In this video, the creator discusses various finance careers, ranking them from S (best) to D (least favorable) based on their pros and cons. The aim is to provide insights for those new to finance or considering different career paths.
🧠Tier Rankings
Venture Capital
- ProsHigh potential returns, ability to make a positive impact, solid work-life balance, and less likely to be disrupted.
- ConsRequires strong skills and can be competitive.
Quantitative Trading
- ProsHigh performance-based pay, minimal face time, flat hierarchy, and immediate impact of work.
- ConsHigh stress and potential for burnout.
Portfolio Manager
- ProsHigh compensation, significant responsibility, and diverse tasks.
- ConsHigh stress and performance-driven environment.
S Tier
A Tier
Private Equity
- ProsBetter work-life balance than investment banking, interesting work, and high pay.
- ConsCriticized for practices that can harm companies and employees.
Risk Management
- ProsDiverse role, good work-life balance, and proactive problem-solving.
- ConsHigh stress and accountability for failures.
Investment Banking
- ProsHigh starting salary and opens doors to other finance careers.
- ConsLong hours, high stress, and often mundane tasks.
B Tier
Sales and Trading
- ProsClient-facing role, more relaxed hours compared to investment banking, and solid exit opportunities.
- ConsPerformance-driven and competitive.
Investment Advisor
- ProsRelatively chill work environment and educational focus.
- ConsDiminishing relevance as financial education increases.
Equity Research
- ProsProximity to company executives and opportunity to produce impactful reports.
- ConsRepetitive work and declining industry relevance.
C Tier
- Accounting
- ProsStable career path.
- ConsLow pay, high automation risk, and often seen as mundane.
✨ Key Takeaways
- Career LongevitySome roles, like accounting and investment advising, may face diminishing relevance due to automation and increased financial literacy among the public.
- Work EnvironmentRoles vary significantly in terms of stress levels, work-life balance, and the nature of tasks (client-facing vs. desk-bound).
- CompensationHigh-paying roles often come with high stress and performance expectations, particularly in investment banking and portfolio management.
🧠Lessons
- Choose WiselyConsider personal interests, work-life balance, and long-term career viability when selecting a finance career.
- Skill DevelopmentMany high-ranking roles require a strong skill set, including financial modeling, client management, and analytical abilities.
- NetworkingBuilding relationships is crucial in many finance careers, especially in sales, trading, and venture capital.
This tier list serves as a guide for individuals exploring finance careers, helping them make informed decisions based on their preferences and career goals.