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To Study for the CFA or not ?
 

Excel_Diva's picture
O
(Chimp, 11
 
Points)
 on 5/31/12 at 12:00am
cfa.jpg

I'm currently employed in Ops and finishing up my Masters in Finance in the next 9 months. I'm looking to move to Equity Research once I've finished. Is it worth it to try to Finish level 1 of the CFA this December or is my time better spent concentrating on my current role and studies? I will finish the program in March of 2013, possibly allowing me to study for the June exam.

"you can turn off the sun but I'm still gunna shine" - Jason Mraz
Tags:
WSOusername's picture

I feel like the general

 
Points)
 on 5/30/12 at 2:54pm

I feel like the general opinion is that the CFA is more of a "get the foot in the door" than "rise through the ranks" typa thing. If you're doing your MSF most of the shit won't be new either. You'll also probably get a lot of ppl explaining how what it teaches isn't exactly applicable to on the job, etc.

Anyway, taking into account your personal position (trying to move from Ops to ER) and the fact that you're doing your MSF, I feel like it might be a good time because not only will the two complement each other in terms of material, but it can else give you that "foot in the door" boost. Just my $.02

GBS

Human's picture

Networking + Making Sample

PE
(King Kong, 1,891
 
Points)
 on 5/30/12 at 3:05pm

Networking + Making Sample Work + Keeping Your Day Job > CFA
You can sit for the test once you started working.

"I am the hero of the story. I don't need to be saved."

kingtut's picture

If your end goal is equity

AM
(Gorilla, 587
 
Points)
 on 5/30/12 at 3:06pm

If your end goal is equity research then I would definitely pursue the CFA. Your competition will almost assuredly be at some stage of the CFA. As above poster said, it will definitely help get your foot in the door and it shows that you have an elevated amount of interest in the field.

My advice: You should definitely take L1 at the bare minimum.

Ravenous's picture

It helps on the sell side On

HF
(King Kong, 1,347
 
Points)
 on 5/30/12 at 3:10pm

It helps on the sell side

On the buy side, you generally need one of three things:

1) CFA

2) Brand name degree

3) Ability to make money

If you only have 1 or 2, that might be enough to get your foot in the door and learn how to succeed with 3. If you already have 3, you don't need anything else, though that would be rare without direct experience.

Excel_Diva's picture

Thanks for all the input!!

O
(Chimp, 11
 
Points)
 on 5/30/12 at 3:21pm

Thanks for all the input!! Sounds like I should shoot for taking L1 this December. Anyone have a good estimate for the number of hours of studying to expect for good performance? I'm trying to judge if I can perform in my job, complete my coursework and study with the expectation of passing. I'd hate to throw away a few grad I could have spent elsewhere. Or if there are any suggestions for extra materials, Stalla, Kaplan?

"you can turn off the sun but I'm still gunna shine" - Jason Mraz

Human's picture

^^Stalla no longer exists.

PE
(King Kong, 1,891
 
Points)
 on 5/30/12 at 3:28pm

^^Stalla no longer exists. They got bought out by Schweser (Kaplan).

"I am the hero of the story. I don't need to be saved."

BCbanker's picture

The pass rates are in the

IB
(Gorilla, 633
 
Points)
 on 5/30/12 at 3:34pm

The pass rates are in the 30's. Compare that to the bar which is in the 80's. You should approach the test with this in mind, are you in the top third in school? At your job? Among your peers? It tends to be a good predictor of success.

Ravenous's picture

Not really comparable to the

HF
(King Kong, 1,347
 
Points)
 on 5/30/12 at 4:00pm

Not really comparable to the bar though. You study for the bar for three years in law school (I'm shocked it's only 80% -- what were the other 20% retards doing?). I agree the test is hard, but I don't think you can compare it directly to the bar. CFA is probably the hardest professional test around except for the actuarial tests.

Level 1 pass rates are low because people don't know what they are getting into. Level 2 and 3 are the real deal though. By the time you get to 3, there is no dead wood left, and most years the failure rate is still 50% or higher.

MD8's picture

CFA is not worth it when you

IB
(Baboon, 107
 
Points)
 on 5/30/12 at 4:22pm

CFA is not worth it when you can alternatively take a 2 year vacation and get an MBA.

BillyRay05's picture

Cannot count how many times I

ST
 
Points)
 on 5/30/12 at 4:22pm

Cannot count how many times I have seen this asked on a job board or in real life...

Will it help?
Maybe.

But here is how you get a job imo, ranked in order:
1a) Network
1b) Experience
2) Pedigree
3) Designations

I cannot tell you how many BO/MO heads at my place who are sitting for the CFA. They all have the same aspirations as you, and I can tell you right now that the vast majority will never land in ER. Why? Because they've spent soo much time prepping for a test, but neglecting a vital aspect of breaking into any FO role- networking. The test shows that you know your stuff and that youre interested, but why would I hire a ops guy when I can hire a IB monkey who can whip out models at the drop of a dime? Why? Bc I met up with the ops guy for a coffee and he seems intelligent and hungry.

So, yea, definitely consider taking the test next summer- but your goal for the next year should be to network your azz off for the next year. You will find it very difficult to do this once you're in the 'study matrix' of the CFA. So in summation, CFA is good but it is faaaar from a golden ticket.

"Sounds to me like you guys a couple of bookies."

Excel_Diva's picture

Thanks for the advice

O
(Chimp, 11
 
Points)
 on 5/30/12 at 5:02pm

Thanks for the advice BillyRay, I've been working on networking with some junior level people in ER at my firm. Hopefully I can gain more contacts within the next year as I finish my degree.

The end goal is an internal transfer. I recently applied and was selected to interview for a role in ER but wasn't allowed to continue since I've only been at the firm roughly 1 year. Yet another hurdle, but I'll find a way to make it work.

"you can turn off the sun but I'm still gunna shine" - Jason Mraz

jmayhem's picture

Whatever level of Schweser

O
 
Points)
 on 5/30/12 at 5:05pm

Whatever level of Schweser you get, make sure you get the Q-Bank.

I've been studying since mid-January, have done all the Q-Bank questions, all the Schweser Notes practice questions, all the CFA material questions and 3 practice exams and I'm scoring mid 70% on the practice exams, just to give you an idea of how much material there is to cover.

"The power of accurate observation is commonly called cynicism by those who have not got it." - George Bernard Shaw

Derivs's picture

My friends who have done MSFs

IB
(Baboon, 133
 
Points)
 on 5/30/12 at 7:20pm

My friends who have done MSFs have breezed through CFA level 1 with minimal study (less than a month of light review spread out and a week or two of heavy heavy review right before the exam). I would say your time expenditure for level 1 will be minimal if you have paid attention in class at all.

I have CFA level 1 under my belt. I can't speak to how it affects one's job search because I'm not looking to switch right now. Took it just for fun. A few weeks of Schweser and you should be good to go.

I will say that people who have passed CFA will give props for passing level 1, and mad props for passing levels 2 and 3.

I'm taking level 2 this weekend and it's the one time in my life where I think there is a non-negible probably that I fail an exam. Definitely should have started studying earlier. I got overconfident because of the positive experience I had with level 1.

Excel_Diva's picture

My friends who have done MSFs

O
(Chimp, 11
 
Points)
 on 5/30/12 at 9:31pm

My friends who have done MSFs have breezed through CFA level 1 with minimal study (less than a month of light review spread out and a week or two of heavy heavy review right before the exam). I would say your time expenditure for level 1 will be minimal if you have paid attention in class at all.
***
Thats reassuring, glad to know I might be 'killing two birds with one stone'

Good luck with level 2 hopefully it works out!

"you can turn off the sun but I'm still gunna shine" - Jason Mraz

mongoose's picture

I finished my sophomore year

O
(King Kong, 1,030
 
Points)
 on 5/31/12 at 12:37am

I finished my sophomore year of college. I am considering taking CFA I this December.

Can you guys please tell me how much it is going to take me to pass L1. The total costs including books, registration, exams fees, and any other relevant cost. Cost might be a significant barrier for me.

And where can I find the syllabus? I just want to take a look at the L1 curriculum before I spend money to register for it.

MoneyTalksMonkeysWalk's picture

$1400. While you are in

(Monkey, 43
 
Points)
 on 5/31/12 at 2:39am
jmayhem's picture

JamesHetfield: I finished my

O
 
Points)
 on 5/31/12 at 2:54am

"The power of accurate observation is commonly called cynicism by those who have not got it." - George Bernard Shaw

mongoose's picture

Are there any sort of fee

O
(King Kong, 1,030
 
Points)
 on 5/31/12 at 7:11am
MiddleofNowhere's picture

JamesHetfield: I finished my

(Chimp, 15
 
Points)
 on 5/31/12 at 8:03am
ERAnalyst56's picture

Level 1 isn't an absolute

O
(Chimp, 14
 
Points)
 on 5/31/12 at 10:32am
leehech's picture

I'm taking level one on

(Chimp, 2
 
Points)
 on 5/31/12 at 5:14pm

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