Is University Even Worth It?
I'm currently a grade 11 student in Canada, and I've figured out that I eventually want to start a hedge fund; haven't figured out the specifics such as what type it's going to be (value, growth, quant) but I'm reading every book I can about finance to learn as much as possible.
The dilemma I'm facing is that I'm not sure if it's even worth going to university. The most prestigious university I can go to would be going to Ivey Business School as I can't attend any universities outside of Canada for various reasons. I also wouldn't be taking debt as my parents would pay for my degree.
If I were to go to Ivey, I probably wouldn't be able to raise money for a hedge fund right out of university, so based on what I've read here my career path would look like: IB (2 years) -> PE (2 years) -> HF -> Build track record -> Raise money and start HF in 30s, which sounds like a pretty reliable path, except...
Getting a 4.0 GPA and getting hired at an IBD in NYC would take a lot of time, which could otherwise be spent learning about how hedge funds conduct their operations and other finance-related knowledge.
I'm also pretty stubborn and I heavily dislike the education system and most of the people involved with it (students and staff alike); this however doesn't mean that I can't get good grades. I'm currently forcing myself to study hard and do well in school; but I don't want to spend another 4 years in university forcing myself to study boring, surface-level subjects and revolving my entire life around it. Not to mention that I'd have to spend another 4 years working in IB and PE which from what I've read on here and other finance forums is miserable in terms of WLB, meaning I wouldn't be able to garner much finance knowledge during my time as an employee.
The other option I'm thinking about is to ditch university entirely and spend a few years becoming extremely proficient in investing, and then finding a way to raise money. I'd live off of my current video editing business that I expect to grow to 6 figures a year, so money wouldn't be a problem for me.
The last part is what I'm not sure about. Would I be able to raise money without an undergraduate degree and no experience in finance? I suppose it would be possible but much more difficult. Michael Burry did it by garnering attention on online forums. But things could be different nowadays. I'm also an immigrant; I speak English very well but I have an accent; so not having a bachelor's degree AND not being a native English speaker could drastically lower my chances of being able to raise money. I also don't know how I would find and meet HNWIs so that I can convince them to invest in my HF.
Going to university seems to be the more reliable path, but the opportunity cost is too high. 4 years of my life learning bullshit about business leadership and supply chain management, and another 4 years working 80 hour work weeks in IB and PE diddling with Excel just doesn't seem worth it. If I only live once, it doesn't make sense to spend 8 years of it miserably. Also it's not like I'm going to Wharton, Ivey is a semi-target for US firms, which wouldn't guarantee me employment in a NYC IBD after graduation.
What do you guys think?
Also reposting because the other post I made didn't get any replies.
If you think it's going to be hard to raise capital after years of college+IB+PE imagine how hard it will be to raise without any of that experience. Seriously, not trying to be a dick, but you need to consider the likelihood that a HNWI is going to bet on the kid without a degree or prerequisite experience who promises he'll be successful because he's read Dodd and Greenblatt in his free time. If your parents are willing to pay for your education, I think you should take it, but from your aversion to the grind of ib and pe you should really make sure this is what you're interested in.
Grade 11, so you're like 16-17? You're going to be a completely different person in 5-10 years. You probably won't even want to start a hedge fund. With that said, no one will give a kid money without an education. Michael Burry studied economics and is also an MD. Yeah, he was discovered on some forums, but that conversation would have ended pretty fast if he hadn't had a degree of some sort. He's also an outlier (look up survivorship bias). Jay-Z dropped out of high school to sell drugs and rap, became a billionaire, and married Beyonce, but would you advise anyone to drop out of high school to sell drugs and rap?
You will need to do whatever it takes to achieve your goal. Starting a hedge is a long-term goal. Realistically, no one is giving some 20-year-old kid with no education or experience in the industry anything to invest in. Your pitch is basically, "I got no education, I never worked in finance, but trust me bro, I'll make you rich." You wouldn't even get a meeting. If you're not willing to spend at least four years in college, you don't want to start a hedge fund.
Also, think about the relationships you'll make at a prestigious college. Those kids you get drunk and party with grow up to have access to a lot of money and become influential people, and some of them will remember their best friends who were around for some of the best years of their lives. That's the real benefit of getting into a prestigious college.
College isn't for everyone, and I'll even say college isn't for most people. However, if you want to start a hedge fund, you need to get a degree or two and put in your years in the industry.
Unfortunately, if you have this many doubts, you should reevaluate your goals. I honestly don't think you want it bad enough, and that's ok. Most 11th graders don't know wtf they're doing. Ask yourself why you really want to start a hedge and then question the reasons for those reasons. The hedge fund industry is like the NBA for some of the world's most intelligent and competitive people. You gotta be all in, and I don't think you are.
Literally 2 weeks ago you posted saying you want to start a PE firm. Now imagine being in uni and actually doing internships over a much longer time span than 2 weeks and think how much your mind will change.
I'd throw my life savings on this kid never starting a hedge fund in his life. Nothing screams dedicated founder like being concerned with the WLB in IB! Do you think HF founders work 30 hours a week?
Also, based off this years recruiting cycle (most possible updated view of Ivey recruiting) there will be at most 6-8 non-diverse candidates who are going to end up in NYC. It's statistically likely your grand plan will end at that stage, you haven't even been accepted into the school yet which presents another barrier!
I've spoken to a lot of kids who think like you (no critical thought), I've seen maybe 1 get through recruiting successfully!
Wishing you the best!
If you had read more carefully you'd have realized that the only reason I'm concerned about IB WLB is that it would hamper my ability to digest more information and expand my knowledge on finance.
Of course, as everyone knows reading books > live deal experience and comprehensive modelling reps!
Modelling is just one aspect of the job. Books give you access to a very wide range of information.
I wasn't going to call you retarded but maybe that's what you need to hear. You're not Mike Burry, no serious investor is going to lend you two nickels to rub together. The holier than thou attitude isn't going to take you far man, quit watching sigma trillionaire grindset videos and do something to gain some worldly knowledge.
IB isn’t the only path to HF investing so idk who told you that. Going to college adds way more than shitty classes as others here have mentioned. Work a job before becoming a founder, or just run up your video editing business to six figures first and prove you have mettle. Then go to college with the money you save because nothing could be a better investment. Work in AM or S&T at RBC if you care about WLB and read up on investing. Intern at a Canadian pension fund (I did something similar as a freshman) and talk to PMs regularly interacting with HFs. Knowing how to invest isn’t enough, and when you grow up you’ll realize that.
Would I be able to successfully move from a Canadian S&T role to a NYC HF Analyst role?
It probably won’t be a direct step and as everyone else has been saying its a marathon not a sprint. There isn’t an established path to becoming a founder, let alone for HFs specifically
No offence but you seem incredibly arrogant, narcissistic, ungrateful and stubborn. First off, you are not nearly as smart as you think. A common trait among all of the greatest individuals in most industries is that they’re humble, open to learn and allow others to praise their intellect. If you believe that school is useless, you clearly are missing a crucial point. Regardless of whether the courses are a challenge or relevant to what you plan to pursue, it’s a time where you demonstrate to yourself, your acquaintances and potential employers that you have the ability to learn and can stick things out. We all wish we could do other things rather than go to school but employers need these academic institutions to assign a stamp of approval on your abilities. The work experience in IB, PE or other related industries is important because, again, it’s an endorsement of your skill set by both colleagues and institutions. Use the example of a credit score. Would you loan money to someone with zero history of honouring their debts or to someone who has a 10 year history of making timely payments? Moving on, school and your first jobs are times to learn from your fellow classmates and colleagues. These people offer differing perspectives and approaches to solving problems. You may also make great friends, connections and potential partners for your fund one day. And finally, you have the chance to go to school debt free. Sure you may take this for granted but for so many others that’s not the case. Use this wisely, get a 4.0, enter case competitions and stock pitches, make friends, connections and set yourself up for the career you want.
How would you not learn finance working 4 years at the best companies in the finance industry? What would u do with the free time from not doing ib and pe? Read books?
How would I learn anything substantial about investing if all I do is model on Excel? And yes, reading books seems to have a higher ROI.
Bro by the time books come out and you’ve read them, the material is decades stale and basically irrelevant to the real world. What are you even saying.
Everytime I see someone ask "is university even worth it", it tells me everything I need to know about their class and family background.
You don't yet know what you do not know.
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