Genuine questions for people with experiences in Investment Banking or Consulting

<p>I have some questions for people who are/have been Wall Street investment bankers or consultants</p>

<li><p>what are some aspects about the job that you wish you had known before you entered the industry?</p></li>
<li><p>which part of your college education do you think prepared you the most with entering this industry?</p></li>
<li><p>what are some of most important skills (including academical) that you wish you learned more in college?</p></li>
<li><p>what was your real reason for choosing this career?</p></li>
<li><p>how does your career foster you personal and intellectual develpment?</p></li>
<li><p>do you truly enjoy you job?</p></li>
</ol>

<p>THANKS IN ADVANCE!</p>

<p>If you have never been an investment banker/consultants, please do not try to answer these questions. I’m trying to get some sincere, serious and honest answers.</p>

<p>Good questions. I'd also like to know:</p>

<ol>
<li>What types of hours you work?</li>
<li>How hard is it to be successful in the cut-throat business?</li>
</ol>

<p>1. what are some aspects about the job that you wish you had known before you entered the industry?</p>

<p>Not much (I know that's unhelpful) - but for me, I was very well prepared - knew it's what I wanted to do coming out of undergrad. Speak to as many people as you can (as you are doing now) to get a feel for the business and assess if it's really right for you.</p>

<p>2. which part of your college education do you think prepared you the most with entering this industry?</p>

<p>Academically? Not much. There is a misconception that i-banking involves rocket science. For certain very specific departments (e.g. such as derivatives, prop trading, etc. which require certain analytical strengths) there is a significant advantage for those who are comfortable around / have strong math skills. But for your typical analyst - you'll generally learn "on the job" and get the necessary basic skills during analyst training. That said, if you are very "math"-phobic - finance in general will be a tough road for you - particularly if you end up in a "number crunching" department like M&A. The analyst program is generally about logging in serious hours, number crunching, and its very intense and can become very routine and rote.</p>

<p>3. what are some of most important skills (including academical) that you wish you learned more in college?</p>

<p>If you can, I'd suggest accounting rather than economics. Why? Simply because most of your days will be spent looking at a company's financials - balance sheet, cash flow, income statement - you'll need to understand how those three link together and what each will tell you separately - for example, a company can be throwing off massive positive free cash flow but could be saddled with massive debt (balance sheet) or could actually be losing money (income statement).... etc. In other words, your ability to determine interest rates (economics) is less relevant than your ability to understand the financial health of a company (accounting).</p>

<p>4. what was your real reason for choosing this career?
Career opportunities, money and prestige - in that order.</p>

<p>5. how does your career foster you personal and intellectual develpment?</p>

<p>Intellectually? More so from a "high finance" point of view. I can value companies and I can value stocks (IMO) better than most people out there. Does that mean I always pick winners? Hell no, I nearly lost my shirt during the 2000 bubble along with everyone else, but still, finance is still a game about fundamentals and that I will always have. </p>

<p>Personally? Learning to deal with a very intense, high stress environment. Nothing will ever be as intense (work-wise) IMO and all that that entails (including dealing with demanding clients and bosses).</p>

<p>6. do you truly enjoy you job?</p>

<p>I'm out of the game. Did I "enjoy" it? There were definite highs and lows - just like most jobs - the difference? The highs were higher than most jobs and the lows were lower than most jobs. It's not a place for the meek.</p>

<p>7. What types of hours you work?</p>

<p>As an analyst? I practically lived in the office. As you get more senior you log in less hours but the stress level starts to sky-rocket. I was pretty burnt out by the time I left and I've never looked back. Bottom line? I got out of it what I wanted and I don't have many regrets about it.</p>

<p>8. How hard is it to be successful in the cut-throat business?</p>

<p>What's your definition of "success"? Mine was leveraging my analyst experience to get into a top b-school ("check") and then after b-school it was leveraging my experience to work in private equity ("check"). So for me it was mission accomplished. Do you want to make a long-term career out of it? Good luck, it's a long, hard trecherous road - but the upside can be absolutely fabulous.</p>

<p>"Success" is what you define it to be. But keep this in mind, just like anything else in life, it's all a mixture of timing, hard work and luck. Hard work is a given - you won't last long if you aren't pulling your own weight (and then some). But if you can land a situation with a good team and / or mentor - it'll go a long way in insulating you from some of the "externalities" of the business - downsizing, dealing with a-holes from other groups, etc. At a certain point (I'd say past Associate level) it's much more about "who" you know rather than "what" you know - basically, if you've made it past the Associate level (i.e. VP / Director) than you're either very good or very lucky - rarely can one be THAT lucky - so you're pretty good. So at this point it's not a question of whether you can do the work - you must have proven that over the years as either an analyst or associate. So it's really about impressing your seniors - do they like you? do they want to promote you? are you "one of them"? Office politics start playing a huge role after a certain point. But don't think for a moment that you can stop being "good" - quite the contrary - they'll expect you to be even better - and even then it's no guarantee that you'll end up as a Managing Director.</p>

<p>First off, investment bankers and consultants do not do the same thing. Secondly, many people here call anyone doing anything at a finance-oriented company "investment bankers". The wider field of finance has a large number of different types of jobs available. </p>

<p>The following comments are applicable to certain "front-office" divisions involving issuance of securities, such as corporate and public finance type jobs.</p>

<ol>
<li>what are some aspects about the job that you wish you had known before you entered the industry?</li>
</ol>

<p>"..it's really about impressing your seniors - do they like you? do they want to promote you? are you "one of them"? Office politics start playing a huge role after a certain point"</p>

<p>If you pledged "the smooth frat" in college;
Are good-looking and athletic
Are from a "country-club" type family background</p>

<p>It will be easier to be "one of them". Because that's what "they" are.</p>

<ol>
<li>which part of your college education do you think prepared you the most with entering this industry?</li>
</ol>

<p>writing, math, finance, accounting</p>

<ol>
<li>what are some of most important skills (including academical) that you wish you learned more in college?</li>
</ol>

<p>Focus on social, leadership, intramural sports
Scholastic: seek Oral presentation opportunities, opportunities to practice thinking on your feet,writing, reading</p>

<p>The accounting, number-crunching type activities are what's important at lower level jobs. I would add proposal writing to that as well. At the upper levels what's more important are the skills needed to develop business and to manage client relationships. Leadership, salesmanship. Being able to manage small working groups as well as make persuasive formal presentations to large groups. Being able to manage political relationships within the firm to get the resources you need internally, and and on the client side get the business externally.</p>

<ol>
<li>what was your real reason for choosing this career?</li>
</ol>

<p>Interest in Financial Markets led to seeking Finance MBA led naturally to job in financial markets</p>

<ol>
<li>how does your career foster you personal and intellectual develpment?</li>
</ol>

<p>When you're in the game, you read the papers daily and think about the impact of current events
YOu develop capabilities in the areas critical to success: political, salesmanship. oral communications, management</p>

<ol>
<li>do you truly enjoy you job?</li>
</ol>

<p>The people who don't; who aren't cut out for it, wash out. Leaving those who truly enjoy the job.</p>

<ol>
<li><p>What types of hours you work?
Many. At the lower levels, there is insane time in the office. futher on, there is insane time traveling. The constant travel particularly can be very disruptive to family life, and many bankers I know have been divorced.</p></li>
<li><p>How hard is it to be successful in the cut-throat business?
It depends how closely your abilities and personality are aligned with the requirements of the job.</p></li>
</ol>

<p>Some other traits that are very important, whether acquired innately or cultivated by design:</p>

<p>-enterprising individuals;. Somebody that will create something; make something happen that isn't there. Make a deal where none exists. Develop a marketing plan at your own initiative and carry it out. As opposed to someone who just does something that they are told to do.</p>

<p>-A degree of "constrained aggression"</p>

<p>-A certain degree of self-love, I would have to say. You deserve to get this deal. So whatever you have to do to get it is justified, because it's your manifest destiny.</p>

<p>Nobody ever said all these people are nice. There are some of the largest egos there I have ever encountered.</p>

<ul>
<li>being really good at getting other people, internally and externally, to do your work, then taking credit for it internally.</li>
</ul>

<p>Any current/former management consultants that could share some experiences? I'd be interested in hearing them.</p>

<p>wow....this thread is scarring me out of finance. i don't want to lose the little sense of 'self' that i do have and become one of 'them'</p>

<p>i want to be able to manage money, help others, work hard. i'm a great public speaker, and i'm trilingual.....but isn't there some option out there for someone like me? someone who wants to get involved with working with money/businesses/financial advising/investing/etc etc...but doesn't want to be in an extremely high-stress/competitive environment? </p>

<p>i know i can't have my cake and eat it too, but any advice???</p>

<p>Maybe asset management?</p>

<p>Could someone who worked in trading answer those questions too?</p>

<p>Bump. Because this is a great thread.</p>

<p>
[quote]
If you can, I'd suggest accounting rather than economics. Why? Simply because most of your days will be spent looking at a company's financials - balance sheet, cash flow, income statement - you'll need to understand how those three link together and what each will tell you separately - for example, a company can be throwing off massive positive free cash flow but could be saddled with massive debt (balance sheet) or could actually be losing money (income statement).... etc. In other words, your ability to determine interest rates (economics) is less relevant than your ability to understand the financial health of a company (accounting).

[/quote]
</p>

<p>Yes, another source! I've heard this from many professionals in banking jobs including i-banking (GS), commercial banking (Summit Finance, Wells Fargo), financial management (ADP), investment brokerage (Fidelity Investments), etc. all have said, GET AN ACCOUNTING DEGREE, and if an accounting degree is "too boring" for your "exciting" lifestyle, then the aforementioned career paths may also be too boring! The funny thing is, all the professionals who have suggested an accounting degree as the best for finance careers, use the exact same rational: so you can understand and use financial statements to analyze/make big financial decisions.</p>

<p>With regards to consulting, how's the pay (in comparison to I-Banking)? After doing some research, consulting actually seems like fun (and my skill-set seems to match). Yet I'd like to hear from the people in the business.</p>

<p>Ivy_Grad referred to "number crunching" - I wonder what exactly that means for a person like me - I love physics much more than math, math being stuff like complicated calc (think multi-variable calc), but I have no trouble churning out physics lab reports etc. Would I be suited to an i-banking career? Am a HS Junior btw.</p>

<p>timepiece, I'm in a very similar situation. I love physics, (but along with other subjects like Philosophy, PolSci and Psych), but math, for me, is a necessary evil. Would I fit IBanking? I more of a "humanistic" person, if you get what I mean - not the hardcore math and number person.</p>

<p>From what I've heard, if you are good at number crunching and accounting, then you should be fine.</p>

<p>number crunching means that for the most part you do a lot of simple math.</p>

<p>oh right. but then, why cant the common joe go into IBanking?</p>

<p>Can the common Joe work from 8AM to 4AM every day, including weekends? And did the Common Joe go to Wharton or Stern? Didn't think so. :)</p>

<p>Lemme ask this. What's the hierarchy?</p>

<p>Analyst < Associate < VP < what then?</p>

<p>8am to 4am... do most i-bankers sleep at the office then? (not a joke btw)</p>

<p>Intern
Analyst
Associate
VP
Managing Director/Sr VP
Executive Officer/MD
CEO/CFO/COO/whatever.</p>

<p>timepiece-Not really. They work 10AM to 10PM on weekends, so they get their sleep on weekends. :)
IBanking is the only industry where they can work you like a dog and solve all complaints by throwing money at you.</p>

<p>Well, one has to work like a dog to get to the top regardless of profession - I'd rather get money thrown at me for doing so.</p>