Pivot From Public Equities
I’ve recently hit 1 year as an Equity Research Associate at a long-only asset manager (think Fidelity, TRowe, etc.) I was fortunate to join right out of undergrad. However, I’m starting to view this industry as unfulfilling.
I always thought that public markets investing was my passion. I ran my PA in high school and college with a borderline obsession. I love learning and competing and the markets are intellectual and meritocratic. Investing delivers a similar dopamine hit as gambling. It’s exciting to win contrarian bets and to see conviction vindicated.
I think that I could become a great investor, but I’m starting to wonder if it’s even something that I want. Most investors have limited impact on the world: there’s no product, no service, no real value creation. While capital allocation is necessary, one’s impact on the invisible hand is marginal. Public investing is like voting. Your vote has a limited effect on the outcome of an election but participation is needed for a functioning democracy.
I could stay in publics and gain meaning outside of work. I want to have a family and I realize that my priorities in life will shift. If I can obtain a public markets analyst seat, maybe I’ll be content, but I can’t help to think what if. There’s something telling me that I need to follow Bezos’ regret minimization framework. If I look back on my life and all I’ve done is outperform SPY by 200bps a year, would I be proud? And that’s the bull case. Underperforming investors are nothing but a friction on the world extracting management fees.
I think lack of impact is a reason that some of the best investors have left the game early. An example would be Nick Sleep closing the Nomad Partnership to pursue charitable ventures.
I don’t really know what’s next for me. I’m considering two potential paths:
1. Entrepreneurship. I don’t have any technical skills or an industry wedge so I think this is difficult in the near term.
2. Operator. The best operators think like investors (re. Outsiders CEOs). Joining a company I respect and progressing towards becoming a GM w/ P&L responsibility.
I’m interested in hearing from people that have left typical finance roles to pursue entrepreneurship or operating roles.
* What skills and experiences mattered the most for this transition?
* Did the compensation J curve play out as expected?
* Any regrets on leaving?
Based on the most insightful WSO threads, your situation resonates with many professionals who’ve felt the pull to pivot from traditional finance roles to something more impactful. Here’s a breakdown of your potential paths and considerations:
1. Entrepreneurship
2. Operator Role
General Advice for Transitioning:
Bezos’ Regret Minimization Framework
Your reference to Bezos’ framework is spot on. If you feel a strong pull toward creating something tangible or having a direct impact, it’s worth exploring these paths. The regret of not trying often outweighs the fear of failure.
Final Thoughts
Both paths—entrepreneurship and operating roles—offer the potential for greater impact and fulfillment. The key is to start taking small steps now: build skills, network, and explore industries that excite you. Whether you choose to build your own venture or help scale someone else’s, the journey will likely be more rewarding than staying in a role that feels unfulfilling.
Sources: Transitioning from tech to a serious finance job (yes, you read that right), Why You Should Launch a Startup Instead of Going to the Buyside, 6 Lessons Learned After Leaving Finance For Entrepreneurship, List of Transferable Skills in Corporate Finance
bump
can i get a referral
Personally, I’m 4 years into this journey and have enjoyed the constant learning and competition. One day, if I get to run my own portfolio, delivering good performance, accumulating assets and building my own franchise will hopefully bring me further fulfillment.
Personally, im not sure working at a company that produces “widget’s” would be any more fulfilling unless the product is extremely important to society.
I know what you mean, I am 5 years in to a PM role (in Fixed Income) and do feel the same in some ways. I guess my reflections are that this isn't AM specific. This is the classic quarter life crisis though and I think it hits all of us at this age. Priorities change, impact becomes important. I think unless you work for the Red Cross, you will struggle to find real career meaning in anything finance related (and yes I am with you, the idea we are allocating capital to help the world is a lie we tell ourselves).
That being said, I think you are on the right lines to try and find meaning in other parts of life. Meaning doesn't need to come wholly from part of our lives right? We can fine work interesting, well-paid, and somewhat meaningful, while also finding meaning by directing the free time we get and pay we earn into charities/church.
I don't question you questioning the meaning in this job. I REALLY question whether an entrepreneur / operator would offer you more meaning.
Really appreciate the thoughtful response. I’ve definitely been having a little quarter life crisis moment lol.
A lot of the reasoning behind my interest in operations type roles is the direct influence that decisions have on real outcomes. It’s fair to say that once I have this agency, I might not find meaning in it. It’s human nature to want what we do not have.
It's interesting you mention agency actually, as I was having this conversation with some colleagues (admittedly a bias sample) and I think investment management is one of the highest agency jobs. If you are a PM, you are able to basically do what you want. There is no politics in an investment decision (at least there shouldn't be) and the best investors I have ever come across are those who focus soley on the investment task and don't concern themselves with empire building / politics. So in many ways this is the ultimate agency job.
Unless you are literally the CEO in a company, I don't think you have the same agency. You will always be doing stuff to appease those above and below you. But I really don't know, i've only ever done this job.
It's good you recognise the "grass is always greener". I succumb to this often, and then get reminded how good we have it when I speak to friends in literally any other jobs lol
I don't get it, but that's fine. The money is really good relative to the hours and the work is highly intellectually stimulating. If I were you and wanted greater meaning, then 1) donate to meaningful causes and 2) volunteer yourself for meaningful causes in your free time
But if that's insufficient, then I can understand looking for exits. Recommend joining a late stage private tech company that is meaningfully impacting society. Avoid healthcare, because nearly every such healthcare startup trying to improve things eventually crashes
It’s not just lack of meaning.
The role is very independent and can be isolating at times. I need something with greater collaboration.
It’s intellectual, but the intellectual insights feel wasted. If I have insight into an industry, I’d much rather act on it in the arena than bet in the stands. I’m craving agency.
I want to lead. I think leadership in corporate America on the whole is subpar. Execs who instill purpose and get employees to buy in are rare. There aren’t many people who would say they’d run through a wall for their CEO.
My investing philosophy has evolved to the 3Cs: conviction + concentration + control. Betting on yourself in size is the only way to achieve right tail outcomes.
You articulated this very well. In that case, I couldn't agree more that an investing seat is unlikely to scratch that itch. There are investors and there are operators. While there are people that can do both, there is clearly 1 that every single person gravitates towards. For you, that is an operator role it seems
In that case, I wouldn't waste time but start thinking of what are optimal exits where you can maximize impacts and get the monetary right tail outcome. Just be careful on what you choose first and the potential from there (do a lot of diligence). Best of luck
Why do you recommend late stage instead of an early stage private company?
Thoughts on Investor Relations at a public company? Seems like a natural fit
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