I have noticed that the philosophy of many young people today is to pick the best company regardless of industry. The default decision-making process seems to be "should I work at PE at Blackstone or Consulting at McKinsey or IBD at GS or Software Engineering at Google"
Little thought, attention or due consideration is given to which field you actually like. I am a culprit of such thinking and I can see how such thinking can lead to suboptimal career outcomes in the long-term.
I argue that it is better to pick a single industry of focus, and get direct exposure in that space (without regard to brand), e.g., if you like Restructuring do not pick M&A because it is at GS, take a step back and accept that no-name boutique RX shop that will give you directly relevant experience.
This way, it is easier to pick an industry and then develop a continuous set of skills and expertise that compound over time and ultimately allow you to become more valuable and trade up firms.
The benefit with this approach is that:
1. No time nor experience is ever wasted because it keeps building your skills in an industry-vertical
2. You develop better, long-term career stability, not tied to any one firm but to your commitment to the industry
3. People in the industry of your choice will enjoy sharing their learnings and taking you under their wing as you show this resolve to stay committed to your industry
4. Interviews and lateral moves will come with ease as you naturally build your profile so perfectly for any job you apply to in that industry
Note that you are limiting your "total addressable universe" of opportunities but your fit in your area will be so much better.
Warning:
There are a few drawbacks. Mainly, you need to know what it is that you want to specialise in (and conquer the associated FOMO. I argue this takes sheer will power, just pick something then put the blinders on. It is not about what you do but how you do it). Also, this strategy is a "long term greedy" play. In the short term you will see less focused individuals optimising for brand "succeed" more quickly at better firms. I argue, that without deep conviction and purpose, they will fizzle out, while you slowly continue to build your commitment, knowledge, deep expertise, and passion.
The above I hope provides a framework to remedy the chaos that is "prestige-chasing" and can be, what I hope, a starting point on how to navigate your career after the infamous 2+2+2 path.
Based on the most helpful WSO content, here are the key points and benefits of committing to an industry rather than a firm:
Benefits of Committing to an Industry:
Continuous Skill Development:
Long-term Career Stability:
Industry Networking:
Ease of Interviews and Lateral Moves:
Drawbacks and Considerations:
Need for Specialization:
Long-term Strategy:
Framework to Navigate Career:
Avoid Prestige-Chasing:
Commitment and Passion:
This framework provides a structured approach to navigating your career, especially after the typical 2+2+2 path in finance.
Sources: Restructuring prospects, why you should not consider restructuring, Restructuring prospects, why you should not consider restructuring, Switching from 'Industrials' to 'Restructuring'., Thoughts on Restructuring Groups?, Post MBA IB: deciding which group?
You just discovered job specialization lol. That’s why everyone over the age of 25 says “I’m an investor” or “I’m a banker” rather than “I’m a GS banker” or “I’m a KKR investor”…it actually should have never been about corporate brand - that always was meant to be a proxy for quality of skill development, not a ruler to measure one’s “I’m so important” dick against.
I agree
Eh I went all-in on one industry (healthcare). Part of it was because I was naive to believe it was recession proof. These past two years have proven otherwise.
I wish I pursued a more generalist oriented career nowadays.
hang in there - long term your specialisation will likely pay off
True, it likely will.
A few thoughts:
- There is value in being a jack of “some” trades. Reading broadly, liberal arts education, and acquiring taste and wisdom in an interdisciplinary manner can pay off. People like Charlie Munger, Elon Musk, and Howard Hughes are a testament to this.
- I think that we should constantly think about the opportunity cost of the career path that we are pursuing, especially in the modern world. With the ever-changing world we live in, opportunities come and go and if we just “pick a field” and specialize in it, we might miss out on amazing opportunities.
- I agree with the fact that students should be less obsessed with prestige and be interested in learning about the industry they are pursuing. However, status and prestige does actually matter, especially when we are going to have a long career path ahead of us. The brand names on one’s resume can massively boost the odds of one’s success early on in career, especially in today’s ultra competitive world.
Agree with #1 and #2. Not sold on #3. Many people carve their niches and make great money at companies you've never heard of. Less competition at less well known / less 'prestigious' companies. Strong performers can rise quickly via promotions / getting pouched by competitors.
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