My TA from an Econ class told us today that he has quite a few friends working in finance, including BBs (GS, MS, blah blah). He had the chance to do several interviews with GS, but eventually he didn't pass the second to last round.
It seems to me that, although he didn't pass that round, he was probably on the right track to land a FO job at a BB/EB/upper MM, but he chose PhD instead.
Do banks recruit Econ PhDs? To do what job? Why would you choose a PhD/MBA over that job?
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If I got into a top PhD program for Math or CS, I would definitely do it personally.
Maybe. I'm a Math and Econ double major, but as I'm graduating I feel like I like Economics/Finance over Maths, which now involve a lot of abstract, pure proofs. My math professor (abstract analysis) told me that I'll probably never see something like this for the rest of my life...
Banks prefer PhDs for Quant roles. MBB also recruits a lot of PhDs
This isn't entirely true. Plenty of sell side quants who only have a bachelors/masters.
I meant that if you were a PhD it would be more likely that you would be a quant in a bank than in IBD or S/T. Not that quants are only PhDs.
I wouldn't pursue a PhD unless your job is paying for it. It's not coming out of my pocket.
most (reputable) PHD programs pay you to attend their program not the other way around.
I also heard from a friend of mine (PhD) that his professor won't let him graduate because the professor wants him to be an assistant like forever...that's really scary. The department didn't do anything because that professor is important to the university
Banks do hire Phd's, however, they will probably have an exceptional background to start with. Doing a Phd as a career move only seems worthwhile if it is required for a specific field or you want to be a professor.
One of my Econ professors who worked at the Fed as a Senior Economist told me that if I want to work in the private sector, for example in banks, I will be doing macro analysis and forecasts. If I can get into IMF or something like that, it might be the same (she was doing Econometrics at Fed), but less profit-generating-oriented.
Would implore you to look at the bio/background information for most senior execs in banking. PhDs are few and far between. I would say the best time value of money benefit would be on the side of not doing a PhD if banking is the goal.
Yes, I was just thinking about this possibility and this question popped up in my mind.
Some people might choose to do a PhD for intrinsic reasons (genuine interest, academic dick measurement etc) rather than to maximise their net worth.
"Well it's all just numbers really, you're just changing what you're adding up...and if I may speak freely the money is considerably more attractive here."
Information asymmetry.
A lifetime ago, I was in a PhD program (BME). Turned out learning to pipette with both hands wasn't as fun as I thought it would be, so I started looking for ways out. I asked around my program, both students and professors, about what my options might be.
The ensuing shitstorm was enormous. Other students were horrified. Leave before completing a degree-- you can't! YOU JUST CAN'T! Professors alternated between trying to convince me that I would never make as much money outside of engineering than in it, and threatening me with how much of a black mark my resume would have if I left.
I left, and turned out fine. The reason to get a PhD is an emotional fulfillment of a need for validation for some, and a pure enjoyment of intellectual curiosity for others. Very rarely does it make economic sense to get a PhD, given other available options.
Also, beware the advice you get from people in academia or on the academia track. They probably can't offer you an accurate viewpoint on the outside world, but it won't stop them from trying.
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THIS. RETARDED TWATS.
I made x (where x>1) times more money selling my startup than the annual salaries of all the professors in my department combined (27 asshats).
Yep. Turns out they were wrong, in my case.
At my university, about 1/3 of management,accounting,finance profs at some point interned/worked at MBB/BB/PE I don't thinks its that rare. Not everybody is aiming for Phd from the 1st day of bachelors, and top Phds are smart enough to get the job.
Probably won't pursue the PhD road. But I might need to get into some Econ programs or even data science programs at some target schools, who do not have Finance related masters.
This is such a stupid thread. It boils down to personal interests. Some people prefer private sector jobs some people prefer academia.
why the fuck would you go into banking if you had a PhD?
"Well it's all just numbers really, you're just changing what you're adding up...and if I may speak freely the money is considerably more attractive here."
Know a guy who did a phd in econ and is now MD at a top notch, credit hedge fund. My lecturer did his at MIT then worked for Greenspan at the FED (Lot of f2f interaction) and is now tipped to be the next head of my countries central bank.
good insight. probably wont pursue an Econ PhD myself, but this is definitely my second option.
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