Booth MBA worth it?

seventhcereal's picture
Rank: Monkey | 51

so I see several UC Booth MBA's grads 2 years older on linked in are trapped at equity analyst level at morningstar. Crosslink with glassdoor I see they are making less than 6 figures. Is that a splash of cold water for MBAs? I nearly laughed when UC booth openly said it would be 90k a year like it was nothing. This investment is questionable to me. I can think of several better ways to put 200k to work.

Comments (31)

May 27, 2013

Ugh. That rough. I think if you're two years out of Booth working at MStar you ... Suck, right? That can't be the norm....

May 27, 2013

And I'm sure if you dig around you can find Booth grads working at NGOs or non-profits making $45k a year. That doesn't mean going to Booth is a bad investment. Look at the actual employment report if you want a real picture and not just cherry picking the worst 2 examples you found on LinkedIn.

May 27, 2013

"Trapped" seems highly subjective here. Have you talked to them, know what their career goals are, or where they want to be in five years? Morningstar is definitely not the most prestigious place within finance to find yourself, though this random search of yours seems WAY too anecdotal to derive a meaningful conclusion. This post appears to be an effort to convince yourself that the Booth MBA is not of value. And enlighten us, what would you do with that 200k in this market?

May 27, 2013
eriginal:

"Trapped" seems highly subjective here. Have you talked to them, know what their career goals are, or where they want to be in five years? Morningstar is definitely not the most prestigious place within finance to find yourself, though this random search of yours seems WAY too anecdotal to derive a meaningful conclusion. This post appears to be an effort to convince yourself that the Booth MBA is not of value. And enlighten us, what would you do with that 200k in this market?

Would simply like to know what makes other peoples' brains tick about this. Maybe I'll have a change of heart if someone makes a good case. I'm already at where people hoping to get MBA's hope to go afterwards. I just want to know why people want to do this so badly.

Many ways to utilize 200k, you think one dimensionally when you make a knee-jerk association of investing and "market."

May 28, 2013
seventhcereal:
eriginal:

"Trapped" seems highly subjective here. Have you talked to them, know what their career goals are, or where they want to be in five years? Morningstar is definitely not the most prestigious place within finance to find yourself, though this random search of yours seems WAY too anecdotal to derive a meaningful conclusion. This post appears to be an effort to convince yourself that the Booth MBA is not of value. And enlighten us, what would you do with that 200k in this market?

Would simply like to know what makes other peoples' brains tick about this. Maybe I'll have a change of heart if someone makes a good case. I'm already at where people hoping to get MBA's hope to go afterwards. I just want to know why people want to do this so badly.

Many ways to utilize 200k, you think one dimensionally when you make a knee-jerk association of investing and "market."

I also work on the buyside at a top firm, though we have several people every year that seek additional training by earning their MBA from a top school. The MBA obviously does not guarantee you anything and there will definitely be outliers, though I would argue that for the majority that attend a top 5 program, the true opportunity cost for most (400K = 200K+100K/year) is well worth the additional income/quality of life earned. Also, maybe those Morningstar Analysts had a terrible quality of life working slavish hours at an IB and wanted to transition to a lower pay/better quality of life/lower stress position. This is why I bring up your subjective analysis of these Morningstar Analysts: your conclusion is completely based on what you would want out of an MBA. Not everyone wants to be running the next high profile hedge-fund, or center their life around their career - many intangibles here.

To your second point: most asset classes seem at least modestly over-valued, with many reaching unsustainable territory - I think most people would agree with me. Stocks are hitting record highs on mediocre earnings, yields are historically low, and residential RE just saw the biggest monthly jump in 7 years on low inventories. Yes, the "market" is broad term, thank you for pointing that out, though I feel you're side stepping my question here. There are many "hail mary" plays to be made, though I would argue on a risk-adjusted basis, that 400K would be more wisely invested in your future potential. For most young people, the future potential of their earnings is their biggest asset, so again, where are you truly seeing these potential opportunities that the entire investment community has been missing?

May 27, 2013

Nice logic OP. There are probably people who went to HBS that are now homeless/bankrupt, but does that mean anything?

May 27, 2013

so withdraw your app, dont go, and let someone who wants in off the waitlist if you think its beneath you or not preftijus enough. simple as that

May 27, 2013

Facts: http://www.chicagobooth.edu/employmentreport/emplo...

McKinsey, 28
BCG, 24
Bain, 21
BAML, 14
CS, 14
MS,14
GS, 9
Citi, 7
DB, 7
JPM, 7

Morningstar....

Hardly seems like "trapped" to me.

Oh, And median salary (http://www.chicagobooth.edu/employmentreport/funct...), $115K (Max 240)

Feeling Good, Living Better

May 28, 2013
CarriedDisinterest:

Facts: http://www.chicagobooth.edu/employmentreport/emplo...

McKinsey, 28
BCG, 24
Bain, 21
BAML, 14
CS, 14
MS,14
GS, 9
Citi, 7
DB, 7
JPM, 7

Morningstar.... <4

Hardly seems like "trapped" to me.

Oh, And median salary (http://www.chicagobooth.edu/employmentreport/funct...), $115K (Max 240)

Yes those are good statistics, but they churn out a class every year and those underpaid grads stack up over time, not quite as fast as the student loan interest though. There is success of course, you guys are like buy and hold investors, you focus on the upside but fail to think about the downside. Can we have a sensible discussion without getting so defensive?

May 28, 2013
seventhcereal:
CarriedDisinterest:

Facts: http://www.chicagobooth.edu/employmentreport/emplo...
McKinsey, 28
BCG, 24
Bain, 21
BAML, 14
CS, 14
MS,14
GS, 9
Citi, 7
DB, 7
JPM, 7
Morningstar.... <4
Hardly seems like "trapped" to me.
Oh, And median salary (http://www.chicagobooth.edu/employmentreport/funct...), $115K (Max 240)

Yes those are good statistics, but they churn out a class every year and those underpaid grads stack up over time, not quite as fast as the student loan interest though. There is success of course, you guys are like buy and hold investors, you focus on the upside but fail to think about the downside. Can we have a sensible discussion without getting so defensive?

Ultimately, it comes down to the individual. Do you have the potential to be in the top 10% (of a top-tier school) or not. Booth and others will only give you a small chance. But if you think you can really do it, you have a better shot at Booth than at University of Illinois or something. If you don't have what it takes, re-evaluate.

Feeling Good, Living Better

May 28, 2013
seventhcereal:
CarriedDisinterest:

Facts: http://www.chicagobooth.edu/employmentreport/emplo...
McKinsey, 28
BCG, 24
Bain, 21
BAML, 14
CS, 14
MS,14
GS, 9
Citi, 7
DB, 7
JPM, 7
Morningstar.... <4
Hardly seems like "trapped" to me.
Oh, And median salary (http://www.chicagobooth.edu/employmentreport/funct...), $115K (Max 240)

Yes those are good statistics, but they churn out a class every year and those underpaid grads stack up over time, not quite as fast as the student loan interest though. There is success of course, you guys are like buy and hold investors, you focus on the upside but fail to think about the downside. Can we have a sensible discussion without getting so defensive?

You clearly don't have what it takes and would be lucky to earn a spot at Morningstar making $75K.

    • 1
May 28, 2013

'Is it worth it' depends on your starting point. Where are you now and where do you want to go?

May 28, 2013

Look at all the Booth fan-boys getting all sensitive here. LOL!

May 28, 2013

Not sure what "Booth MBA being worth it" means. In terms of ROI? I'm sure a Booth MBA is "worth it" for some and not worth it for others. Just like at any school for any degree.

May 28, 2013

Is equity research a trap? Ok maybe at Morningstar. But working in equity research at a top BB like Citi or JP Morgan seems to be quite a desireable career, isnt it? I hear so much bashing on ER. Is it really that bad? ok you probably wont earn what you might get in M&A or some areas of trading, but it is still a lucrative career (if at a good firm, ofc), isnt it?

May 28, 2013

The OP's thread takes the cake for one of the dumbest posts in WSO history. Wow. WTF is going on with WSO these days?

May 28, 2013

OP, you wrote a very ignorant post. To judge an entire school on the basis of a few people getting jobs that you consider less "desirable" is utterly ridiculous. There's been plenty of posts on WSO about whether an MBA or a certain school is worth it. Ask yourself what your short and long-term career goals are, how happy you are at your current job, what is important to you, where you see yourself further down the road, and whether you're comfortable making a big investment for b-school. Only after you have honestly answered these questions will you know whether it's worth it.

May 28, 2013

again, is ER really a trap? I mean, at a top bank like Citi or MS, for instance? Why do people always say that? I've always equity research at a BB (not talking about Morningstar ofc, not even a bank) is a highly sought-after career? any comments/ insights greatly appreciated

May 28, 2013

Regarding Morningstar: I've spoken with multiple people there and once again it's what you're looking for and not about the brand name. Sure you can work BO at GS, but is that really what you want?

What they summed it up as less than ideal pay, extremely nice lifestyle (let me say extremely again), and ok exit opps. Some people dig that so it works out for them.

People really have to look past prestige. The only thing that matters is if you're happy with your current situation and if you're able to get where you want in future years. Prestige is part of it but certainly not all of it.

May 28, 2013

Sounds like someone got dinged from Booth.

May 29, 2013

I graduated from Booth full-time and honestly don't know a soul from my class who went to Morningstar. However, I did meet a couple part-timers that were having their education paid for by the firm. I also doubt they're making 70k POST MBA completion, maybe while working on completing their MBAs.

So OP, do you think you might be off base a bit? The part timers who work at Morningstar good a pretty good deal IMO.

    • 1
Jun 2, 2013

I second the previous post, the fact is there are a big difference between part time and full time MBA at Booth, maybe the guys are part time MBA ?
I graduated from Booth in 2011, making 200k+ a year working for a bank, and actually most of my friends landed a job in banking/consulting ( think about BCG or DB ), some works in finance dpt for F500 companies, it doesnt pay that much, but it s still a good career path/salary, and they are doing decent hours, it depends on what you want out of life.

Jun 2, 2013
Comment