Educating yourself Vs becoming a commodity
Will going to b-school kill the very things that could make you successful outside of the paternalism of a corporation/big bank?
A lot of discussions on WSO are about MBA, MSF & MFE programmes as well as the value of undergraduate education... I thought I'd share this short clip... Are we doing it wrong?
I see benefit in the branding and network of top schools, but my plans are to eventually run my own shop within the next 5-10 years, on my own terms and subject to my lifestyle choices... not to be a cog in some large corporation/bank. I think many funds/firms in my sector are not doing it right and want to take an alternative approach.
Do you think that one's edge in this business (finance/investments/advisory) comes from factors outside of formal schooling?
See, I think it is important to be engaged and entrepreneurial, but most people are not either of these. How do you teach a personality trait? Maybe a more German view of education where people take different tracks at a certain point in their education.
And yes, the drugging of children is horrible, but I have to say, I find myself to have attention issues that I never had as a younger kid. So much stimulus that it can be overcoming. As I type this I see the TV in front of me, my Iphone buzzing, the video playing and myself typing. That is normal or low key IMO.
The German system has one huge advantage: Only high aptitude students go to college, BUT lower aptitude students aren't stuck, because they go to technical schools so as to make a good living (plus, if entrepreneurial, skilled tradesmen can make good money, e.g. plumbers making six figures) Then again, the outcomes are basically the same as in the US of A.
To answer your question: yes, I believe success in the industries you refer to is more heavily based on factors outside education. Specifically, one's own family fortunes may have a greater effect.
However, jobs in finance aren't this competitive for no reason. If these jobs were a bad economic decision when considering lifestyle, intelligent people wouldn't take them, especially after spending years working in rigorous university programs (M7). The exit opportunities, skills you gain on the job (people management and discipline), money you make, and perhaps most important, the personal network you develop are all very well worth the time spent.
There's a thought I had recently while beginning work on a paper: things are the way they are for a reason. Economies seek equilibrium, and in this case the labor market in finance will settle with highly qualified candidates at a higher price (for employers) but with fewer hires due to the scarcity of said highly skilled candidates.
This is an economic optimization that has occurred due to the profit potential in this field. If skipping B-school and starting whatever business one desires had better initial pay, security, guaranteed prestige, networking opportunities and comparably low risk factor, I'm pretty sure people would skip the formalities altogether and do whatever they wanted.
But in an economic sense, these are some of the best jobs available. High pay, good networking opportunities, skills development and low risk (again, relative to starting one's own business).
Long story short: jobs in finance are great insurance policies, so everyone wants them (and few will "qualify").
I think a huge problem is that we have become so desensitized to all these distractions that we have really lost the ability to think deeply about key issues. I am debating throwing out my smartphone and going back to a flip phone, and I only use my laptop when necessary. As a student, technology is almost always a distraction (e-mail, Facebook, etc. etc.) that doesn't have any real value (aside from being convenient and easy). I know for a fact I have much more fun actually being physically with other people and working together, rather than being on Facebook.
As Cal Newport says, (http://calnewport.com/blog/) we are losing the ability to truly think. We grab for the easy answer because there are "better" things to do. Convenience and easiness are not ultimately better, and can be very costly, especially for people who need to do a lot of thinking about important problems and topics (students, hedge fund managers, scientists, etc. etc.) Being hyper-connected is not always good (and not always bad), we just need to be much more careful about how we are connected and where we devote our attention.
OK this subject has been flogged like a dead hooker but its always fun flogging a hooker:
Working for a corporation is modern day slavery.
Define slavery? (source: http://www.thefreedictionary.com/slavery)
Relinquis as far as your question. I believe that formal schooling ingrains the slaving mentality and conforms bright minds. I hope you open your shop and become a master of your own destiny.
-- NO GUTS NO GLORY
Great post, amazing video. +1 SB for you.
video was very interesting and informative, thanks for the link
I am currently a bschool student and my impression is this: if you are a career-switcher trying to get into finance (especially IB), it is a must. This holds true even more if you are over the age of 24-25. If you are already in finance and doing well, save $150,000 and network your way in to your next job.
For what it's worth, almost none of the former IB analysts in my class are going back to be an IB associate. They are either recruiting for PE/Hedge Funds or going on a different tangent and starting wind-powered universities that purify water in East Kashmir.
Silly video - people dont generally have the interest/will to pursue new passions. This is the dichotomy between the parents who let their kids do whatever they want and Amy Chua. She reasons her kids will learn to appreciate things, like playing violin for example, even though they may not be good at it to begin with - hence the need to practice and work hard. I feel the same with most academic things - youre not gonna learn you are interested in something unless youve got some level of exposure. I wouldnt have nearly the level of appreciation of things if I hadnt been exposed to a broad breadth of materials, academically and otherwise.
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