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DSPGuy
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Joined: June 5th, 2008, 10:06 am

Wall Street needs to hire some 'C' students

September 12th, 2008, 3:54 pm

Recruiter "Well I have an excellant opportunity, what's your GPA?"Candidate "3.1"Recruiter "Hmmm, well they like to hire people with 3.6 and better."Candidate "Oh, is that the company that lost 3 billion last quarter?"Recruiter "No, its the one trying to sell itself to a North Africian sovereign fund."Candidate "Boy, those 4.0 GPA, 1600 SAT guys really know their stuff!"Recruiter "Oh yeah, many of them compete at the Math Olympiads!"Candidate "Well maybe if I get a PHD I can learn how to lose many like that!"Recruiter "Make sure its from an IVY league school, most firms prefer to be bankrupted by someone with marquee value!"
 
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KackToodles
Posts: 4100
Joined: August 28th, 2005, 10:46 pm

Wall Street needs to hire some 'C' students

September 12th, 2008, 4:08 pm

the only reason you don't see any C-student firms going bankrupt now is because they already went out of business yesteryear.
 
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TraderJoe
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Wall Street needs to hire some 'C' students

September 12th, 2008, 4:29 pm

Excellent.Here's another one:
Last edited by TraderJoe on September 11th, 2008, 10:00 pm, edited 1 time in total.
 
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twofish
Posts: 4944
Joined: February 18th, 2005, 6:51 pm

Wall Street needs to hire some 'C' students

September 12th, 2008, 4:30 pm

The conversation with the recruiter is quite accurate, and is precisely the reason that you should favor companies that don't care much about GPA. It would be interesting to see the correlation between the companies that care a lot about "brand name" and "GPA" and how well they are doing in the current crisis. I suspect that there is a strong inverse correlation which is not an accident.Companies that don't dig deep to find out what their candidates really are like are likely not dig deep about the securities they hold or their model assumptions. Someone who is going to automatically hire someone with a 4.0 GPA without thinking about it, is more likely to buy a AAA-rated CDO without thinking about it. Conversely, someone that does their homework and finds value in people with 2.0-3.0 GPA's are also likely to find value in distressed bonds and bankrupt companies.
Last edited by twofish on September 11th, 2008, 10:00 pm, edited 1 time in total.
 
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TraderJoe
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Wall Street needs to hire some 'C' students

September 12th, 2008, 6:10 pm

QuoteOriginally posted by: twofishThe conversation with the recruiter is quite accurate, and is precisely the reason that you should favor companies that don't care much about GPA. It would be interesting to see the correlation between the companies that care a lot about "brand name" and "GPA" and how well they are doing in the current crisis. I suspect that there is a strong inverse correlation which is not an accident.Companies that don't dig deep to find out what their candidates really are like are likely not dig deep about the securities they hold or their model assumptions. Someone who is going to automatically hire someone with a 4.0 GPA without thinking about it, is more likely to buy a AAA-rated CDO without thinking about it. Conversely, someone that does their homework and finds value in people with 2.0-3.0 GPA's are also likely to find value in distressed bonds and bankrupt companies.twofish, you make me laff.
 
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farmer
Posts: 13462
Joined: December 16th, 2002, 7:09 am

Wall Street needs to hire some 'C' students

September 12th, 2008, 10:06 pm

QuoteOriginally posted by: DSPGuymost firms prefer to be bankruptedMost people aren't smart or hardworking enough to make millions year after year. But some people are smart enough to earn commissions and bonuses while they blow out the stockholders for a year. Better to do it one year than never.
 
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mike06
Posts: 21
Joined: April 28th, 2008, 2:02 am

Wall Street needs to hire some 'C' students

September 13th, 2008, 2:23 am

One of ASU top Finance students worked for Lehman Brothers. Now, it is looking for buyers............Based on what two fish said, it is true in this case
 
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weiser
Posts: 6
Joined: April 8th, 2008, 3:18 am

Wall Street needs to hire some 'C' students

September 13th, 2008, 4:08 pm

If hiring C students was more profitable, someone would already be doing it.
 
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KackToodles
Posts: 4100
Joined: August 28th, 2005, 10:46 pm

Wall Street needs to hire some 'C' students

September 13th, 2008, 10:48 pm

QuoteOriginally posted by: weiserIf hiring C students was more profitable, someone would already be doing it. hiring C students IS profitable; Many of them are in the sales force; some of them become President, both of the company or the country (especially the USA). C students are excellent candidates for most jobs; they just don't make good quants or IT guys. You should not be surprised if many of the top earners in your company (mostly the sales people) were C students. But the developer dude slinging code 10 hours/day was probably an A student.
Last edited by KackToodles on September 13th, 2008, 10:00 pm, edited 1 time in total.
 
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ChicagoGuy
Posts: 455
Joined: April 13th, 2007, 1:45 am

Wall Street needs to hire some 'C' students

September 13th, 2008, 11:10 pm

Buffet specifically doesnt care about the educational backgroung of people he has invested money with. That should tell you a lot, after all he is one of the richest in the world. A's are overrated, B's get you places, and Cs are fun.
 
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KackToodles
Posts: 4100
Joined: August 28th, 2005, 10:46 pm

Wall Street needs to hire some 'C' students

September 14th, 2008, 12:31 am

QuoteOriginally posted by: ChicagoGuyBuffet specifically doesnt care about the educational backgroung of people he has invested money with. that's because he only invests with proven, experienced managers -- not people straight out of school. he wlll consider you only after you have a track record of work success. He cares a LOT about your proven track record even though your formal training is irrelevant.
 
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Maelo
Posts: 1243
Joined: July 28th, 2002, 3:17 am

Wall Street needs to hire some 'C' students

September 14th, 2008, 1:11 pm

QuoteOriginally posted by: weiserIf hiring C students was more profitable, someone would already be doing it.ECSH??? (Efficient C-Student Hypohotesis???)
 
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Maelo
Posts: 1243
Joined: July 28th, 2002, 3:17 am

Wall Street needs to hire some 'C' students

September 14th, 2008, 1:14 pm

QuoteOriginally posted by: KackToodlesQuoteOriginally posted by: weiserIf hiring C students was more profitable, someone would already be doing it. hiring C students IS profitable; Many of them are in the sales force; some of them become President, both of the company or the country (especially the USA). C students are excellent candidates for most jobs; they just don't make good quants or IT guys. You should not be surprised if many of the top earners in your company (mostly the sales people) were C students. But the developer dude slinging code 10 hours/day was probably an A student. "Probably" is the key...the best practical engineer I ever hired..was a B minus student...but I do not really think all quants are that good...and gardes even though important...are not the only thing..
 
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farmer
Posts: 13462
Joined: December 16th, 2002, 7:09 am

Wall Street needs to hire some 'C' students

September 14th, 2008, 4:24 pm

If I had to choose between an employee making up his own option-pricing model, or using a proven model, I would choose the proven model. So basically I want someone who is good at reciting stuff. The way you get an A in class is basically by reciting stuff.There may be someone out there who can innovate a better model. But there are 99 retards who look just like him, and no way to tell the difference except after 99 blowouts.
 
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Maelo
Posts: 1243
Joined: July 28th, 2002, 3:17 am

Wall Street needs to hire some 'C' students

September 14th, 2008, 7:48 pm

So farmer...creativity is out???I don't think so....A students are not more creative than others (or less for that matter)..in some tests...you actually need to figure out..how to apply the model you learned in class to the new situation presented...that's true in physics, engineering, law...and many other fields...so A students might be more creative ...or not??In any case,,,many things are not measured by grades..personality, etc...and in many projects...that's what's count..tell that to Disney..for example...
Last edited by Maelo on September 13th, 2008, 10:00 pm, edited 1 time in total.
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