MARK MELDRUM ON THE VALUE OF THE CFA CHARTER

[@tafadzwapikira3289]

Dr Mark doesn't only help me with understanding the CFA curriculum content , he helps me improve in everything that I do, thanks AJ.

[@danielkelly798]

I can categorically say from personal experience that the CFA has progressed my career a huge amount and I am not even a charter holder yet. About to do the level 2 exam in August. The respect it garners in the industry is enormous because of how grueling a task it is. When you say you are doing the CFA people know you are serious about what you do and how much dedication and commitment you have. Anyone who says it isn’t worth it is more than likely trying to come up with an excuse to discount it so they don’t feel as bad for not putting in the work.

[@straighttalks-ajsrmek323]

I agree. It helped me out a lot before passing L2 too. Your sentiment is probably true.

[@vanessa271]

I'm a CPA and a CFA L3 Candidate. CPA is no comparison to CFA. CPA is 90% easier. I'm glad the CFA pass rate is so low. If it were higher, I would not be interested in attaining it.

[@straighttalks-ajsrmek323]

Agreed! That is part of the attraction.

[@masterjiraiya348]

Hi vanessa, i wanted your opinion for the following. Since you have done doth CPA and CFA, Can you please tell me which will be helpful, if i wish to pursue a career in enterprise valuation, FP&A, rquity research. My primary interest is in valuations. But i see many telling CFA is primarily to get into portfolio management for other role such as the ones i am interested in CPA is better.

[@masterjiraiya348]

I am new to corporate world, its just been 10 months since i started working. I have completed CMA, I started CFA L1 but now i am getting confused. If i should have taken CPA or just move forward with CFA. I am from india so there are not many CFA prep providers here, but there are a whole lot of good CPA prep providers.

[@vanessa271]

@@masterjiraiya348 CFA is not only better but your only option (other than an MBA from a top school) based on your stated primary interest. the CPA program teaches Zero on valuation, equity research, or economics.

[@masterjiraiya348]

@@vanessa271 thank you vanessa.

[@munyachawora390]

Well said. Going to do level 2 again next year and I’m fired up for it!

[@straighttalks-ajsrmek323]

Best of luck studying!!!

[@Alfalehab]

How did it go? Excited to hear

[@gonzalomontes5091]

It is valuable till some good substitute comes and gets similar career rewards. CPA is not a near to perfect substitute and Mark explains the difference between both designations perfectly.... CAIA is not either, it is focused on alternative investments while CFA weights equity and fixed income much more at the same time it goes really deep in portfolio management.

[@induction7895]

Tbf, inorder to be a CPA you need 150 credit hours of college work. That can include the study of finance and economics in a deeper level along with all the accounting works.

[@parkevtatevosiancfa9544]

It’s def very hard. Not for those looking for short cuts.

[@shaunleo22]

Congrats on the growth of your channel! Been following for a while and it looks like your gaining quite a bit of traction! Awesome to see, I’ve considered starting a financial services related channel but figure I should finish up college and pass the CFP first.

[@straighttalks-ajsrmek323]

Thanks Shaun! I remember you commenting on some very early videos. And while you always just need to start, I do think having the academic background can help on social media!

[@faiden1273]

I love Mark but you should always take everyone's words with a grain of salt. Mark sells his cfa prep materials, so it is quite logical to assume he will say cfa is under no future threat.

[@alexsmith2766]

If you disagree with him, whats an alternative?

[@andreward8510]

@@alexsmith2766 AI

[@ashleigh3021]

@@alexsmith2766A comparable amount of time invested in learning full stack programming + data science will get you far further than a CFA Charter.

[@gaofenngwedire6917]

There comes out the secrete of formal education everyone seems so eager to get; "It's value is in direct proportion to how many people have it"

[@judeflx41]

Dear Mark is there a reason why your February 2022 package defer deadline is on December 15th.CFA's opening window to even put a request to defer is early Jan. I have not received the mock tests yet, it just seems a bit silly to make me pay another fee despite giving notice weeks prior . The program is already costly, especially for university students . Buying your material has helped me fill gaps in my knowledge thank you MM.

[@sanketsawant7475]

Yes agreed, not same nt kind of thing happened to me, his content is at next level no doubt abt it. Bt it seems gradually he is becoming busienssman from professor😀

[@unflappable6689]

Great info !

[@aboyinfinland9230]

Thanks AJ for this. You managed to talk to the very GOAT and you broadcasted it us. AJ, would you agree on a student aspiring to lecture in finance to do the CFA for the sole purpose of becoming an academic ?

[@straighttalks-ajsrmek323]

No, I think a masters or PhD are more beneficial for getting into academics.

[@moderngod1]

Hey Straight Talks. I got a financial question I oughta ask you. I’m currently shopping for transferring back to school (I got an associates already) and am really stuck on which one to choose. The CFA affiliated school which is in a much better climate is going to be $20-$25k a year, and that’s after grants etc. but a local school by me in the Midwest is only $3600 a semester, but NOT affiliated with the CFA institute. I’m really stuck on what to choose.

[@straighttalks-ajsrmek323]

While studying finance at a CFA affiliated university will help prepare you for the exams, it won't be 5-10x better like the price suggests!

[@moderngod1]

@@straighttalks-ajsrmek323 I do plan on buying prep material and creating an avid study plan for myself. I’m not guaranteed to pass level 1 but I do figure it’s worth a shot. Thanks for the insight sir! Much appreciated.

[@mohamedal-ghazali9190]

Hi there, it's pretty much impressive the CFA designation, and Mr.mark is absolutely killing it at all 3 levels . This Mohammedalghazali from sudan I'm CEO of E-commerce startup, I've subscribed to Mr.mark site L1 and unfortunately due to lots of deferrals, I've decided to let go because of my business, so is the CFA designation is going to help me a lot down the road, given that I'm entrepreneur not assets or a portfolio manager?!

[@straighttalks-ajsrmek323]

Probably not, but it wouldn't hurt! Best of luck with your business Mohamed!

[@yusufkaram2373]

Hey Straight Talks, Need help here if possible. I used to work as an general accountant and now working as audit associate in local CPA firm my contract as an auditor is for 2 more years, i really wanted to work in the financial analysis field and i love it and registered for CFA l1 exam but unfortunately I couldn’t take it, really i hate external audit. My question is Does studying for the CFA will help make the shift to FP&A even if I’m not that young (30 Years old) !?

[@straighttalks-ajsrmek323]

Yes, I think it will! Best of luck man.

[@yusufkaram2373]

Thanks 🙏

[@kastaway2]

It was my understanding that over the past 20 years the pass rate has become higher. According CFA data.

[@straighttalks-ajsrmek323]

Over the past 20 no it hasn't. On average.

[@Shazam_575]

As someone who's doing both CA(SA) (South African version of CPA and one of the highest rated in the world) and CFA, can sort of confirm what MM is saying. It seems we have a very unique opportunity in South Africa at UCT when you do a degree called, Business Science specializing in finance with accounting. I wrote the level 1 exam a month after finishing my final exams for my degree and only officially studied for CFA level 1 exam for 3 weeks because my degree prepared me very well for level 1. 2 years of economics, 2 years of stats, modules on Derivatives, corporate finance, etc and I literally only needed 3 weeks of prep studying for CFA ethics and mock exams and level 1 was soooooo chilled while still majoring in tax, financial reporting (IFRS), auditing and Management accounting. Wasn't aware that CPA vs CFA was so topical. I know a fair amount of people pursuing both

[@damiandennis7997]

Same as you Dean, did Bcom Rat, so ended up majoring in Economics and i it corroborates what Mark said. It definitely gave me a better understanding/exposure that straight CA SA does not provide. The two designations complement each other so well. Although I do wish more Austrian/Chicago economics were taught in main stream designations.

[@wunfoe]

While the CFA historically was strong finance credential, the CPA today is at the top of the hierarchy.

[@straighttalks-ajsrmek323]

The CPA is not really even close to the CFA in terms of prestige.

[@wunfoe]

@@straighttalks-ajsrmek323 Dude you can't compare a creditial to a professional license. A CPA is more respected than a CFA.

[@flj8]

What are you talking about? lmao

[@wunfoe]

@@flj8 Are you dumb? A CPA is a professional license regulated by the states and federal government. A CFA is just a creditial that you get from a nonprofit accreditation board after passing the tests and requirements that might differentiate you from a fellow co worker. They don't compare.

[@14534]

@@wunfoe like they said, it depends what kind of career you’re targeting. You referring to auditors, regulators, or controller-type careers? Sure, CPA has the CFA. Now if I were looking to hire an asset manager, wealth advisor, or research analyst, I’d take the CFA every day of the week and twice on Sunday. Lumping everything together and creating a ‘most prestigious’ in finance makes no sense, and really is just dumb.

[@masterjiraiya348]

Hi all, i just needed someone to give me an advice, i am CFA L1 candidate and my intention behind studying this course is to advance into enterprise valuation, FP&A or equity research careers. However i am really not interested in PM,AI or FI. Even while preparing i am not really interested to study these subjects, and find it hard to understand them as well. What should i do?

[@straighttalks-ajsrmek323]

Pursue the CFA and then get into the job you want!

[@jeffmack4561]

FP&A or enterprise valuation careers are usually tailored for people who have a foundational accounting background, so I would think twice about pursuing CFA for your intended career path. CPA could just as easily open the doors to what you’ve mentioned and it’s easier (would not say 90% easier unless you took the exams 20 years ago). Don’t buy into the CFA coolaid, a good CPA can make just as much (more if you start your own firm), you have more employability) not niche based, and more career opportunities to upper management (CFO, ( never met a CFO with a CFA yet), comptroller/Controller, Head of Treasury/Budgeting, FP&A, and even real estate taxation. Mark wont tell you this (not in his best interest).

[@straighttalks-ajsrmek323]

@@jeffmack4561 Hey Jeff, I think what you are saying makes sense for the FP&A role, but I know many equity research analysts and the CFA is far more desirable to all of them in that role!

[@BryWMac]

I'd say the CPA tbh if you want to get into FP&A. You can do both while working full time, it's manageable.

[@benjaminerrico6760]

If you have CFA or CPA, no major fund will let you manage their portfolio unless you have portfolio management experience. I’d trust a CPA with asset management experience over a CFA with no asset management experience and vice versa. CPA and CFA are useless without experience.

[@straighttalks-ajsrmek323]

But you cannot actually earn either of those designations without also having relevant experience so its not a concern.

[@benjaminerrico6760]

You can just work corporate finance which is not directly related to asset management. You can work fixed income which is not directly related to equity portfolio management. What I am trying to illustrate is that experience matters most. Equity experience feeds into equity portfolio management positions. Fixed income experience feeds into fixed income portfolio management experience. I know a lot of CFA holders that I wouldn’t blanket trust. I would, however, trust them in relation to their experience. Got a CPA friend stock picker who went on to be a equity portfolio manager and produced a lot of alpha.

[@straighttalks-ajsrmek323]

@@benjaminerrico6760 Good points, I see what you mean.

[@TrailWalker03]

My advice to anyone (particularly a fresh grad) looking to do the CFA program: DON'T. It's not a good use of your time. Chances are you won't make it through the program. And if you do make it through you probably won't be using your charter within a decade of completing. It takes the average candidate 5 years to complete the program. Around 20% of the people who start actually obtain a charter. If one still wants to do a CFA after hearing that my advice is be sure you want a career in the securities or related industry more than you want to draw your next breath. Front office finance is like pro sports in that careers are pretty short. In my experience 3 - 5 years. As a result people typically stop using their charter within a few years of obtaining it - early 40s for males and mid-30s for females. My advice to a young grad wanting a career in finance but unsure of the role and having a burning desire to do a designation: do a CPA. CPA vs CFA is swiss army knife vs scalpel. CPA skills highly transferrable between industries and age well. CFA equips you well but for a narrow range of jobs. Given the finance industry's rapid evolution the skills it teaches fall from relevance pretty quick (my CFA I exam required doing Dr/Cr entries on a columnar pad with a pencil!). If after a few years in the business you feel securities / asset management is the place for you THEN do the CFA. Having obtained the CPA first will make much of the CFA program a breeze.

[@user-ln2th5nq1g]

Except now it's less than 5% instead of 20%. From current trends, the pass rates are: L1 25% * L2 40% * L3 40%.

[@TrailWalker03]

@@user-ln2th5nq1g 😮‍💨

[@derrickadam1026]

My parents the type to pay thousands to upgrade they kitchen cabinets instead of studying something.

[@derrickadam1026]

I mean damn. Whatchu think the new desk, couch, and lamps and shit are for? From the time my eyes open to 5pm, haul ass with shitty internet. Then abuse public library internet.

[@thekid3521]

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