Many altruists are interested in earning to give, but don’t know where to start. Finance is an attractive option, and with good reason. It offers very high expected earnings, opportunities to use a wide variety of skillsets, and a wide range of career possibilities with different combinations of competitiveness, demandingness and compensation. Finance can be a good fit for someone who is good at analytical thinking, works well with other people, and willing to work hard in a serious environment.
If that sounds like you, then congratulations! Even if you have literally no idea what you are doing, you have come to the right place. In this short guide we will go over the basic types of careers in finance, make some points about various aspects of the finance industry that aspiring altruists should think about, point you to further resources and send you on your way.
Link to full article which I wrote
Special thanks to Kit Harris, Alex Foster and Robert Wiblin for looking over the draft.
Depends on what you mean by "apply." If it's someone who just read this guide, has been studying finance for a few weeks and goes ahead to fill out the online app for the next internship program, there are much better ways for them to make use of their time, unless they're very well qualified on paper. These positions are insanely competitive and they mostly go to either people with extensive networks and contacts in the firm, or people from target schools.
If it's someone who has networked with people in the firm and has contacts/alumni who will push their resume forward, then they should apply, but at that point the person will have learned enough to surpass the bounds of this guide's advice.
True, but some people believe there is difficulty in terms of long term acceptance and fit in the industry. And small firms don't have affirmative action programs.
How many investment bankers do you know?
How many? If the number of EAs who tried it was small, then this isn't good evidence. It's not even clear to me that "being an EA" is a sufficiently descriptive reference class.
Either way, I should definitely not mention that fact, because that will give people biases and preconceptions. When they are learning about a career for the first time, they should start out with good, neutral sources, not secondhand rumors about people dropping out.
I have seen people talk about both buyside and sellside ER.
This is not my experience at all. I know many people who got jobs at top banks despite (seemingly) no connections or prestige. They are more meritocratic than you give them credit for (and the average applicant is worse!).
Yes, some people believe that. On the other hand, I've seen people b... (read more)