Best industry/job for entrepreneurship?
news flash: sorry kkr MBA-associates yall are never reaching even 50m plus net worth ever post ZIRP and multiple expansion.
Been reading a ton of the Forbes list mfs stories, and it seems like unless you’re the top macro PM at citadel during 2022, generational wealth achieved in one lifetime usually requires personal risk taking through insane leverage combined backed by a structural or cyclical tailwinds at the right time. (E.g. the internet, lng adoption in the US, digitalization in emerging markets, globalization of commodities markets etc)
I realize that oftentimes being in the right place at the right time got these guys their ideas that allowed them to become wealthy, and it makes me wonder what industry do yall think is the best place to 1. position yourself to know about insanely mispriced quality assets that can stably compound 2. Even have the credibility that will convince investors to entrust you with their money if you’re not nepo 3. Give you operational experience to actually be a good business owner once you’ve bootstrapped your deal.
If you read about a lot of the guys on the Forbes list, it’s not clear to me that their intelligence or hard work got them there, but what is admirable is their ability to size up and really go for it.
That being said, what career out of undergrad actually gives you the surface area to be exposed to good opportunities that you can personally leverage connections and debt to acquire while not having to go live in boston and get 3 masters while earning 50k a year so that you can discover some niche drug that you sell at at 3600% markup.
Thought about some ideas to get us started; curious to know what yall think.
1. Private equity - obvious. Constant LBO reps and analyzing businesses. Always on the lookout for deals and also have boardroom XP for street cred. Probably gives some LP credibility but fundraising is really a different beast that idk a PE vp could realistically even bootstrap a deal like that.
2. Commodities trading - learn flows and supply chains. Cmmodity houses Increasingly larger players in infrastructure. Could pull of a Kinder type move with LNG infrastructure where you buy assets from your former employer for dimes on the dollar. Not to mention you’re getting high cash comp and good aura. Also the industry seems pretty Wild West relative to Wall Street and you personally interact with tons of important counterparties and gain the personal trust of many UHNW individuals since your image is everything in commodities whereas you don’t even know your LPs until you’re senior in PE, and even then do you really own those relationships?
3. Consulting - don’t know much about it, but seems like it could be kind of light on the valuation skills and heavier on the operational stuff. Could be great for distressed buyouts and turnarounds.Not sure about this.
Let me know what you all think.
Bump
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