Is Finance basically a scam?
What's the point of Hedge Funds, Private Equity, etc where no one really knows what they're doing and generally perform below or at best at how much you'd make just dollar cost averaging into the s&p?
What is really even the point of majoring or studying Finance then?
>>1138799
Finance is just the means by which we try to allocate capital efficiently. It underpins essentially all human endeavors, which is why for example congress has so much power in the US.
>>1138805
>>>1138799 (OP) (You)
>Finance is just the means by which we try to allocate capital efficiently.
Wouldn't that be economics rather than Finance?
Overall the Finance industry seems like one big scam. Giving your money to a bunch of retards who don't know more than you but can draw fancy graphs and pretend to know a lot in order to pay abysmal fees seems retarded.
Why do people fall for this?
finance is subset of economics.
2 main fields: asset pricing and corporate finance.
finance people try to answer questions like 'how much interest should I charge you for a loan of size X?'
It's not trivial brah.
>>1138819
>how much interest should I charge you for a loan of size X?
Wow, truly one of the greatest problems facing our generation.
>>1138808
You now realize that economics is finance applied to a population, and that the names of majors don't fucking matter.
>>1138853
>Index funds outperform le finance professionals who take 10x+ higher fees
>I-its just b8 guys... If the price is higher that means it's better!
Finance has specific function in a working economy. That being said, finance is currently corrupted and isn't doing what it is supposed to. It is one big casino.
>>1138853
How exactly is it bait if it's true?
>>1138819
>finance people try to answer questions like 'how much interest should I charge you for a loan of size X?'
-0.1%?
>>1138799
read John Kay's 'Other People's Money'
>>1138799
This whole post is fucking retarded
People do really know what they are doing and there are plenty of hedge funds and private equity firms that beat the market consistently.
You are just uneducated and don't know your ass from a hole in the ground when it comes to finance
>>1139185
this. OP has read this board, thinking the info posted on it is mostly legit. in reality, this board is about 80% wrong information, 19% troll posts and 1% actual legit info.
>>1138799
>What's the point of Hedge Funds, Private Equity, etc where no one really knows what they're doing
What the fuck am i reading
>>1139185
Is that why statistics and actual math shows that no, these people generally have no idea what they're doing the vast majority don't beat the market?
Even the very best only beat it by a relatively slim margin.
>>1139263
>this. OP has read this board, thinking the info posted on it is mostly legit. in reality, this board is about 80% wrong information, 19%
troll posts and 1% actual legit info.
It's not this board you idiot. Besides if that's true that means the people in this thread are likely wrong.
There's a reason Vanguard is taking large amounts of money from Wallstreet scammers and is only expected to grow more and more.
>>1138799
>Is Finance basically a scam?
No.
>What's the point of Hedge Funds
Spreading risks.
>What's the point of Private Equity
Owning a share of the business.
>What is really even the point of majoring or studying Finance then?
Being able to analyse numbers. So you can back future business decisions up with actual data.
Someone forgot about the 2:20 rule
>>1139318
>>What is really even the point of majoring or studying Finance then?
>Being able to analyse numbers. So you can back future business decisions up with actual data.
Will I make any money doing this? I thought the whole financial system is becoming automated.
I am 18 graduating this year and thought corporate finance was the best way to go. Now biz says CS or mathematics is a better the degree. What the fuck biz
>>1139337
Nigga what a career does only has a little bit to do with career potential. The networking meme isn't noteworthy, but you're supposed to use the best internships you can get into.
>>1139348
same guy,
is it worth it trying to get internships in manhattan just working some low level shit job for a financial firm in manhattan?
would i learn anything or just be moving coffee or some shit around all day?
>>1139337
If you want $$$ or employability do engineering, computer science or maths
If youre interested in starting your own business do accounting
If you like finance but want to study something actually interesting do econ, if you think the wolf of wall street is real life do finance
apart from that anything other than med/science is unemployed for life tier
>>1139532
Yes, offer to do it for minimum wage and live like a Jew. It will be worth it in the long term and will be a huge resume booster if you move out of NYC as long as you are making sure to learn a lot.
>it's a scam because I don't understand it
This is why poor people stay poor. This is why poor people don't know how to manage risk or balance equity and debt. This is why poor people waste money on pointless shit. Finance teaches you how to manage money in an efficient manner, how to take risks, how to expand your capital, how to retain it, it's not a scam, it just requires thinking to understand.
>>1139826
You can learn that by reading john Bogle's books tho
>>1139831
There's a lot more to it though.
You can fix a few engine problems by reading the manual and looking online but to truly understand how to be a mechanic you have to work on a wide variety of cars.
>>1139837
I think he's more getting at the Finance industry-Wall Street thing more the anything.
He has a point too. When the majority of firms get beaten out by Vanguard it's pretty damning.
Look a little deeper into private equity op
