 150,000 in lost wages over those two years. Assuming the differential between CFA only and CFA + MBA remains constant, it will take more than 20 years just to breakeven on the cost of the MBA.
Also, and this goes directly to Iteracom’s point that he has made oh so often, it’s difficult to lump together all MBA’s. An MBA from MIT who works for GS in NYC should not be compared with an MBA from Tiny Baptist University who works as an overnight shift supervisor for Albertson’s in northwest Oklahoma.
Granted, not all chart holders are created equal, either. But at least the curriculum and the level of rigor is universal for all.
If they want to really measure the differences, they need to do a series of longitudinal studies. I know a boatload of underemployed sociologists who could help out the author of the article.
I actually don’t think its market. I am just saying that I believe I am an anomaly and wanted to ask whether I should wait and obtain some more experience before looking around for other jobs or start looking immediately?
What exactly does an analyst/associate do at your firm? Are you basically a glorified accountant (not that there’s anything wrong with being an accountant), or do you contribute to the investment selection process. I realize you wouldn’t be the one deciding to take Dell private or exit a position, but do you conduct analyses that the decision makers rely upon?
You sound like a Republican politician talking about gays. “Are you gay? I mean…there’s nothing wrong with it…if that’s what you like…It’s just not a decision that I would make personally…and I probably wouldn’t like anybody who made that decision…in fact, I would probably hate them and legislate against them…but I’m not against it. God bless the USA!”
I am no “glorified accountant.” I am heavily involved in the investment selection process with the VP and Principals. I perform all of the typical analyses and work you would expect from an analyst/associate at any other fund when screening or underwriting deals.
