Comments on: It’s Been Four Days and What Have You Learnt About the CFA http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm We dividend our ad money to you. Thu, 18 Mar 2010 16:35:58 -0700 http://wordpress.org/?v=2.9.1 hourly 1 By: MGW http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135420 MGW Sun, 14 Jun 2009 22:39:20 +0000 http://longorshortcapital.com/?p=1505#comment-135420 I should also mention that working before taking the tests makes you realize how pointless they are, therefore making you less likely to study and pass. If, by some miracle, you should pass a few levels, by the time you take level 3, you will have realized it is a complete waste of your time, but will still waste $1000 on it since you already spent $2000 on the first two levels. This is what is known as a sunk cost, and my taking sunk costs into account shows how thoroughly I've mastered the CFA curriculum. I should also mention that working before taking the tests makes you realize how pointless they are, therefore making you less likely to study and pass.

If, by some miracle, you should pass a few levels, by the time you take level 3, you will have realized it is a complete waste of your time, but will still waste $1000 on it since you already spent $2000 on the first two levels.

This is what is known as a sunk cost, and my taking sunk costs into account shows how thoroughly I’ve mastered the CFA curriculum.

]]> By: Anal_yst http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135410 Anal_yst Fri, 12 Jun 2009 20:43:29 +0000 http://longorshortcapital.com/?p=1505#comment-135410 @MGW ftw! Honestly, just going over the cfa "curriculum" I couldn't help but notice how much I've forgotten/don't care to remember @MGW ftw! Honestly, just going over the cfa “curriculum” I couldn’t help but notice how much I’ve forgotten/don’t care to remember

]]> By: Johnny Debacle http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135408 Johnny Debacle Fri, 12 Jun 2009 17:21:35 +0000 http://longorshortcapital.com/?p=1505#comment-135408 PILE ON "entirely acceptable alternative form of the simple past and past participle earned. <strong>Still considered to be incorrect by many</strong>, who are largely unaware of the historical development of the English language." Who is basking in whose ignorance now? KNOWLEDGE IS POWER. PILE ON

“entirely acceptable alternative form of the simple past and past participle earned. Still considered to be incorrect by many, who are largely unaware of the historical development of the English language.”

Who is basking in whose ignorance now? KNOWLEDGE IS POWER.

]]> By: Johnny Debacle http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135407 Johnny Debacle Fri, 12 Jun 2009 17:20:30 +0000 http://longorshortcapital.com/?p=1505#comment-135407 http://en.wiktionary.org/wiki/earnt IN YOUR FACE CHICKEN http://en.wiktionary.org/wiki/earnt
IN YOUR FACE CHICKEN

]]> By: the inscrutable chicken http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135406 the inscrutable chicken Fri, 12 Jun 2009 17:11:56 +0000 http://longorshortcapital.com/?p=1505#comment-135406 it's "earned", not "earnt" - not that it will have any value in the real world for the next 5 year. it’s “earned”, not “earnt” – not that it will have any value in the real world for the next 5 year.

]]> By: MGW http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135403 MGW Fri, 12 Jun 2009 14:40:21 +0000 http://longorshortcapital.com/?p=1505#comment-135403 Anal_yst: Assuming that your undergrad major was something along the lines of Accounting or Finance, then yes, it makes sense to start as soon as possible after undergrad. Very few things on the test are actually used in most finance jobs (at least in my job), so working before taking the tests accomplishes nothing other than helping you forget things. Anal_yst: Assuming that your undergrad major was something along the lines of Accounting or Finance, then yes, it makes sense to start as soon as possible after undergrad. Very few things on the test are actually used in most finance jobs (at least in my job), so working before taking the tests accomplishes nothing other than helping you forget things.

]]> By: Anal_yst http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135402 Anal_yst Fri, 12 Jun 2009 03:32:03 +0000 http://longorshortcapital.com/?p=1505#comment-135402 I haven't taken the CFA tests, but from what I can tell they'd be easiest to start asap after undergrad (assuming Finance undergrad), anyone? I haven’t taken the CFA tests, but from what I can tell they’d be easiest to start asap after undergrad (assuming Finance undergrad), anyone?

]]> By: Pleb http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135400 Pleb Thu, 11 Jun 2009 18:27:31 +0000 http://longorshortcapital.com/?p=1505#comment-135400 >>>Pleb, quit your whining, no lawyer needs a soul anyways Yeah, we don't need 7 Series BMW's either, but we damn sure like to collect 'em. Now about last month's billing statement... >>>Pleb, quit your whining, no lawyer needs a soul anyways

Yeah, we don’t need 7 Series BMW’s either, but we damn sure like to collect ‘em. Now about last month’s billing statement…

]]> By: Johnny Debacle http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135399 Johnny Debacle Thu, 11 Jun 2009 17:42:00 +0000 http://longorshortcapital.com/?p=1505#comment-135399 Not believable considering you need 4 years of work experience to be a CFA...And what does trashing mean in this context? Not believable considering you need 4 years of work experience to be a CFA…And what does trashing mean in this context?

]]> By: maggie http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135398 maggie Thu, 11 Jun 2009 17:38:36 +0000 http://longorshortcapital.com/?p=1505#comment-135398 BTW, I forgot: my next door neighbour's son who works in the Royal Bank of Canada as wealth planner or somesuch TOLD me this: there are CFAs working as tellers in his bank. BTW, I forgot: my next door neighbour’s son who works in the Royal Bank of Canada as wealth planner or somesuch TOLD me this: there are CFAs working as tellers in his bank.

]]> By: maggie http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135397 maggie Thu, 11 Jun 2009 17:32:38 +0000 http://longorshortcapital.com/?p=1505#comment-135397 In Hong Kong at least, fresh graduates are trashing CFA exams and thousands of them take it each year. Ditto in China. It has become as unremarkable as wearing a business suit to work. In Hong Kong at least, fresh graduates are trashing CFA exams and thousands of them take it each year. Ditto in China. It has become as unremarkable as wearing a business suit to work.

]]> By: Johnny Debacle http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135392 Johnny Debacle Thu, 11 Jun 2009 15:22:06 +0000 http://longorshortcapital.com/?p=1505#comment-135392 "the behavioral chapters on the implicit uselessness of forecasting, which preceded the lengthy chapters on forecasting" This was my favorite part. The entire behavioral part was amazing in the context of studying, and when taken together, the behavioral stuff would lead to a paralytic investor, which is itself some sort of behavorial bias. Pleb, quit your whining, no lawyer needs a soul anyways. “the behavioral chapters on the implicit uselessness of forecasting, which preceded the lengthy chapters on forecasting”

This was my favorite part. The entire behavioral part was amazing in the context of studying, and when taken together, the behavioral stuff would lead to a paralytic investor, which is itself some sort of behavorial bias.

Pleb, quit your whining, no lawyer needs a soul anyways.

]]> By: Pleb http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135390 Pleb Thu, 11 Jun 2009 15:14:54 +0000 http://longorshortcapital.com/?p=1505#comment-135390 Yeah, well, at least they don't steal your soul like the NYS Bar Examiners did with mine. I still remember them handing it to a senior partner at my firm, who started chewing on it immediately. It was pretty tough but he ate the whole thing before I'd been at the firm for two months. Oh well. At least there was nothing left for the first wife's divorce attorney to rip out. Yeah, well, at least they don’t steal your soul like the NYS Bar Examiners did with mine. I still remember them handing it to a senior partner at my firm, who started chewing on it immediately. It was pretty tough but he ate the whole thing before I’d been at the firm for two months.

Oh well. At least there was nothing left for the first wife’s divorce attorney to rip out.

]]> By: TB http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135389 TB Thu, 11 Jun 2009 14:35:57 +0000 http://longorshortcapital.com/?p=1505#comment-135389 I think it was a great privlege to take the exam this year, when the CFA itself had realised that 90%+ of the content is entirely useless (except in a "what are the real suckers thinking right now" sense). My favourite parts from the Level III course this year were: standard deviation not being a suitable risk measure for emerging markets (because they alone are not normally distributed); the market outlook (developed in mid-2007) where a return of 18% in the next year was "not unrealistic", but a return of -50% was "highly unlikely" and this case should be ignored; any mention of banks, which was generally followed by references to how safe and defensive they are; the entire chapter on the Brics, where it just extrapolated their growth in 2000-2006 for the next 50 years; the behavioral chapters on the implicit uselessness of forecasting, which preceeded the lengthy chapters on forecasting the chapter on the impact of pension schemes on companies (bizzarely written like a speculative academic paper), which took the simple idea "more risk in the pension scheme increases the risk of the company" and turned it into a multi-page formula-ridden journey through a wonderland where people think the various forms of beta mean something. Memories, wispy watercolored memories... I think it was a great privlege to take the exam this year, when the CFA itself had realised that 90%+ of the content is entirely useless (except in a “what are the real suckers thinking right now” sense).

My favourite parts from the Level III course this year were:

standard deviation not being a suitable risk measure for emerging markets (because they alone are not normally distributed);

the market outlook (developed in mid-2007) where a return of 18% in the next year was “not unrealistic”, but a return of -50% was “highly unlikely” and this case should be ignored;

any mention of banks, which was generally followed by references to how safe and defensive they are;

the entire chapter on the Brics, where it just extrapolated their growth in 2000-2006 for the next 50 years;

the behavioral chapters on the implicit uselessness of forecasting, which preceeded the lengthy chapters on forecasting

the chapter on the impact of pension schemes on companies (bizzarely written like a speculative academic paper), which took the simple idea “more risk in the pension scheme increases the risk of the company” and turned it into a multi-page formula-ridden journey through a wonderland where people think the various forms of beta mean something.

Memories, wispy watercolored memories…

]]> By: Dash22 http://longorshortcapital.com/its-been-four-days-and-what-have-you-learnt.htm/comment-page-1#comment-135387 Dash22 Thu, 11 Jun 2009 05:30:27 +0000 http://longorshortcapital.com/?p=1505#comment-135387