added by sari and · updated 19d ago
The Trouble with Optionality
- By emphasizing optionality, these students ignore the most important life lesson from finance: the pursuit of alpha. Alpha is the macho finance shorthand for an exemplary life. It is the excess return earned beyond the return required given risks assumed. It is finance nirvana.
from The Trouble with Optionality by Mihir Desai
sari added 2y ago
- The Yale undergraduate goes to work at McKinsey for two years, then comes to Harvard Business School, then graduates and goes to work Goldman Sachs and leaves after several years to work at Blackstone. Optionality abounds!
from The Trouble with Optionality by Mihir Desai
sari added 2y ago
- But what do we know about alpha? In short, it is very hard to attain in a sustainable way and the only path to alpha is hard work and a disciplined dedication to a core set of beliefs.
from The Trouble with Optionality by Mihir Desai
sari added 2y ago
- This individual has merely acquired stamps of approval and has acquired safety net upon safety net. These safety nets don’t end up enabling big risk-taking—individuals just become habitual acquirers of safety nets. The comfort of a high-paying job at a prestigious firm surrounded by smart people is simply too much to give up. When that happens, the... See more
from The Trouble with Optionality by Mihir Desai
sari added 2y ago
- For new graduates, working at a consulting firm creates optionality because of the broad exposures (to industries and companies) and skills these firms purportedly develop. Going to graduate school creates optionality by enabling more opportunities than a narrow professional trajectory can provide. Working at prestigious firms and developing social... See more
from The Trouble with Optionality by Mihir Desai
sari added 2y ago