Number of Charterholders who are also CPAs

CFA General
#41

To add another anecdote, I have an MBA and a CFA charter, and am about to take my 3rd CPA exam.

It’s a bit of a non-traditional route. I started the CFA program when I was 22. I studied finance in college, but felt like I didn’t know enough to really know what I was doing in the real world. The CFA exam let me study those topics with a lot more rigor and structure than I could do on my own. Even better, it was cheap. I got my charter I was 26.

By that time, I realized sell-side research was not what it cracked up to be, so I went back for an MBA, then switched over to in-house M&A. I plan to be an executive and work my way up the corporate finance track.

I’m now studying for the CPA exam for two reasons. First, a thorough understanding of accounting is essential in what I do. I find that knowing how the sausage gets made in financial statements makes me a better analyst. Second, I plan to be a CFO someday. I think many firms will find an analyst background with M&A experience an appealing candidate for CFO, and in some cases better than the more common treasury/controller background. Prior experience is all about scarcity value. I figure, though, the lack of a CPA could be a weakness if I’m competing against the traditional beancounters, so I might as well get it now, when I have the time and energy.

I’ve never regretted any of the studying I’ve done. Even if I don’t end up in portfolio management, I have nothing but good things to say about the CFA. Studying all those hours gave me the knowledge and confidence I need to think critically about valuation and challenge people at work if I don’t think what they say makes sense.

Over the years, I’ve seen many of my friends and classmates stall out in their careers. My career has not yet, and I attribute part of that to the persistent studying I’ve done, outside of work, over the last decade. I don’t even consider it to have been a sacrifice. I have a wonderful wife, good friends, and a decent social life.

I know a lot of people here always say “you’d be much better off networking for 900 hours than taking the CFA exams.” Maybe so. But you know what? Go do both. It’ll pay off.

#42

i don’t know about networkng, but I generally agree that most people who think that CFA is a magic ticket to riches and fame should invest 900 hours into their career instead.

You, however, sound like an exception.

#43

I went MBA-Chicago-Finance, CPA, EA(tax), CFP, now CFA as continuing ed. I run a CPA firm doing business valuation and wealth management. CFA is a huge investment in time, but I think the curriculum is good knowledge to have, save for the Ethics (overkill).

#44

EA and CFP? Not trying to be an a-hole, but WHY??? If you run a BV firm, neither has anything to do with what you do. CFA is more relevant than anything - even your MBA. I’m a Chicagoan and everybody and their sister went to GSB (now Booth - including myself) - so why would you go that route?

You’ll learn a ton with CFA that will help with your firm - especially at level 2. Congrats at running your own BV firm - very impressive.

#45

how are you not a billionaire yet

#46

The reason is tax, BV, and wealth management all tie together. E.g., the BV clients I have, often sell their business and want financial planning advice and succession planning, especially wrt how to minimize taxes, so the tax (EA) and CFP are closely tied together, and often lead to follow-on business from BV clients, and v.v., tax clients often lead to BV and FP services. So it’s better for me to answer those questions, than refer them to another CPA/CFP. My hope is one day to be good enough at Deriv’s to run a portfolio for WM clients, we’ll see how it goes, but I love Deriv’s and have a quant background in Engineering, but it’s a long road.

#47

Stick with the CFA. I’m in a similar field. Unlike you (sadly for me) I work for a firm, and take care of the M&A then pass on the liquid funds to CFP’s who run portfolios directed by our CFA PM’s.

The EA is, as you know, solely for tax people whereas the CFP is for FA’s (sales). I guess the EA would work as a proxy for the CPA if you have the CFP and CFA.

Congrats on having your own thing. I’m hella jealous. Working for others sucks.

#48

I think what Charterguy means is that with CFA charter and networking, one will be paid off in the long-run. Of course one cannot be a charterholder without four years of experience. But if one already works in the finance industry, it is better getting the charter than not.

#49

In your current job, i.e. business valuation/private equity, do you use a lot what you have studied in CFA, CPA and MBA? Are those designations requirement to do what you are doing?

#50

I’m throwing the challenge flag on this one.

First, it seems like you have a Engineering undergrad. I’m guessing that afterwards you went to Chicago Booth. But most people don’t go to Top-3 MBA’s to be EA’s or CPA’s. They go to be CEO’s and CFO’s. (Do they offer enough accounting courses at an MBA to be eligible for the CPA exam?

Second, why EA and CPA? If you’re a CPA, EA is irrelevant. That’s like getting the CFA Charter, then pursuing the AAMS designation. Doesn’t make much sense. (And why an EA after such a highly-regarded MBA?)

Third, it seems you do tax work AND business valuation AND investments. That’s a pretty high bar. You certainly won’t have time to do derivatives for HNW clients, because you’ll be stuck on the derivatives desk all day, and won’t have time to do the other stuff.

I agree with you that there’s a synergistic opportunity by doing all of the above, but in reality, you’ll have to be a pretty large firm to do all that. And when you have to confer with multiple partners, you lose some of those synergies.

#51

To your challenge flag… I did MSEE-VaTech/MBA-ChicagoGSB, then Silicon Valley for ten years in Marketing roles, because that’s where the best opportunities were for an MBA with a tech background. After ten years, decided enough technical marketing for me, and having an interest in finance, chose business valuation as a way to stay engaged with tech world and do finance related work, so I picked up the CPA (needed 12 more acctg hrs + biz law) and the ABV/ASA (biz-val designations), worked for a small CPA firm to get the license, then started my own valuation/CPA firm and built a network of tech clients in the Valley. I did the EA to build more indepth knowledge of tax (not as a follow-on to a Chicago MBA!), because everyone I advise has a tax question. The CFA would be gravy, and I look at it as continuing education at this point. It would help in marketing IRC409a/ASC-820 biz-val services to VC’s because a lot of them have the CFA. Maybe deriv’s down the road if I can build a investment porfolio for clients. We’ll see.

#52

OK. Makes a little more sense now. (I’m still not sure why EA after CPA, but OK.)

If you have ASA, CFP, and CPA, then IMHO, you’re set to to valuation, accounting, tax, and investments. No need to do CFA, unless it’s just for personal edification. There won’t be any “real” benefit to it, since you’re already “legally” qualified to do all of the above.

Very lofty goals, and a good plan. But I really think that if you try to do tax, valuation, and investments (including derivatives), you’ll find that there aren’t enough hours in the day. It might be possible if you cut out the derivatives part, because that will probably take up your whole day from 9:00 to 3:30 (or whenever the exchange is open).

#53

Tough to pick apart each designation/degree, but each add value. I’d say the CFA adds the most value, with the MBA second and the CPA a distant third. I use them all and am glad I completed all - no regrets on any of them. As far as best bang for the buck - I would not have done the MBA. When I went to UC we didn’t have “Booth” it was GSB and I had to retrofit my wardrobe (Chicago people will get this - we’re pretty lame about wearing UC gear). CFA taught me the most about modeling (level 2), which has helped me the most at the core of my job. MBA has helped me with various intangibles (quality managment, marketing - qualitative concepts that drive businesses). The CPA has helped me communicate better with CFO’s who are mostly CPA’s and speak in the language of contribution margin, etc. In terms of difficulty - entrance to the MBA was tough, but the degree itself wasn’t tough. The CPA exams weren’t difficult. CFA was (for me) hands down the most difficult. Not even close.

#54

Whatever works for you in your career, i mean, most people have more than one careers in their lifetime so it is reasonable to acquire different skills along the way.

I think there are a lot of CFA charterholders probably who have other designations because these are the people who enjoy studying and gaining their credentials this way, rather than being a complete entrepreneur and do not go to school to prove themselves. Those are two distinctly different perspectives, and it’s hard to say which ones are more successful in finance.

#55

Reminds me of my first employer who owns this small company with 35 employees. He is a very good sales man and entrepreneur. I think he went to University to study what his company makes and sells. He is very knowledgable about the industry; he is passionate about what he is doing and he is very good at selling the products. But he is bad at managing people. Employees’ satisfaction is low and the staff turnover ratio is pretty high during the past few years both on the production side and the adminstration side.

If he went to a MBA school, probaby he would become a better manager. If he ever cares about how employees think and feel. But of course, he can just focus on expanding the company and making more money. Why cares about the rest right? There is certainly no need for him to go for MBA.

My point is just that…knowledge chages the way how ppl think and behave…

#56

hmm… i disagree.

I think it’s about the personality.

If he realizes he has management skills problems and willing to go to school to improve, he mustn’t be that bad, and he doesn’t need to do a MBA to learn ho to treat his employees, he can read a self-help book from a bookstore for 1% of the tuition fee of a MBA.

My point is, if he is arrogant and doesn’t respect his employees, even if he goes to MBA i don’t think his behaviours going to change, he will choose to learn what he wants to learn.

#57

Wow. That must be one expensive self-help book.

#58

lol. I was thinking the same thing. Who buys 1000 dollar book? :-/

#59

Correct. In fact I have met people who graduated from elite UK schools (Oxbridge, LSE etc) and turned into total d-bag (looking down on colleagues, throwing in name of their alma mater during conversations for no reason). Some people just can’t handle it, too much inferiority complex demonstrates itself as superiority complex and they seek validation of their achievements by highlighting others’ weaknesses/failures. Only if these monkeys knew AF’s ranking system, they’d have sawed off the entire package.

#60

Especially for MBAs, no offense to them, but a lot of them who can afford to go to expensive schools in the first place aren’t necessarily going for the education. i highly doubt they are there to really “improve on their management and interpersonal skills”… they just want those letters behind their names and the connection.

Same as CFAs, if you say that finance professionals take the CFA exams to learn better ethical procedures in hope to become better supervisors in research firms… i’d say you are pretty naive.