Starting a career in ER

if you have skills in financial modelling, are familiar with some basic equities strategies, and stay informed on the markets then coming from industry can be a big advantage.

Thanks, that's a big help. A lot of what I do is competitor analysis, looking at the defense budget, other top ten defense firms, what they're product offerings are, how we expect their financials to move as a result. I recognize I have a lack of financial industry experience so that's the real question-

I plan to do an MBA, I'm debating whether to stay in the defense industry, get the MBA, then go into sell side or get a sell side job before the MBA. I've been out of undergrad for three years so taking a position (if i could get one) means another 2 years before MBA. I would definitely be more prepared, but at the same time I think I would stand out more from the MBA applicant pool working in industry and moving up rather than being just another faceless equity analyst doing the normal path. Thoughts?

why do you want to leave such a baller spot at Boeing/Northrop/Raytheon? Wouldn't moving up within the firms be a better option pre-mba and post MBA you can reevaluate.

That's true, I'm just trying to keep my options open down the road. My concern is that coming out of MBA, if you want to go into finance then wouldn't banks want to see that you already have previous IB experience, CFA, other credentials, etc.?

ER pays way better than anything you can do (short of being a very senior guy) in the industry.

Realize that once you go and get an MBA you get on a very tight schedule - so to go for aerospace/defense research position you better hope that there is one open in August of the year that you graduate and they are ready to recruit for it 6 months in advance. There are maybe 10 aerospace/defense groups you want to work for on the Street; each group has maybe 1-2 associate spots so that's maybe 15 spots total. As an MBA you are a part of very structured recruiting process where with very few exceptions you are supposed to have an offer by February/March of the year that you graduate - which makes hunting for a specific industry spot in ER very hard.

The math doesn't work in your favor - you should try to break in before you get your MBA and maybe forego MBA altogether (if equity aerospace/defense research is what you want)

CFA may be a better route.

CFA is a waste of time, particularly if your work won't pay for it - you should only do it if your employer makes you do it. Also, it is no longer a big differentiator as too many people outside the industry take it to break in - all it tells you is that you are good at taking tests - yes on the margin it will probably make a difference but on its own it won't really get you an interview or a job. MBA is a much better route for getting an ER job at a real firm.

"A waste of time" is a pretty strong claim considering how many people in the industry have it. As for "too many" people having it, sure it's less of a differentiator than it was, but that makes it more necessary, not less. I think that five years from now it's going to be expected that you have it for AM the way CPA is for accountants at Big 4 now. It's also much less expensive than a top MBA, especially considering that you have to give up a paying job to do the MBA.

All that being said, my company is both paying for it and requiring it, so I don't really have to weigh my options on this one.

My view is that if your career is doing well enough you should not have the time to pass the CFA

I didn't realize that industry research groups were that small. I thought they were much larger, at least at the lower levels.

I've looked up the research groups at a few BB's, it seems like a few have CFA's but the majority don't seem to have that accrediation or have an MBA instead. I know you don't need an MBA if you have analyst experience and get promoted, but my understanding is that unless you're a trader, you need an advanced degree to keep moving up.