[b][size=18pt]Is an MBA worth it for me?[/size]

Hi there, I graduated 3 years ago and have been working at a top investment manager in quantitative fixed income research. I am trying to figure out if an MBA is worth it for me and what my options now.

Brief background about myself, I graduated from Cal (Berkeley) Engineering 2 and a half years ago, and have been working at the investment manager in research since. I have passed all three levels of CFA and waiting for the charter (need another 1 and a half year of experience to receive charter).

I have been admitted to HBS but I am having second thoughts as to whether I should even do the MBA. My main concern is that I am making 170K all in this year and should break 200 in no time if I stay on. Does it make sense to forgo 2 years (400K) of income + pay 2 years of tuition and living expenses to get the MBA? Would it open up more options for me? Help me advance in my career? Another consideration is that I only need 1 and a half year more of work experience to receive my CFA charter, should I at least wait till then?

My end goal has always been to be a PM at THE Top funds like Blackrock/PIMCO or a top hedge fund.[/b]

Sagamite:

Is this possible:

http://www.wallstreetoasis.com/forums/is-an-mba-worth-it-for-me

Can someone really be making $170K dollars per annum 3 years out of university, have passed all 3 levels of CFA and still be so dumb to think he needs a Harvard MBA to achieve what he wants to achieve in life?

AjanleKoko:

Well, in his world, it adds to the prestige, certainly. It might guarantee him admission to the black-tie club of heavyweight fund managers. After all they're all Harvard or Wharton grads. Strictly for the networking, it's worth it to him. It's all about what someone wants at the end of the day.

Sagamite:

Honestly what is he going to do with the prestige?

If he is already making that much money, that means he is working for a reputable firm that makes money.

Why would some forfeit $340K salary to get prestige or network and then start looking for a new job? Is that intelligent considering the number of other avenues that one can use to the two?

What guarantee does he have that the people in Harvard he bonds with will end up as fund managers?

Laclasse:
Nice inputs from davidif and sagamite.

MBA is not really worth the stress and finance.
There are lots of books free of charge where one can get knowledge for all that MBA is offering.

Getting a certification could come in handy if you so much require the piece of paper.

davidif:


I don't think I agree with you on that sir. I learnt accounting, finance and management in the classes I took in school. I don't think I could have learnt them by just picking up a book and reading them.
It is necessary to be open minded about learning rather than being defensive and thinking that one knows it all.

Laclasse:
Nice inputs from davidif and sagamite.

MBA is not really worth the stress and finance.
There are lots of books free of charge where one can get knowledge for all that MBA is offering.

Getting a certification could come in handy if you so much require the piece of paper.

davidif:
The best B-schools in the world based on the two best sources: newsweek.com and businessweek.com are the following.


The University of Chicago http://www.chicagobooth.edu/

Northwestern University http://www.kellogg.northwestern.edu/

The University of Pennsylvania (Wharton school of business) http://mba.wharton.upenn.edu/

Harvard university http://www.hbs.edu/

Stanford University http://www.gsb.stanford.edu/

Massachusetts institute of Technology http://mitsloan.mit.edu/mba



Best business school outside the US is:

IESE business school (Spain) http://imba.ie.edu



This is just a short list, you can do further research with the links below.

http://grad-schools.usnews.rankingsandreviews.com/best-graduate-schools/top-business-schools/rankings



http://images.businessweek.com/ss/08/11/1112_best_business_schools/2.htm

http://images.businessweek.com/ss/08/11/1112_best_international_business_schools/2.htm

Sagamite:


Obviously the Harvard MBA if the no name MBA did not list some great outstanding past experience achievement in his CV.




I guess you probably would learn from the best professors. It is what I would term as a "premium" value proposition. But before I spend my money, I always look at the beneficial difference in the premium and ordinary, then I look at the cost of acquiring this beneficial difference, the realistic returns when it becomes an asset and the alternative opportunity cost.

That is why you would not see me buying a fantastic jacket from Harrods for £2000, when one of similar design but ordinary quality would cost £150 in Next. If I want premium quality, I would rather go to John Lewis and buy theirs for £350. Obviously the Harrods one would be better than John Lewis one, but the difference in quality would not be worth the £1650 difference (which a large part is the cost of the Harrods brand). And the John Lewis one would still be an asset that can generate almost similar impression with the Harrods one, if not then I would look for something else to achieve the effects goal at a fraction of the cost.

$100,000 to learn from anybody in my opinion is a rip-off, not even if it is learning from Wise King Solomon. I would consider it if someone else (e.g. my company) is paying.

Very few jobs would offer you returns on your investment, and those jobs that do are normally stressful and would get their pound of flesh.

If I had $100,000 to flung. I would rather start-up a business (the alternative opportunity cost) rather than do an MBA and then still have to circulate CVs and jump in a suit interviewing around for jobs looking for someone to employ me.





If one is so keen to learn such, buy their books. It would cost you less than $70, not one tenth of a million. You will learn more in it than you would learn in the 1hr they speakers would afford you and 100 other MBA candidates at any seminar.





Good ambitions, but take it from someone with similar bulge bracket background it is not the be all and end all. Your dream should be to set-up your own stuff. Working at GS might make you money but for most it does not bring happiness as it is cut-throat, back-stabbing and life-sapping.

Less than 30% of those that go to top MBAs would end up in GS and its like, less than 10% of these would excel in the way you hear in the sensational stories or profiles you read. So you are playing a high risk with your $100K, although it gives you an advantage but in the industry now the power of MBA is waning.

But as I said, it is a good ambition but a better one is to find a product or service people need and use your money to develop it and sell it to people. You get all the rewards and you are your own boss, no need for anybody to give aggressive appraisals despite your MBA. And you can keep a relationship with friends and family.

$100K investment, if spent right, can provide you with a business that turnsover $2m within 3 years, and the profit on that (and capital gains) would exceed virtually all jobs.

The whole alumni network thing is usually just a business school sales pitch to get their hands on your $100K.