WH's Interview Stock Pitch Checklist

This was originally posted on 10/26/12

For many positions, the stock pitch is the biggest part of the interview. It gives the interviewee the opportunity to explain his or her thought process and the way they evaluate an investment opportunity. It can separate the fakers from the legitimate candidates. In many cases it can be the difference between being asked back and being sent home.

But there's no class you can take that teaches you to properly pitch a stock. And there's plenty of people on this forum who are better resources than I am, and hopefully they'll chime in, but I've pitched the same 5 companies dozens of times and seeing the pitches that succeed and the ones that fail, I'd like to share my experience as to how you should go about pitching a stock in an interview.

Getting right to it, here's my checklist of things you should be sure to include when pitching a stock in an interview.

The Success of AshleyMadison.com

mod (Andy) note: "Blast from the past - Best of Eddie" - This one is originally from February 2011. If there's an old post from Eddie you'd like to see up again shoot me a message.

I saw this on Bloomberg the other day (video after the jump), and I wanted to get your opinions on this business model. For those who don't know, AshleyMadison.com is an Internet dating service with a twist. It pairs people with potential love interests just like eHarmony or Match.com, but only for those seeking extra-marital affairs or affairs outside their current relationship. Site membership has exploded into the millions, and it appears they've found a very profitable market niche.

Now, you guys know I'm not into moralizing. Cheating's never been my thing, but that's just me. I've certainly known a lot of cheaters over the years, but I've always figured that was something between them and their significant other. I will say that it's my personal belief that most cheaters get caught eventually, but I don't really have any hard data on that.

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11 ways to Fake Work like everyone else in your office

mod note: this was originally posted on 7/11/12
Everyone's on vacation. You've pretty much done minimal work the last week because you were celebrating your independence. Let's face it, you've probably checked out since memorial day weekend and now begins the long stretch towards labor day weekend and the end of the lazy summer. With most colleagues on vacation, it's pretty difficult to get much done during the summer - but you're stuck behind a desk anyway. So how do you keep busy and stay underneath the radar, while doing as little as possible?

Why do some people leave Wall Street?

So I'm about to enter Wall Street, but having noticed some kids I grew up with, who worked in the BB or HF full-time leave, I'm scared. Three of them:
1. One went to a semi-target (think Georgetown, UND), worked as a paper trader for a few years after grad at a BB, now is "biz-development" at some IT firm or something
2. The other went to the Ivy League, worked in a start-up HF, then went to BB, and now is at a start-up.
3. This guy went Ivy League too, was a credit trader at a BB for 4 years, now is at an insurance firm. He's not a salesman, but still.

Bonus Bananas March 8, 2013

1) Bitcoin: more than just the currency of digital vice (The Guardian) - Top billing for this Guardian piece because it was easily the most fascinating thing I read this week. I had no idea you could buy recreational drugs online and have them delivered, and pay for it all with BitCoin. Little by little, day by day, governments grow more impotent thanks to the power of the web.

2) Goldman Sachs Is Changing Its Managing Director Selection Process (Business Insider) - Pay attention, gunners. There's less room at the top for the Vampire Squid, so now the annual selection process for new MDs will only happen every two years until further notice. Bummer for those of you who thought you'd get the tap this year.

3) 9 Sweet Ways to Totally #Crush That I-Banking Internship (BroBible) - I-Banking advice from BroBible? You bet your ass, and it's pretty spot on in a vapid, lax bro kinda way. Doesn't hurt to follow this advice.

Post-MBA PE Recruiting from B-Schools

sent this as a reply to someone - thought it might spark an interesting discussion -- topic was Post-MBA PE Recruiting from b-schools:

Post-MBA PE recruiting depends on where you go for school and which firm you were at. Its tough from all the top MBA programs to get a post-PE job - too much competition today. The good news - recruiting is up quite a bit this year compared to the last couple. Internship PE postings also seem to be up quite a bit. Given the capital overhang decreasing every year, I think that by 2015 or 2016, you should have a much better PE recruiting.

As far as what I have seen - about 40% of people with pre-MBA experience are not continuing in the field (based on a presentation from Glocap - they survey this annually using LinkedIn etc.). This may be because they haven't found anything, or because they choose to exit. But - the people with solid PE experience usually do get interviews for all the funds that are looking - its just that the competition is tough.

Do A Lot of Bankers Waste Their Money?

First of all, this isn't a bashing thread, so please don't take it as that. I recently spoke with one of my friends who worked in investment banking and one thing he said was that he was surprised how hard it was for him to save money despite him earning a great salary for a 22-23 year old. Not only is NYC an expensive metro to live in and a lot of money gets spent on taxes, rent, food, transportation (even the subway tickets are somewhat expensive he says), etc. but also, the culture of investment banking, in a way, made it hard for him to save money.

Physical Oil Trading Basics (Part 1 of 2)

I have seen a few posts on the Commodities Trading forum asking about how petroleum trading is priced, hedged, etc. I was reasonably high up in Risk Management for a "major" trading company in Houston for a few years and am now running a hedge book at a smaller company, so I thought I may be able to impart some knowledge (didn't burn out, just moved closer to family).

My focus has been primarily on gasoline, so that is primarily what I will discuss. However, I have also done some jet fuel, naphtha, and LPGs. There is some variance between those products compared to Crude, Bunker Fuel, and on down the line, but the concepts translate for the most part. A lot of this is easier to understand with back-of-the-envelope math, but I'll do my best to get the point across verbally.

5 Things You Can Do Now To Help With Recruiting

To the sophomores out there, a news flash: you don't necessarily have to land a FO finance position during the summer to have a good shot at IBD SA recruiting the following year.

Many people work under the misconception that, with things as competitive as they are now, one has to have an IBD SA (MM or boutique) after sophomore year. This belief, while helpful, is simply untrue. I know several people who had no issues with SA recruiting junior year who didn't have an MM or boutique internship sophomore summer.

For those who aren't working FO this summer, here's what you can do to get ahead of the game for next time.

Wells Fargo Securities:prestige, pay, hours, exit opportunities

Just curious how does WFS stack up against bulge bracket firms? In prestige, pay, hours, exit opportunities, easier to break in etc?

How To Be A Gentleman: A Monkey's Review

What does being a gentleman mean to you?

Does it mean knowing which fork to use at a properly-set table? Does it mean being so impeccably dressed as to make Patrick Bateman and 007 envious? Does it mean knowing when to tip, how to tie a bowtie, or how to properly greet a lady?

It can be all of those things, but at its core being a gentleman is more than just being the nice guy or being the best dresser. It's about getting out of your head for a change and soberly considering how you come off to other people. It can be summed up in one of the first gentlemanly criteria laid out in this book:

"A gentleman never gets so big that he can feel free to say or do things that make other people feel small."

The Diminishing Value of B-School

I was pretty surprised to find the following article in the Wall Street Journal. Kiplinger's Personal Finance? Sure. But the Journal? Wow. It's a pretty dark day for B-schools when the Journal starts publishing stories about how they're a waste of money.

If you want a business education, the odds aren't with you, unfortunately, in business school. Professors are rewarded for publishing journal articles, not for being good teachers. The other students are trying to get ahead of you. The development office is already assessing you for future donations. Administrators care about the metrics that will improve your school's national ranking. None of these things actually helps you learn about business.

The article goes on to point out that the education you receive in B-school can be found for free on YouTube, and that the real value of B-school is in the network you develop. So is there a more cost effective way to develop your network than throwing $175,000 at a school? The author seems to think so.

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