Is it worthwhile for someone, whose career goal is to become an investor entrepreneur like Warren Buffet, to acquire a Chartered Financial Analyst (CFA) credential, as well as an MBA?
This question posed by a mechanical engineer working for a German multi-national on Quora elicited answers giving the go ahead as well as some that questioned the need to carry a double-barrelled qualification.
Gaurav Agarwal, who has completed the first two levels of CFA says that the rigorous curriculum of IIM Finance ensures that the students learn quite a lot about management through cases studies and quizzes as also economics and finance. Above all, you learn time management that makes a difference in the long run.
CFA with 10 subjects in level 1 and 2 builds a strong foundation for level 3 that focuses on portfolio management with 6 related subjects.
Acquiring both the degrees makes you not only Master of Finance but also of Business. Add to this the technical knowledge of an engineer.
However, it would need 4-5 years of working in an Investment Bank to give the time to learn about changes in economic cycle affecting investments. The next step is to start your own investment business.
Saurabh Toshniwal, CA, a Business Consultant, cautions against people going into finance just for the money because there are more lucrative avenues elsewhere. Also there is no need to pursue engineering or any other degree due to societal or parental pressure.
While an engineer in an MNC could boost his earnings and career prospects substantially by acquiring an MBA and CFA before starting from zero as an entrepreneur, he should be aware of the amount of time, patience and effort taken to reach the goals.
The risks involved for a person without a Commerce background and in the age group of around 24-25 years, getting into IIM would be difficult, at least 2 years would be spent if you do PGDM.
Then, for getting practical experience, you take up a job and if it is paying well enough, CFA will become a second priority. Even Chartered Accountants find CFA tough.
Assuming that CFA is completed, you again need practical experience as CFA is a correspondence course. You need to work at least 2 years in a finance company.
After these many years you may be married and having kids, with an active social life and good salary, incentives would be low to switch over to entrepreneurship.
If you start a firm, you are back to zero. You also need right people to run the organization. Then only the growth path starts.
ALSO READ: Despite Some ‘Bitter Truths’, Everyone Wants To Be In IIM
Thus, it would be advisable to skip the MBA part and go directly for CFA that could be done even while retaining a job. The 2 years saved by not joining an IIM could be sued to get practical experience in a finance company and then on to establish your own firm.
Sahil Kukreja, PGP 2015-17, IIM Bangalore has also passed two levels of CFA, USA examination. He says CFA and MBA are good to acquire knowledge about finance. But those wanting to become an investor like Buffett should start investing to learn about the field and chart a path to success through experience.
Akash Tharad, CFA, however, feels that MBA Finance and CFA are similar with almost 70% of the topics being common to both. The job columns mention either MBA or CFA and not both. But then CFA in itself is a rewarding course. (Image Courtesy: www.youtube.com)
