help me answer this question: why do you want to get into investment banking?

[dr150]

Originally posted by: zimu
cause i want no private life, and want to work 100hr weeks

 

[z0mb13]

Originally posted by: Hector13

Originally posted by: Doggiedog

Originally posted by: z0mb13
This is what I have so far, comments are appreciated:

I wish to get into the investment banking field because I have an interest in the capital markets and learning the mechanics of the market is something I have always dreamed of doing.
I enjoy analyzing the market and make decisions based from what I analyze. Moreover, I wish to be able to provide financial advice to other investors, identifying which security or portfolio to pursue, which in the end will create a greater wealth for all.

An investment banker does not make decisions on what stocks to buy. You really need to brush up on your Wall Street knowledge if you want a job there.

An investment banker is a salesperson/financial analyst/handholder. Their job is to secure deals whether they are IPOs, secondaries, private placements, M&A. They have to go out and pitch their ware (ie their co) to prospective clients. They also have to do alot of detailed financial analysis to try to come to an acceptable valuation for the company or industries involved. They also have to help out the execs of those companies and kiss their butts.

I agree fully with what Doggiedog said... are you sure you are applying for an ibanking job or just at an ibank? There are plenty of other positions at ibanks other than being an ibanker (and some of these positions do what you claim to be interested in).

I am applying for a investment banking intern position...

 

[Hector13]

Originally posted by: z0mb13

I am applying for a investment banking intern position...

okay... though based on your reasons for wanting to be an ibanker, you may want to consider a different field in finance. Ibanking is good and all, but there are better paying (and, depending on the person, more "interesting") jobs in finance available.

 

[zillafurby]

Originally posted by: z0mb13

Originally posted by: Hector13

Originally posted by: Doggiedog

Originally posted by: z0mb13
This is what I have so far, comments are appreciated:

I wish to get into the investment banking field because I have an interest in the capital markets and learning the mechanics of the market is something I have always dreamed of doing.
I enjoy analyzing the market and make decisions based from what I analyze. Moreover, I wish to be able to provide financial advice to other investors, identifying which security or portfolio to pursue, which in the end will create a greater wealth for all.

An investment banker does not make decisions on what stocks to buy. You really need to brush up on your Wall Street knowledge if you want a job there.

An investment banker is a salesperson/financial analyst/handholder. Their job is to secure deals whether they are IPOs, secondaries, private placements, M&A. They have to go out and pitch their ware (ie their co) to prospective clients. They also have to do alot of detailed financial analysis to try to come to an acceptable valuation for the company or industries involved. They also have to help out the execs of those companies and kiss their butts.

I agree fully with what Doggiedog said... are you sure you are applying for an ibanking job or just at an ibank? There are plenty of other positions at ibanks other than being an ibanker (and some of these positions do what you claim to be interested in).

I am applying for a investment banking intern position...

no offense, but you obviously dont have any financial knowledge, so what use would you be during a summer to an ib team? maybe somewhere else in the bank, say sales and trading or something. but you couldnt do modeling as easy as a fin major.

investment banker earn their keep from take over advice, and origination of capital for firms. in origination they act as an advice and sales contacts bridge to manangement, and anysis and credibility bridge to institutional investors, so that firms can access capital at the right price in the market. also most stock issues need a sponsor, you cant DIY-it on most major markets.

in takeover advice, they have detailed knowledge of industies globally in the major BB firms, and across america and say europe in mid market players. these people work with management to identify the financial savings and strategic advantages from a merger, similar to consutants, and also provide a market analysis to pitch it to investors.

 

[cchen]

are you a junior? because all/most ofthe summer analyst ibanking positions for juniors got filled a month or two ago.....

 

[Shockwave]

You gotta be kiddin me.... I wouldnt touch this with a 10 foot pole.....

We've asked insiders at leading investment banks to offer us insight into a day in the life of their position. Here's a look at a day of an associate I-banker at Goldman Sachs.
8:15 Arrive at 85 Broad Street. (Show Goldman ID card to get past the surly elevator guards).

8:25 Arrive on 17th Floor. Use "blue card" to get past floor lobby. ("Don't ever forget your blue card. Goldman has tight security and you won't be able to get around the building all day.")

8:45 Pick up work from Word Processing, review it, make changes.

9:00 Check voice mail, return phone calls.

9:30 Eat breakfast; read The Wall Street Journal. ("But don't let a supervisor see you with your paper sprawled across your desk.")

10:00 Prepare pitchbooks, discuss analysis with members of deal team.

12:00 Conference call with members of IPO team, including lawyers and client.

1:00 Eat lunch at desk. ("The Wall Street McDonald's delivers, but it's the most expensive McDonald's in New York City; Goldman's cafeteria is cheaper, but you have to endure the shop talk.")

2:00 Work on restructuring case studies; make several document requests from Goldman library.

3:00 Start to prepare analysis; order additional data from DRG (Data Resources Group).

5:00 Check in with vice presidents and heads of deal teams on status of work.

6:00 Go to gym for an abbreviated workout.

6:45 Dinner. ("Dinner is free in the IBD cafeteria, but avoid it. Wall Street has pretty limited food options, so for a quick meal it's the Indian place across the street that's open 24 hours.")

8:00 Meet with VP again. ("You'll probably get more work thrown at you before he leaves.")

9:45 Try to make FedEx cutoff. Drop off pitchbook to Document Processing on 20th Floor. ("You have to call ahead and warn them if you have a last-minute job or you're screwed.")

10:00 Order in food again. ("It's unlikely that there will be any room left in your meal allowance -- but we usually order in a group and add extra names to bypass the limit.")

11:00 Leave for home. ("Call for a car service. Enjoy your nightly meal on wheels' on the way home.")

 

[Hector13]

Originally posted by: Shockwave
You gotta be kiddin me.... I wouldnt touch this with a 10 foot pole.....

to clarify a couple points... as an analyst, your hours will not be like the above. You will most definitely not be getting in before 9 (I don't think most associates would get in that early either), and you will definitely NOT leave by 11ish. There will be many days where you stay past midnight. Plus, there will be many weekends involved as well.

But then again, there will be many days when you travel for "road shows" and whatnot (again, working 16 hours or so a day).

Also, at the end of the year, you will need to figure out how to spend you 6 figure bonus... so that could be a problem as well.

 

[Shockwave]

Originally posted by: Hector13

Originally posted by: Shockwave
You gotta be kiddin me.... I wouldnt touch this with a 10 foot pole.....

to clarify a couple points... as an analyst, your hours will not be like the above. You will most definitely not be getting in before 9 (I don't think most associates would get in that early either), and you will definitely NOT leave by 11ish. There will be many days where you stay past midnight. Plus, there will be many weekends involved as well.

But then again, there will be many days when you travel for "road shows" and whatnot (again, working 16 hours or so a day).

Also, at the end of the year, you will need to figure out how to spend you 6 figure bonus... so that could be a problem as well.

5 figure BONUS? Your kiddin right? Whats kind of salary? And most importantly, where do I sign up?!

 

[Hector13]

Originally posted by: Shockwave
6:45 Dinner. ("Dinner is free in the IBD cafeteria, but avoid it. Wall Street has pretty limited food options, so for a quick meal it's the Indian place across the street that's open 24 hours.")

also, food options are definitely NOT limited downtown... I don't know when the article you are quoting is from, but there are plenty of places willing to deliver food for the $25-30 per person that you will have for dinner (plus, as you quoted, you can write down as many names as you'd like to get more dinner).

And sadly, going to the gym during work is a very rare occurence.

 

[Hector13]

Originally posted by: Shockwave
5 figure BONUS? Your kiddin right? Whats kind of salary? And most importantly, where do I sign up?!

5 figure bonus for the first amd second year analyst. Beyond that (and for associates) it will be 6 figures. Of course, all of this depends on how well your group does and where you work. Some firms will pay out 6 figure bonuses to second years.

Base salaries are usually pretty consistent... around 65k first year, I think.

 

[Shockwave]

Originally posted by: Hector13

Originally posted by: Shockwave
5 figure BONUS? Your kiddin right? Whats kind of salary? And most importantly, where do I sign up?!

5 figure bonus for the first amd second year analyst. Beyond that (and for associates) it will be 6 figures. Of course, all of this depends on how well your group does and where you work. Some firms will pay out 6 figure bonuses to second years.

Base salaries are usually pretty consistent... around 65k first year, I think.

What locations in the US are these positions available? I'm not in a big hurry to be goin to New York, I'm quite happy in Kansas City.....
Also, how long does one go to school for this stuff?

 

What other reason is there to work than to make money?

 

[Doggiedog]

You also neglect to mention there is a lot of traveling involved. Those hours can be pretty rough.

I work on the equity research side and my hours are like:

6:30 - 7:00 - Get in prepare for the morning research/sales meeting. Check news.
8:30 - Strategize
9:00 - 4:00 - Talk to clients, company mgt, sales team, etc. Work on reports.
4:00 - 10:00+ Write reports.

Yes, the fringe benefits are you can eat whatever you want for dinner and get a car service home but its rough. Have to work weekends too.

 

[Hector13]

Originally posted by: Shockwave

What locations in the US are these positions available? I'm not in a big hurry to be goin to New York, I'm quite happy in Kansas City.....
Also, how long does one go to school for this stuff?

gor ibanking? almost all big places are in NY. Most big firms have offices in LA and SF exist, but they have much smaller staffs. You can find some "boutique" firms on the west coast as well as throughout the country, but again, the majority of jobs are in NY. There are global offices outside the US, but it is generally hard to get jobs outside the US if you are from the US and just starting out.

As for school, analysts come straight out of undergrad (usually with business/finance degrees from a top school). Associates are generally hired after getting MBAs at top schools (or they matriculate from analysts).

 

[badmouse]

All my ibanker friends got their jobs by connections - either recommended by a prof, or recommended by a higherup in the firm, or family. That means if you want the job, you go back a step and try to find someone you know who's a connection. Then you suck up to them. (There's a polite way to say that, but if you need polite ways to say things you don't belong in ibanking)

There is a very specific correct answer to the question "why do you want to get into etc" that goes somewhere along the lines of "I already am a cutthroat sales/analyst/finance geek and I'm gonna make my way to the top of the heap with or without you", but stated more in the form of "My connection here at your firm says you want the same things I want".

Arrogance and ego are necessary, because you won't get anything at all from your job except money. Certainly not positive feedback, friendship, the comfortable feeling of helping people, etc.

Most people get into it thinking they can get a pile of money and then go do something else. Most people get out of it having spent every cent they earned on luxury "perks" like expensive food, toys, clothes, etc, but then finding out happily that there are good jobs out there that don't suck out your soul.

My brother-in-law is a muckymuck at one of the firms you've heard of. It's been interesting watching him for the last 20-25 years.

 

[Hector13]

Originally posted by: badmouse
Arrogance and ego are necessary, because you won't get anything at all from your job except money. Certainly not positive feedback, friendship, the comfortable feeling of helping people, etc.

that is not entirely true... you can get some satisfaction from some of the incredibly complex deals that you may work on or structure.

While I agree that a lot of the work you'd do as a first or second year is crap, ibankers do provide a very necessary serives and definitely do help out people/society, etc.

 

[zillafurby]

Originally posted by: Shockwave

Originally posted by: Hector13

Originally posted by: Shockwave
You gotta be kiddin me.... I wouldnt touch this with a 10 foot pole.....

to clarify a couple points... as an analyst, your hours will not be like the above. You will most definitely not be getting in before 9 (I don't think most associates would get in that early either), and you will definitely NOT leave by 11ish. There will be many days where you stay past midnight. Plus, there will be many weekends involved as well.

But then again, there will be many days when you travel for "road shows" and whatnot (again, working 16 hours or so a day).

Also, at the end of the year, you will need to figure out how to spend you 6 figure bonus... so that could be a problem as well.

5 figure BONUS? Your kiddin right? Whats kind of salary? And most importantly, where do I sign up?!

im starting an intern at a hedge fund on monday, and the hours are normal office hours, plus a bit of internet and reading at home. ib - i wouldnt do that for $1m a year. also if you are smart there is more long term potential in hedge funds, plus you have a life, which is very important to me.

 

[zillafurby]

Originally posted by: Hector13

Originally posted by: badmouse
Arrogance and ego are necessary, because you won't get anything at all from your job except money. Certainly not positive feedback, friendship, the comfortable feeling of helping people, etc.

that is not entirely true... you can get some satisfaction from some of the incredibly complex deals that you may work on or structure.

While I agree that a lot of the work you'd do as a first or second year is crap, ibankers do provide a very necessary serives and definitely do help out people/society, etc.

only managers who lack credibility pay fees to them, on m&a work, buffett certainly doesnt. i guess origination is a bit different.

 

[Hector13]

Originally posted by: zillafurby

im starting an intern at a hedge fund on monday, and the hours are normal office hours, plus a bit of internet and reading at home. ib - i wouldnt do that for $1m a year. also if you are smart there is more long term potential in hedge funds, plus you have a life, which is very important to me.

I work at a money manager/hedgefund... my hours are definitely not 9-5..

Not as bad as ibanking, but defintely 12+ hours a day.

 

[Hector13]

Originally posted by: zillafurby
only managers who lack credibility pay fees to them, on m&a work, buffett certainly doesnt. i guess origination is a bit different.

a lot of companies (like a microsoft) have thier own m&a departments. So these depts fill the same role; eventhough a lot of times these companies will use ibanks anyway.

 

[dangereuxjeux]

Tons of people here at my school end up with i-banking jobs and/or internships. The primary (perhaps almost every single person I know who's doing it) reason is money. Nobody would like it. Living in the office, doing monotonous financial analysis, brownnosing, and selling to people, is not fun. It is not stimulating. It just pays well.

Edit: "definitely do help out people/society, etc." Ha. Somebody has a deluded view of their job. People who build houses help people. Doctors working for the Red Cross help people. Greedy i-bankers are not doing it to help society, or other people.

 

[zillafurby]

Originally posted by: Hector13

Originally posted by: zillafurby
only managers who lack credibility pay fees to them, on m&a work, buffett certainly doesnt. i guess origination is a bit different.

a lot of companies (like a microsoft) have thier own m&a departments. So these depts fill the same role; eventhough a lot of times these companies will use ibanks anyway.

well thats what its like in big firms and growth firms. in hedgefunds often you can have a lifestyle firm that is also a growth firm, without working really extraordinary hours.

 

[Hector13]

Originally posted by: dangereuxjeux
Edit: "definitely do help out people/society, etc." Ha. Somebody has a deluded view of their job. People who build houses help people. Doctors working for the Red Cross help people. Greedy i-bankers are not doing it to help society, or other people.

actually, nowhere above do I say I work in ibanking... cause I don't. I couldn't take the hours plus I (personally) don't think the work is as interesting as what I do now.

Having said that, cliaming that ibankers don't help society is just plain ignorant. You can call them greedy all you want, but our financial markets are what make capitalism work. You would prefer living in communist russia? Didn't think so.