| Topic Name: |
Financial modeling |
| Message Name: |
re:cfa |
| Date Posted: |
01/27/2000 |
| In Reply To: |
Undergrad:
"The Analysis and Use of Financial Statements" -- Gerald White et. al.
"Investment Valuation" -- A. Damodaran, a valuation guru at NYU business.
Dave:
In my opinion, the CFA ranks higher than the CPA in terms of prestige. In my business, I've come across many CPAs who don't know much about anything. The CFA program has both breadth and depth to it, its standardized, and takes an enormous commitment to complete the program.
Don't get me wrong. The CPA is a prestigious credential. I didn't pursue it because I found auditing to be boring. I would rather collect and analyze accounting/financial information and use it to make a decision. That's what the CFA teaches you to do.
Regarding the exams, level 1 is naturally the easiest of the 3 levels. Its a multiple choice exam (250 ?s over 6 hours) that covers everything from accounting to statistics--very much like a 4 year undergraduate business degree. The trick to passing level 1 is not to take it for granted. Levels 2 and 3 are essay examinations and are, from what I hear, much more difficult. I strongly encourage any aspiring financial analyst to go for the CFA!
Is the CFA a requirement for a career in private equity? I'm not a VCist, so I can't say for sure, but it certainly couldn't hurt. I don't believe there is a formula to become a VC. I would suggest that you visit the websites of some VC firms and study the bios of the principals. More often than not, they have investment banking and/or specific industry experience. In short, I believe most VCs get where they're at from experience and knowledge. The CFA may help you get into a firm (an I-bank) where you can gain that knowledge. Check out Vault's Guide to Careers in Venture Capital.
Hope this was helpful. |
| Message: |
I totally agree on your comments on the CFA and CPA exams. I am a CPA myself , I too the exam in my senior year in college, and boy is it boring-auditing and goverment accounting. I am an pre mba-analyst at a VC firm now ,and am preparing to take the CFA and I find the material far more interesting and challenging.
Although the CPA is kinda tedious I would advise prospective i banker analyst from non ivy schools especially, to take it as soon as possible. In my school we use to call the CPA the great equalizer ,because it put us on level ground and to an extent a slightly greater advantage in competing with ivy league candidates for ibanking and consulting jobs. The new qualification rules for the CPA exams include a requirement of 150 hours of college and 27 hours of accounting courses. I would advise prospective applicants to ake the exam by the end of the year just to be on the safe side.
As for the CFA, I was suprised to read in the literature supplied by the AIMR on the universal acceptance of the certification all over the world. For those taking the level 1 exam in June , I wish all of you the best of luck.
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