| Topic Name: |
ERP Consulting |
| Message Name: |
Not Quite Agreed |
| Date Posted: |
06/22/2001 |
| In Reply To: |
If you are making good money in SAP, I would stick with it. Here are my reasons:
(1) Lots of people get excited about an investment banking career thinking they are going to get rich. The reality is that at a minimum you will have to work 80+ hours per week to be perceived as worthy. If you go to the sell-side or buy-side, you will need the C.F.A. When I interviewed for the i-banking position, I wasn't told how difficult it was to pass the third C.F.A. exam. Even people with finance M.B.A.'s from good schools have difficult studing for and getting the C.F.A. If you are serious, I would get the M.B.A. and C.F.A. first, but then you need three references just to get into the C.F.A. program.
(2) Most people bomb out after two to five years. Most end up working with client companies as financial analysts, etc. Only the very dedicated and exceptionally talented people make it to the vice president level. Sure, you can get a vice president position at a smaller regional bank, but then, again, the real money to be made in i-banking is on the East and West coasts. And, in sell-side banking, only the really strong survive at the V.P. level and above.
(3) The market is terrible right now. No one is hiring on the sell-side and they are laying off. The last eight years has been an unbelieveable bull market that we probably won't see anytime again soon. Plus, when the going gets tough, the sell-side people jump ship for the buy-side, which provides for a more balanced life style. However, the buy-side is not hiring either, and you'll need an M.B.A. and a C.F.A. just to get your foot in the door.
(4) M&A is down too. M&A and corporate finance people work like animals. Mostly 100 hours per week.
(5) Spreadsheet modeling is a real drag. You end-up doing a lot of company modeling and industry research for deals and many times for nothing.
(6) For every i-banking job, there are probably 300 applicants with ivy league credentials. On the other hand, there are probably 50 SAP jobs for every SAP job applicant.
Think about this before you give up a high-paying SAP career.
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| Message: |
I tink you have to be more explicit with the word buy side and sell side. These words only apply to asset management and securities research.
Yes, the entry into i-banking is difficult and a CFA is not a ticket.
CFA is not difficult to pass. Most of my friend, include myself pass level III last year. This is exam is 50% multiple choice, even easier (no need to memorize). For those who can't pass CFA, they should not consider I-banking.
I am currently working in i-banking, the debt capital market division. the work is not as glorious as you think. out of 100 transaction you chase, only 1 or two may materialize, so a lot of frustration.
It did a double major in IT and did not choice IT as a career path. Now i regreat it.
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