IBD-PE or Physical commodity trading to be a capitalist
Hello guys, thanks for all your great posts. I still got one question: Let’s say for my whole life, I don’t wanna keep working my ass off for my boss. If my goal is to get the primitive accumulation of capital before I start my own company/business/FO after and based on my job. Which job would you recommend? IBD-PE or Physical commodity trading? Have a nice day! (Maybe I should create a same topic in IB forum too but..
Hey there! If you're looking to gather some capital and eventually start your own venture, both IBD-PE and Physical Commodity Trading have their merits. Here's a breakdown based on the most helpful WSO content:
IBD-PE (Investment Banking to Private Equity): - Skillset: You'll learn rigorous financial modeling, due diligence, and transaction execution skills. These are valuable in understanding how businesses operate and are valued, which is crucial for running your own company. - Network: You'll build a network of high-net-worth individuals and institutional investors, which could be beneficial for future capital raising. - Capital Accumulation: Salaries and bonuses in IBD and PE are typically high, which can help you save up a significant amount of capital.
Physical Commodity Trading: - Market Understanding: You'll gain a deep understanding of global markets and how geopolitical and economic factors affect commodity prices. - Risk Management: Trading teaches you how to manage risk and make decisions under pressure, which are essential skills for any entrepreneur. - Potential Earnings: While trading can be volatile, successful traders can accumulate substantial capital through bonuses and profit-sharing arrangements.
Ultimately, if you're looking for structured training and a broad network, IBD-PE might be the way to go. However, if you thrive in a fast-paced environment and are good at managing risk, Physical Commodity Trading could be more lucrative in the short term. Both paths can lead to the accumulation of capital, but they offer different experiences and skill sets that could be beneficial depending on the type of business you want to start.
Remember, it's not just about the money; it's also about the skills and network you build along the way. Choose the path that aligns with your interests and strengths, and that will likely be the best for your entrepreneurial journey. Have a fantastic day, and don't hesitate to reach out if you need more insights!
Sources: Physical Commodity Trading career: If you started over again., https://www.wallstreetoasis.com/forum/investment-banking/should-i-pursue-st-or-ib?customgpt=1, Why are we doing IBD again?, Physical Trading: Best commodities to be in?, A few questions on getting started in physical trading
You’re always going to have a boss- whether that is a director at a F500 or customers of your startup or investors of your corporation.
But if it comes to just making money really fast to do something else with, physical trading is not ideal because the route to get to a good spot can take many years, during which you are not paid as well relative to other finance jobs. On the other hand, you might make more predictable and higher on average in banking for a few years out but you won’t have time to work on your business if you are spending 2x as much time on work. Really the only thing that comes to mind is prop trading where you can make a few hundred k your first year out and the sky’s the limit in a few years.
Thank you for your help! I think the only thing that I really dislike is quant jobs. Quants are cool but not for me, in that circumstance, is it possible to for me to do HF or some other jobs? or just the choices between banking and physical trading?
For many reasons, I don't think which one is better matters. Whoever takes you is the realistic choice.
If you luck into a good seat with only a minimum waiting time before trading>sure, go make your killing in comm trading. If you are en route to graduating from an ivy and joining the bullpen of a BB, you might make more on average early on depends on when you want out.
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