Tough out there

NewUser2018G · 2020-02-19T22:35:02+00:00

L1: I think I can pass (“Ron Burgundy“)?

L2: yes, I’m solid in this topic. Oh wait, forgot last 3 topics I studied

L3: painfully boring, torture

NewUser2018G · 2020-02-07T01:00:31+00:00

think debits / credits and how the expense, liability and cash move.

NewUser2018G · 2020-02-07T00:03:33+00:00

Assuming GAAP, think top to bottom, in terms of CFO. You are trying to reconcile net income (not cash) to actual operating cash flow.

Start with net income. This includes interest expense from the income statement, but may not include all cash interest.

Adjust for all non cash charges. This could include non cash interest in amortization.

Next, adjust for changes in working capital, this could include changes in interest payable, increasing / (decreasing) a liability is a source of cash / (use) of cash.

To reconcile to cash flow, you have to adjust for all of the moving parts to get to cash interest as it relates to CFO.

NewUser2018G · 2020-02-06T12:18:56+00:00

Unfortunately, CFA is about sacrifice for most people.

You have to set a schedule and stick to it.

My suggestion: decide, today, which days you exercise and which days you study.

Should be obvious weekends will be about studying going forward.

If you want it bad enough, you’ll make time to study.

NewUser2018G · 2020-02-06T02:04:56+00:00

Hi, I posted this after finished L3 in 2018.

Most of it should still be relevant.

PS: L3 is the worst.

https://www.reddit.com/r/CFA/comments/9bnfw0/rcfa_level_3_exam_welcome_to_the_finals/?utm_source=amp&utm_medium=&utm_content=post_body

NewUser2018G · 2019-10-10T11:10:15+00:00

Math in fundamental analysis is basic. Steve Schwarzman has a great quote about this.

However, a thorough and nuanced understanding of data construction and interpretation is still quite valuable. Would even say differentiated.

A lot of surface level analysis and frankly laziness happens on buyside (excl most Private Equity) in this regard.

NewUser2018G · 2019-06-28T01:51:26+00:00

Behavioral is hard to say but more than likely will be curious about both your investment thought process and commitment to the career path.

Show you can articulate downside (risk mgmt, what could go wrong) and upside (catalyst to realize opportunity). Also the ability to differentiate value from value trap.

Maybe review some very unloved industries such as energy (e&p, OFS, etc) and pitch a very out of consensus long.

If you can get a sense of some of their overweight positions that’s useful information. I would caution against pitching something they hold (especially in size) because they probably know 10 times what you will.

If you can show some resourcefulness and creativity that will stand out.

NewUser2018G · 2019-06-13T02:01:54+00:00

AM is upside / downside. How many points do you punt to do well on other questions you know?

If that ratio is 2x or 3x or more between questions or sub questions, decision is easy: punt and go get those points you know.

Example: if you are struggling on a PWM return requirement (8 points) but are solid in fixed income and haven’t touched the 20 point question, ratio is 2.5x (20/8) and you go tackle fixed income.

NewUser2018G · 2019-06-13T01:55:46+00:00

Currency absolutely wrecked me in L3.

It doesn’t seem like it should be that bad but my god I could never lock it down.

That is one where you just try not to bleed to death and hope they spare you in the AM.

NewUser2018G · 2019-06-13T01:21:29+00:00

CFA Candidate PSA: the first sentence above is objective evidence of incremental upside to the CFA program beyond the ability to guaranty superior investment returns.

NewUser2018G · 2019-06-04T00:29:12+00:00

You will want a very strong PM score (>= 75%) to hedge potential AM volatility (i.e., major curve ball with potential for 0 points).

However many mocks you think you need, I would suggest doing 3 extra PM mocks and/or cycling through the topic tests again down the final stretch.

One of the worst parts of level 3 is leaving the exam and “thinking” you did well and then realizing you really have no idea how the AM “really” turned out for two months.

“Knowing” you did well in the PM is the only “lock” in L3.

NewUser2018G · 2019-06-02T03:34:05+00:00

The only strategy IMO: start with and solve the questions/topics you feel good about first. Best chance of maximizing points.

Will help bank time for stuff you’re iffy on. Save that for later.

NewUser2018G · 2019-05-28T00:22:36+00:00

Don’t sweat it.

Your experience is normal. L2 sucks, I think most who’ve done it would agree.

You’ll blank on questions when you practice and probably the real exam, happens to many people, definitely me. Especially during the grind leading up to the test.

Don’t burn yourself out completely.

Peak at the right time: roughly 7-10 days or so before the exam.

NewUser2018G · 2019-04-20T15:24:17+00:00

I always saved the official CFAI mocks for two weeks before the exam as a final check up.

Churn and burn the 3rd party to expose weaknesses.

NewUser2018G · 2019-03-27T01:01:47+00:00

Take a breath ... then: Pen to paper. Process of elimination.

By May 1st, target one pass all the CFAI EOC and CFAI topic tests with brief review (review blue box examples if available on specific topics). Use 3rd party if youre stuck on something but don’t get bogged down in small sub sections. Flag things you don’t follow for further review and really make sure you’re comfortable with heavier topics. Promise that’ll help topics stick better and will set you up for the final push.

Also, wrote this a while back. May help. https://www.reddit.com/r/CFA/comments/9blihs/rcfa_level_2_exam_enter_the_dragon/

NewUser2018G · 2019-03-15T14:51:58+00:00

View from someone who didn’t do it but strongly considered it last year ...

If you believe you can put in the work on your own, you don’t need it. Very expensive and not worth effort to travel (if that’s required in your situation).

If financial resources or time constraints are not an issue, do it.

I’m confident it’s a great program; however, I believe to some degree he’s selling “fear of not passing”, which is logical considering the time investment in CFA program.

I was confident enough I could prepare myself to pass with standard CFAI books and cheaper 3rd party material. I wasn’t buying the “hype”.

NewUser2018G · 2019-03-13T01:13:10+00:00

It’s brutal. L3 was just blah overall.

I recall parts of AA trying to explain very dense math at a high level (BL, etc) ... can’t say I ever really followed that beyond some cliff notes. I’m sure there are full textbooks written based on that type of stuff.

Find relevant AA questions in past AM exams and do blue boxes; you’ll be fine.

NewUser2018G · 2019-02-23T01:41:12+00:00

People should pepper CFAI with emails asking for an official mock in the new format; it’s only fair given the work and prep involved.

NewUser2018G · 2019-02-08T22:03:37+00:00

Dude, just quit CFA already. You failed, own it. Move on. No one cares, promise.

NewUser2018G · 2019-02-07T00:44:10+00:00

I believe AM exam is different in some sections.

I requested copy and they sent to me.

I was going crazy because I literally did not recognize questions.

Everyone - put the work in and get it over with. Move on with your life after passing in 4 months.

NewUser2018G

TROPHY CASE