Anyone taking CFA exams this weekend?

[oddballstocks]

Best of luck.  I took the Level I six years ago this month.  The test was hard, but not impossible.  The best feeling was the one I had walking out of the place.  I was free, there was a tangible burden that was lifted once I was done with the test.

 

I failed Level II and never re-took it, but at times I think I wouldn't mind trying to conquer the beast again.  I've learned a lot since I failed L2 and I think I could probably pass L2 and L3 if I wanted.  Maybe someday..

 

I agree that the books are great.  A lot of efficient market stuff, but much of the market believes this, so it's good to know.

[Hielko]

I think the amount of efficient market stuff is reasonable, and it's certainly not being represented as being the only truth. And I actually think a lot of it it useful to know. Some just as background knowledge/being able to understand what other people are thinking, but often it also gives you tools on how to think about certain questions. You just have to realize what the limitations are.

 

Ps. Fwiw have finished lvl I and II, going for III next summer. Especially lvl II is pretty worthwhile with a big focus on accounting and valuation IMO.

[jschembs]

Good luck folks - I finished in 2006, and while I found much of the L3 focus geared towards wealth management, the L1 and L2 financial statement analysis and accounting was invaluable for me to form a baseline with which to build.

[Scudbucket]

Good luck.  They all suck, but you'll be glad when you're done.

[Palantir]

Yeah, I found them very valuable in learning the material, especially as someone who didn't major in finance. Most important thing - sleep as much as you can!

[meiroy]

I think the Institute did a tremendous job by creating the curriculum body of knowledge materials for candidates. I recall in the 90s you had to source your own textbooks, there were no finite list of learning outcomes (just read the textbooks and hope youve covered everything for exam), no free mock exams, no test preps, review classes. I would argue its easier to pass exams today. The high failure rate says more about the quality of candidates than the difficulty of the exams.

 

I'd argue that the failure is a bit of both material and candidates - more people taking it who are less prepared due to the popularity of the program and having companies pay it for you and because the complexity of material has increased.

 

I know a CFA grader with a PhD in Finance and the CFA designation who has commented that the course work and materially is substantially more difficult then it was when he took it. 

 

Harder material + a much larger audience of candidates = increasing failure  rate

 

 

Certainly glad the CFA has improved so much with their materials though. Even the last four years I've seen pretty large improvements.

 

+1 I recently had a look at the 2015 books compared to 2010 and there is a noticeable improvement. Personally I think the CFA material is [mostly] fantastic and very interesting -- the Schweser books skip a lot of interesting stuff.

[Rabbitisrich]

I think the Institute did a tremendous job by creating the curriculum body of knowledge materials for candidates. I recall in the 90s you had to source your own textbooks, there were no finite list of learning outcomes (just read the textbooks and hope youve covered everything for exam), no free mock exams, no test preps, review classes. I would argue its easier to pass exams today. The high failure rate says more about the quality of candidates than the difficulty of the exams.

 

I'd argue that the failure is a bit of both material and candidates - more people taking it who are less prepared due to the popularity of the program and having companies pay it for you and because the complexity of material has increased.

 

I know a CFA grader with a PhD in Finance and the CFA designation who has commented that the course work and materially is substantially more difficult then it was when he took it. 

 

Harder material + a much larger audience of candidates = increasing failure  rate

 

 

Certainly glad the CFA has improved so much with their materials though. Even the last four years I've seen pretty large improvements.

 

+1 I recently had a look at the 2015 books compared to 2010 and there is a noticeable improvement. Personally I think the CFA material is [mostly] fantastic and very interesting -- the Schweser books skip a lot of interesting stuff.

 

True, but Schweser is very good at teaching you to perform for the test. I had to retake Level 3 because I studied from the source books like I did for 1 and 2. As a result, I answered the writing portions in long essay type narratives, trying to consider possible complications, and framing the answer like CFP talking to a client. Not only did I bomb the writing portion, but I spent so much time that I barely finished the morning section in time. Schweser instructors help you with pacing, and with knowing what the graders want to see.

 

GIPS and Level 3 ethics? No knowledge there, just distractions and satanism! What monster still remembers their GIPS rules?

[meiroy]

I think the Institute did a tremendous job by creating the curriculum body of knowledge materials for candidates. I recall in the 90s you had to source your own textbooks, there were no finite list of learning outcomes (just read the textbooks and hope youve covered everything for exam), no free mock exams, no test preps, review classes. I would argue its easier to pass exams today. The high failure rate says more about the quality of candidates than the difficulty of the exams.

 

I'd argue that the failure is a bit of both material and candidates - more people taking it who are less prepared due to the popularity of the program and having companies pay it for you and because the complexity of material has increased.

 

I know a CFA grader with a PhD in Finance and the CFA designation who has commented that the course work and materially is substantially more difficult then it was when he took it. 

 

Harder material + a much larger audience of candidates = increasing failure  rate

 

 

Certainly glad the CFA has improved so much with their materials though. Even the last four years I've seen pretty large improvements.

 

+1 I recently had a look at the 2015 books compared to 2010 and there is a noticeable improvement. Personally I think the CFA material is [mostly] fantastic and very interesting -- the Schweser books skip a lot of interesting stuff.

 

True, but Schweser is very good at teaching you to perform for the test. I had to retake Level 3 because I studied from the source books like I did for 1 and 2. As a result, I answered the writing portions in long essay type narratives, trying to consider possible complications, and framing the answer like CFP talking to a client. Not only did I bomb the writing portion, but I spent so much time that I barely finished the morning section in time. Schweser instructors help you with pacing, and with knowing what the graders want to see.

 

GIPS and Level 3 ethics? No knowledge there, just distractions and satanism! What monster still remembers their GIPS rules?

 

Yes, you are right.

[ScottHall]

Diplomas and certifications aren't my thing, but I helped one of my coworkers with the level 1 test. She had failed the first time (barely), and the second time she really doubled down on studying and found that flash cards were a very helpful way of practicing any time you have a few spare moments.

 

She's smart, but she didn't really have much of a financial background (she worked as an editor for most of her career), so a lot of it was new material to her. If you've been a serious hobbyist on top of dedicating a lot of time, I imagine you'll have a pretty good shot.

 

CFA may be one of the great certification cons in America... fail a ton of people and make a fortune in test fees. A prestigious certification to have for the industry, so people want to get it. Great business model - wish it was a public company.

 

Yes flash cards have been helpful. I can see them being helpful for CFA especially for someone who does not have an investing or finance background. Flash cards help keep stuff in your mind. Even if you are not entirely sure what is going on you will eventually have your "Aha!" moments if you keep stuff floating around in your head long enough.

 

I am not one for diplomas or certifications either. I never finished High School nor do I have a degree. I have never taken any of the industry certifications in my tech/software career. The funny thing is I will probably never be able to use the CFA designation because I don't have the 4 years professional experience required and don't plan on changing careers to work professionally in finance or investing. I do manage accounts pro bono for family members but that is explicitly called out as non-qualifying in the requirements, which makes sense.

 

But by learning all the material and taking all the tests I am rounding out my knowledge base and getting a better understanding of what other competitors participating in the market might know or think about. I have found it mostly enjoyable. I also know that I am generally much more motivated when there are deadlines/milestones.

 

I understand your feelings about it being "one of the great certification cons". The other way to think about it is to compare it to getting an MBA. My understanding (which could be wrong) is that in the industry the CFA is viewed equivalent to a graduate program. The cost of going through the CFA program and the fact that you can do it entirely on self study makes it a compelling bargain. If you study with just the curriculum which is entirely possible and regiester early for the tests it is very inexpensive in comparison. Of course you won't have the prestige of an actual degree but thats what you pay colleges for. 

 

I was actually fairly impressed with the quality of the CFA books. I have picked up quite a few investment and finance textbooks at goodwill and find I like the CFA books better.

 

Just wanted to note that I'm not using con in the traditional sense of the word here... what I mean is the CFA has a very good business going for itself.

[Arden]

Good luck for those of you taking the test.

 

I'm considering it myself, but is it worth it to take the exams just for the knowledge?

 

Do I meet their requirement for "expirience" if I manage my and my family's and friend's investments for more than 4 years?

 

Is it possible to get a job in investing by having a CFA?

[Andy Dufresne]

I think the exams are worthwhile, especially Level II. The main advantage of the exams for most people is that there is a concrete goal and time-frame so one studies ...

 

As for getting a job - I think the CFA is good at marketing this but it conveniently ignores the difference between correlation and causation, preferring to market the latter.

[wescobrk]

I'm taking Level 2 in June. I haven't taken an exam since 2012 so hopefully I can brush off the rust.

I definitely don't want to take Level 2 again. I need to pass in June.

 

Any insights by people that passed Level 2 besides end of chapter cfai questions?

One person told me ace ethics, equity and accounting and you should pass.

[Palantir]

I'm taking Level 2 in June. I haven't taken an exam since 2012 so hopefully I can brush off the rust.

I definitely don't want to take Level 2 again. I need to pass in June.

 

Any insights by people that passed Level 2 besides end of chapter cfai questions?

One person told me ace ethics, equity and accounting and you should pass.

 

What helped me was the "brute force" method. I read and reread every single chapter about 3x. First read through was a general read, second time in excruciating detail, then a third time to go over anything I missed, then did EOC and moved on to the next chapter. But I am dense, and a slow learner, so more intelligent people can find easier ways of studying.

[Ham Hockers]

I'm taking Level 2 in June. I haven't taken an exam since 2012 so hopefully I can brush off the rust.

I definitely don't want to take Level 2 again. I need to pass in June.

 

Any insights by people that passed Level 2 besides end of chapter cfai questions?

One person told me ace ethics, equity and accounting and you should pass.

 

What helped me was the "brute force" method. I read and reread every single chapter about 3x. First read through was a general read, second time in excruciating detail, then a third time to go over anything I missed, then did EOC and moved on to the next chapter. But I am dense, and a slow learner, so more intelligent people can find easier ways of studying.

 

Did the same.

[compoundinglife]

Results are in. I passed Level 1.  :D  Thanks for the info, advice and support on this thread.

[Andy Dufresne]

Congratualtions! Rest and think carefully whether you want the strain of L2 in June - L1 isn't a walk in the park but L2 is a different beast!

 

PM me if you have questions and again - well done!

[Liberty]

Results are in. I passed Level 1.  :D  Thanks for the info, advice and support on this thread.

 

Congrats, happy for you!  :)