What is the point of the MBA for finance?

The consensus on this sub is that an MBA will not help someone with no buy side experience break into buyside post MBA. If someone has already made it to the buyside before the MBA what’s the point of spending upwards of 200k to simply return to the job one had before hand? Overall I want to see your opinions on the MBA for finance?

12 Comments
 

I wouldn't say it's impossible, but breaking into the buyside post MBA with no previous buyside experience is extremely difficult. Think about it, you're competing with students who have worked in PE/HF for limited spots. Why would any buyside firm pick you even if you went to a M7 school?

 

MBA for buy-side is an oligopoly-take-all. If you cannot get into H/S/W (Harvard / Stanford / Wharton), Booth or Columbia, you might as well hustle (network) to buy-side without doing an MBA

In terms of investment education, CBS is the best, with a value investing program taught by real investment managers.

Folks with pre-MBA buy-side experience usually do MBA to move into a more brand-name shop or move to a different style of investing (ie. Fidelity to Viking Global, or regional long only to Fidelity, etc.). I do hate those ppl because they clog up a spot that a career changer could have gotten at T Rowe or Fidelity or a Tiger Cub, but they have the right to do an MBA too I guess. 

Disclosure: I am not affiliated with any of the five schools aforementioned. 

 

Huge credibility booster for folks who weren't able to get into a target undergrad. It's stupid, but having Wharton on an MBA will change your perception versus just seeing their undergrad (random LAC most people never heard of). Also, the network is huge and can be highly beneficial for folks in IB, PE, VC when trying to win business. Will say that if you went to HYPSM undergrad, then yeah, I see little point in MBA

 

Let's flip it and view from the AM firm's perspective (really what matters). Many want to show their institutional clients their PMs, Strategists, and even Relationship Mgrs come from this M7 background espousing best in class talent pool. not that different form MBB winning the beauty contest (frequently) because so many of their consultants are "best and brightest hailing from H/S/W/Chicago"

 

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