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The original discussion was about expected value, not maximum value. I continue to believe that the expected value of finance exceeds that of startups, but the
by pge 16y ago
The original discussion was about expected value, not maximum value. I continue to believe that the expected value of finance exceeds that of startups, but the answer to that is not in the Forbes 400, which shows those who are at the extreme.
To make an analogy, the guy that just won the Powerball lottery is far richer than all the doctors in his state, but that doesnt mean the expected value of playing the lottery is higher than being a doctor.
Salaries in finance tend to start at close to $100K for first year employees coming out of undergrad. A solid performer can get up to $300K/year in 5 years.
The difference between this kind of career path and startup is that the finance employee has much more control over his compensation - if you're smart and willing to work hard, the salary rises in a predictable fashion.
An entrepreneur can make a lot more if he is successful, but many of the factors that determine success are out his control.
The entrepreneurs win much bigger than financiers (so the entrepreneuers should be much better represented in the Forbes 400), but the expected value of being a financier is greater (no data available to prove that).