CFA or MBA?

[pisani]

I would like advice on which avenue I should pursue if I want to enter the world of value investing. First, do CFA or MBA credentials help get my foot in the door? If so, which is better? I would especially like to hear thoughts from people who have a CFA or MBA, if possible, people with both designations.

[berkshireadmin]

The CFA vs MBA debate comes up frequently, but for the most part, I don't think they are comparable. The MBA has two main values. One, the MBA provides individuals with networking and prestidge. In some glamourous businesses (investment banking, management consulting) you can't land a job unless you have an MBA from a top tier school. Second, MBA programs provide students with resources to explore other career opportunities. As a matter of fact, many people pursue MBAs in order to change career paths rather than to continue moving up the ladder of their current careers. So from a career perspective, MBAs cast a much wider net.

CFAs have a very specific target audience, those interested in pursuing careers in finance. In some finance positions such as research analysts, CFAs can be viewed as a substitute for an MBA.

[wrenwren]

I would add that if you decide to go down the CFA route, make sure you realize that it takes a serious commitment. There is a lot of information to digest so you cannot take it lightly and "cram" in the weeks before the test.

[wrenwren]

I would like advice on which avenue I should pursue if I want to enter the world of value investing. First, do CFA or MBA credentials help get my foot in the door? If so, which is better? I would especially like to hear thoughts from people who have a CFA or MBA, if possible, people with both designations.

I would add that if you decide to go down the CFA route, make sure you realize that it takes a serious commitment. There is a lot of information to digest so you cannot take it lightly and "cram" in the weeks before the test.

[IRR]

I might not be the best person to comment on this, but I felt inspired to take a stab at this after reading the transcript of the Buffett/Gates town hall meeting at Columbia.

CFA and MBA are often interchangable, but not really. But if you are interested in an asset management or wealth management position, that's probably where the two distinctions are most interchangable.

For trading, investment banking and private equity, CFAs are not very useful.

[Booth2012]

I'm not a big forum poster, but I had to respond this this thread. Friends and family ask me this CFA vs MBA question all the time. I understand why people outside of business and finance might ask this question, but I don't have patience hearing it from people that should know better.

The CFA program is great. For $500-1000 per test, and three tests, you get some kind of structured self study program where you learn a broad range of information useful for FINANCE. So in summary, CFA is great because it's a standardized certification, it's flexible (self-study) and it forces you to learn about a lot of stuff related to FINANCE.

The information you learn for the CFA is great, but it's a small subset of the MBA experience. Business school won't just prepare you for a finance job, it'll prepare you for a career in business and in some ways, prepare you for the rest of your life. Business school gives you an awesome foundation for your business network. Business school teaches you management and leadership skills by giving you opportunities to develop those skills in a low risk environment with classmates and on school related projects.

Maybe the stuff sounds like a string of business school buzz words, but just look at the admissions essays for University of Chicago's Booth Graduate School of Business. These essays tell you a lot about what the schools are looking at. This is in a totally different league compared to CFA.

Essay 1: How did you choose your most recent job/internship and how did this experience influence your future goals? What about the Chicago Booth MBA makes you feel it is the next best step in your career at this time? (750-1000 words)

Essay 2: Please choose one of the following (500 – 750 words):
Describe a time when you wish you could have retracted something you said or did. When did you realize your mistake and how did you handle the situation?
-or-
Describe a time when you were surprised by feedback that you received. What was the feedback and why were you surprised?