How long for 15M NW?
Say I graduate college with no debt, already have $350K NW, work 2 years at a BB, then work at a MM HF while saving/investing aggressively and living frugally. How old would I be by the time I reach $15M in net worth, taking career progression into account?
I understand such a question has a very subjective answer depending on how one performs at their role at a HF, that said, I'd appreciate a general timeframe as an answer to my question.
“Career progression into account”
Median outcome is canned by year 4
What to do post-can?
Could very well be never. If you have a good trajectory at least 40, probably closer to 50. If you are very talented and lucky 3-5 years, but again it's impossible to say.
Focus on your skills, not the outcome at this stage.
I just wrapped up year 8 of MM HF career. After this bonus cycle, I'll be 2/3 of the way there. Stayed at same shop, have had 2 PMs, and have had economics on my PnL for the last 4 years. I didn't make much for the first 3 years (maybe $750k NW at that point + did IB before that). I've been fortunate and got lucky after things didn't work out with my first PM. I could pretty easily hit 15 in 2 years I think
It's a mix of smart PA choices and a few life changing bonuses. I'm married with no kids, live somewhat frugally (still rent, live entirely on my base. Wife doesn't work). I work 6 days a week
Model it out. Are you on a path to manage risk after 3-4 years? If so, are you capable of making $20-50+ of PnL every year? Do you have a PM that (fairly) splits the economics with you and rewards progression/longevity? If yes yes yes, you can add $1-4m of post-tax $s to your PA every year as an analyst (with economics - title varies firm to firm, you get the point). At some point you become a PM at your shop, or if you don't, you start responding to buyout offers. Save all of your bonuses, plow it all into stuff you think can comp 10-20% a year (indiv names outside of your coverage, if you're allowed to, otherwise ETFs) or buy RE. I think it's pretty doable and there are people with 6-10 YOE in the same range as me. There are also outliers / outcomes significantly higher and lower than myself. I wouldn't say I'm average, but I'm not even close to the top outcomes I've heard. You need to 1. be on a strong team or a team that can scale, 2. have a non-lunatic PM, and 3. be confident that you can make $ in this model and know your coverage in and out. It really isn't easy and this job isn't for everyone. One of the few careers that leaves its victims with bipolar disorder
To put the ranges in perspective, I know someone with the "analyst" title that made $15m last year alone. I also know guys making $700k-1m with a wife and 3 kids, saving $0 post-tax. Really damn hard to build NW in that situation.
Was that analyst at a MM or SM?
Wrote out an in depth novel for a college kid that probably just watched billions.
nice
Ha ha I didn't read the prompt fully. Hey can't ding the kid, he's hustling and wants to make $. I respect it.
If anyone has questions, I'll be around for the next hour or so before I chew my fingers off ahead of the 400 retail prints tomorrow AM.
any advice for MM graduate program joiners? how to think about pod placement across PM tenure, vol budget and gross managed and desired sector coverage?
Unless you work for the for 2-3 superstars at each of the big MMs, you'll likely end up working for at least 2 PMs over a 6-8 year time-frame. If you're not going to be a risk-taker under this person, it doesn't matter as much, but you should still try to find a good team with an experienced PM (who's a good human). I worked for 2 different PMs. Some people don't like that, others love it. I really enjoyed it. I got to learn 2 different, really unique (and thankfully complimentary) styles. First PM worked the hell out of me early on, taught me how to make money, and retired. Then when I joined the next team, I was ready to start running risk and it was a great fit
Pick the PM / senior analyst whoever that you best get along with. If there's chemistry, they'll invest a ton of time in you. You want a PM that likes you (sends you jokes/memes, tells you about their kids, etc). That's how you get them to be honest with you and invest time/resources in you. And be a sponge. Treat every IB message, meeting, mgmt meeting, earnings preview as a learning opportunity.
We had an intern on our team. He was really impressive, and we made it clear that we wanted to take him on. If you want to join a specific team, try to stand-out. Same goes for coverage - each sector has 5-10 teams at the big platforms (some more).
I'm planning to attend Ivey which is the top business school in Canada, but it's a semi-target when compared with US schools. How feasible would it be for me to land a job at a BB out of university?
LOL this is not even a college kid. Bro is a HS senior by his comment.
The youngest I have seen is 28. The oldest is never. This is not a career of averages. If you want to be average, you’ve already lost. Go do PE.
Love this
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