In 1980s, it was a trend in Wall Street to hire people with non-finance background but excel at maths and physics. Most of you watching the movie “Margin call” might remember the smart guy who figured out mistakes of the valuation model. He was educated to be a missile engineer before coming to Wall Street. Yeah, I agree, not a bit relates to finance. Here is the reason. The recruitment trend evoked from the triumph of Efficient Markets Theory. In case you have no idea about this term, check out my review of Irrational Exuberance. Briefly, economists and investors at that time strongly believed that they could build models to measure asset prices precisely. These models were highly complex and needed to be controlled by quantitative people. As a result, people with background on maths and physics satisfied this requirement. Given the advent of derivatives instruments in the late 1980s, needs on quants have been stronger.
Source: Yen Tran
Twenty five stories were told by twenty five experts of the industry whose influences are confirmed by the amount of assets they are managing. I am not telling you that their talents corroborate their opinions but I am sure that you will enjoy their life stories. Who don’t like stories? Here and there in the book, the writers made clear to us about the draught of their studying and working paths as a quant. “Nobody said it was easy” as a line in Scientist by Coldplay. Here and there you catch a scene of an undergraduate from an Ivy-League school pondering about life’s goal and having no idea of the next move in his life. Even the smart person has no preparation for such a thing like occupation. As a young person, I believe we all share the same concern. “Fate takes a hand in every person’s career” a saying by Mark Anson – a fund manager. He is one of twenty five elites mentioned in the book. His past life confirmed the effect of fate’s choice into human’s life. Whether you like it or not, this idea was shared by many other elites in the book. “I did not plan to become a quant. I don’t think any of us did”, an experience from Bjorn Flesaker – Senior Quant from Bloomberg L.P. So, be ready for any instant and significant change in your path career. You and I, at our young age, we have no idea of how our lives might become. Under this highly sad uncertainty, we can employ a wise strategy which you have been told uncountable times: enjoy the moment.
If you ask me a reason for digging into this book regardless of projects moaning to be accomplished, I would say: you read this book and learn from elder business persons’ experience. Sooner or later, you step on their paths. They had their own plights and made moves sometimes in the dark. Reading their situations and reasons for their destinations, at least, we have a clearer view on our current position. The downside of reading this book? I have to warn you about the slight depression you may get. Twenty five life stories of twenty five top managers of Wall Street are not something mediocre. Their paths were virtually extraordinary from the very beginning. So, don’t expect it fits your shoe but a pushup to yourselves to find a motive for trying harder on everyday working.
Yen Tran
Pragmatic Financial Mates 