Is university right for me?
I'm currently a grade 11 student in Canada, and I've figured out that I eventually want to start a hedge fund; haven't figured out the specifics such as what type it's going to be (value, growth, quant) but I'm reading every book I can about finance to learn as much as possible.
The dilemma I'm facing is that I'm not sure if it's even worth going to university. The most prestigious university I can go to would be going to Ivey Business School as I can't attend any universities outside of Canada for various reasons. I also wouldn't be taking debt as my parents would pay for my degree.
If I were to go to Ivey, I probably wouldn't be able to raise money for a hedge fund right out of university, so based on what I've read here my career path would look like: IB (2 years) -> PE (2 years) -> HF -> Build track record -> Raise money and start HF in 30s, which sounds like a pretty reliable path, except...
Getting a 4.0 GPA and getting hired at an IBD in NYC would take a lot of time, which could otherwise be spent learning about how hedge funds conduct their operations and other finance-related knowledge.
I'm also pretty stubborn and I heavily dislike the education system and most of the people involved with it (students and staff alike); this however doesn't mean that I can't get good grades. I'm currently forcing myself to study hard and do well in school; but I don't want to spend another 4 years in university forcing myself to study boring, surface-level subjects and revolving my entire life around it. Not to mention that I'd have to spend another 4 years working in IB and PE which from what I've read on here and other finance forums is miserable in terms of WLB, meaning I wouldn't be able to garner much finance knowledge during my time as an employee.
The other option I'm thinking about is to ditch university entirely and spend a few years becoming extremely proficient in investing, and then finding a way to raise money. I'd live off of my current video editing business that I expect to grow to 6 figures a year, so money wouldn't be a problem for me.
The last part is what I'm not sure about. Would I be able to raise money without an undergraduate degree and no experience in finance? I suppose it would be possible but much more difficult. Michael Burry did it by garnering attention on online forums. But things could be different nowadays. I'm also an immigrant; I speak English very well but I have an accent; so not having a bachelor's degree AND not being a native English speaker could drastically lower my chances of being able to raise money. I also don't know how I would find and meet HNWIs so that I can convince them to invest in my HF.
Going to university seems to be the more reliable path, but the opportunity cost is too high. 4 years of my life learning bullshit about business leadership and supply chain management, and another 4 years working 80 hour work weeks in IB and PE diddling with Excel just doesn't seem worth it. If I only live once, it doesn't make sense to spend 8 years of it miserably. Also it's not like I'm going to Wharton, Ivey is a semi-target for US firms, which wouldn't guarantee me employment in a NYC IBD after graduation.
What do you guys think?
Ah, young grasshopper, you're at a crossroads many ambitious souls find themselves at. The path to starting a hedge fund is indeed a winding one, filled with both traditional and unconventional routes. Let's dissect your conundrum with a bit of wisdom from the WSO archives.
The Traditional Path: As you've outlined, the conventional route involves going to a prestigious university (like Ivey Business School), breaking into investment banking (IB), moving on to private equity (PE), then to a hedge fund (HF), and finally starting your own fund. This path is well-trodden for a reason: it works. It provides you with the necessary financial acumen, network, and credibility. Remember, in the world of high finance, pedigree can play a significant role in opening doors.
The Value of Education: While you express disdain for the education system, consider the broader benefits of university beyond the classroom. University offers unparalleled networking opportunities, access to recruitment for top firms, and a foundational understanding of business principles. It's not just about the grades but the people you meet and the brand you attach to your name.
The Alternative Route: Ditching university to focus on becoming proficient in investing is a bold move. It's true, some have succeeded this way (Michael Burry is a notable example), but it's the exception, not the rule. Without a degree and direct finance experience, raising capital will be significantly more challenging. Investors, especially High Net Worth Individuals (HNWIs), look for signals of trustworthiness and competence. A solid educational background and experience in finance are two such signals.
The Immigrant Factor: Being an immigrant and having an accent should not deter you from pursuing your dreams. The finance world is becoming increasingly global, and diversity is valued. However, without traditional credentials, you might find it harder to gain the initial trust of potential investors.
The Opportunity Cost: You're right to consider the opportunity cost of spending 8 years in education and traditional employment. However, consider this: those years are not just about earning a degree or toiling away in Excel. They're about building a foundation, a network, and a reputation that can accelerate your ultimate goal of starting a hedge fund.
Ivey as a Semi-Target: While Ivey may not be Wharton, it's still highly regarded and has a strong alumni network, especially in Canada and to some extent in the US. The brand and network of Ivey could be instrumental in your journey into finance.
In conclusion, based on the collective wisdom of the WSO community, the more reliable path for someone with your ambitions would likely be the traditional one, despite its drawbacks. The journey through university and the initial years in finance might seem daunting and at times divergent from your ultimate goal, but they are steps that build credibility, knowledge, and networks necessary for launching a successful hedge fund.
Remember, the path to success in high finance is rarely a straight line. It's filled with learning, networking, and sometimes, taking the scenic route to gather the experiences and credibility you need to achieve your dreams.
Sources: Help me choose the right university for Investment Banking, Worth it transferring to UVA?, The barbarians are at the gate! Of universities, moats and disruption!, Are you experienced? Thoughts on growing older, Why do overachievers think that finance is the sole route to success and riches
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