How Can I Learn About Investment Banking? (Economics, Finance, Banking

I'm a high school student trying to figure out what I want to do when I graduate, and like most other high schoolers I want to do something with a high salary. My dads a doctor and my moms a teacher, and I can't picture myself being a doctor and teachers don't make that much.

So I looked into investment banking, but I literally know NOTHING about stocks, economic, finance, banking, etc. I don't even understand why the economy is bad, I just know is has something to do with U.S. stocks =. So how should I go about learning all this stuff?

 
Itanimulli:
And where would you suggest I start?
As an investment banker, I have only one piece of advice for you at the moment. Consider this life advice that isn't strictly applicable to finance.

Do the best you can in school and position yourself into getting into the best college you can get into. Under than a few exceptions, better schools will ensure much higher banking recruit rate. And this is also applicable to other graduate careers whether you decide to change your mind and pursue education, medicine or even management consulting one day.

Focus on what you can control and the most important thing in your life right now.

 
 

1) Read the book "The Intelligent Investor" 2) Read WSJ.com and FT.com everyday to keep up with financial news 3) CNBC and Bloomberg TV are also good sources for current events 4) Get into the BEST possible school as you can 5) Open up a brokerage account (You can start w/ as little as $500) 6) Read WSO Posts everyday...Don't be afraid to ask questions 7) Do a job shadow or unpaid internship to see what the industry is all about

 

I am also a high schooler going into IB. Add me as a friend and pm any questions. To learn more your should read some books.

The Four E's of investment "The greatest Enemies of the Equity investor are Expenses and Emotions."- Warren Buffet
 

Buy 1st year "used" accounting, economics, and finance text books. Read them. Learn the concepts about time value of money, how the stock market works, understand how global events impact the markets. This will give you a taste and flavor that may either completely tune you in, or completely phase you out of this career path. At your age be open to doing what you are interested in and hopefully what you do love can make you money.

Start becoming advanced at Excel so that when you hit college, it becomes second nature. Honestly, when I was in high school, I didn't even know what IB was, let alone the time value of money. All I cared about was getting into college near a beach... you are already far ahead of many people.

  • N
 

All of the above advice is great, but I'm going to go against the grain here a little and suggest that you work hard on developing yourself first i.e. becoming a well-rounded individual. Being another soulless finance guy will do you no good in the long run. That being said, soak in as much as you can while maintaining your social life, other interests/hobbies, and school work.

"Rage, rage against the dying of the light." - DT
 

was it the spanish inquisition/merger?

_________ John Tabacco's raw, unique market commentary based on real information from real short sellers: http://www.TheDailyShortReport.com
 

To me, the best thing I have ever read, by far, is this book:

http://www.amazon.com/Investment-Banking-Valuation-Leveraged-Acquisitio…

It has 32 reviews, all 5 stars, and I would agree--it is fantastic. It is designed for those who want to break in and REALLY gives you a good idea of IB. The last chapter on M&A is the most interesting, I would read it first. Got mine on Ebay for $30

 
sk8247365:
To me, the best thing I have ever read, by far, is this book:

http://www.Amazon.com/Investment-Banking-Valuation-Leveraged-Acquisitions/dp/0470442204/ref=sr_1_1?ie=UTF8&s=books&qid=1276714628&sr=8-1

It has 32 reviews, all 5 stars, and I would agree--it is fantastic. It is designed for those who want to break in and REALLY gives you a good idea of IB. The last chapter on M&A is the most interesting, I would read it first. Got mine on Ebay for $30

Hey thanks for the info. Judging by the table of contents, the book seem extremely detailed. So I'm definitely going to get it. Although I have done CFA level I & II, so probably has quite a bit of an overlap content wise. But I want to start of with info that will give me more of a general idea on IB, and different functions within IB (ie. difference between M&A and capital markets, different functions within capital markets). Any suggestion people??

 

You should know there is no overlap between what is in that book and the CFA. This book is about the different modeling techniques, how bankers understand and present valuations, and the details from start to end of the M&A process. As much research I did on IB when I was interested in the career, I never really understood what to expect until I read that book. Other than that, it is not really much more than what you have probably been reading.

Search this forum for the other questions, like differences in groups and such. I am not too familiar with that.

FYI i am in equity research.

 
sk8247365:
You should know there is no overlap between what is in that book and the CFA. This book is about the different modeling techniques, how bankers understand and present valuations, and the details from start to end of the M&A process. As much research I did on IB when I was interested in the career, I never really understood what to expect until I read that book. Other than that, it is not really much more than what you have probably been reading.

Search this forum for the other questions, like differences in groups and such. I am not too familiar with that.

FYI i am in equity research.

ER falls under the general operations of an IB?? Do you have any suggestions on readings to learn more about ER?

 

Yes, as mentioned in my original posting, I have Vault and the mergers and inquisition website. Looking for other good sources that give an organized, and general to detailed overview of operations within IB. Please any more suggestions people??

 

If you're not sure you want to be in IB, get an internship in it with a BB IB. The internship will look good in just about any business-related field you go into and it's the only real way to find out if you like the work.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Read Monkey Business. Sure some of it is drama but it introduces investment banking in an entertaining way. If you're brand new to the idea of IB, going over technical books on valuation probably isn't where you want to start. Scoopbooks has a book that's something like The Recruiter's Guide to Investment Banking that is very good. If you read WSO for a while then you get a good idea of things. The Accidental Investment Banker is another book. Mergers and Inquisitions just redid their website yesterday and the new design is much more organized now.

 

One question you have to ask yourself is if you want a job that requires you to work insane hours. Do you really want to work 15 hours a day? It pays a lot but the per hour rate isn't as impressive. IB jobs are tough to get. Many people leave after their 2 year analyst stint and go do something else. Most people really don't like the insane hours you put in. It really starts to get to you. People talk about work/life balance. IB doesn't provide much of one. If that's important to you, having plenty of free time to spend on whatever or whoever, look for another career. Almost every person in the industry that I've talked to about IB has told me that when I say I'm interested in IB.

 

I bought the first edition a couple of years back and when I actually needed it last week, I didn't find the model templates, anyone has those?

“Self-control is strength. Right thought is mastery. Calmness is power. ” - James Allen
 

Not the sharpest tool in the shed unfortunately, but I've applied to Stanford and Cornell as reaches (and because my parents wanted me to). I'm mostly looking forward to hearing BU, NYU, SCU, and the rest our fallbacks. How about you!

 

You have lots of sites to read in the internet when it comes to investment banking. You can also consult your professor to give you a better understanding about it. If you are really eager enough to have it as a course in college, then do good in school. You are halfway ahead from your goals in becoming a professional relating to investment banking or maybe an economist someday.

 
Best Response

You are on a site that ranges from people entering college to seasoned professionals. In regards to general finance take your math seriously. Further, get into the best school that you can. If you want to be ahead by the time you are done with college start watching the markets now. Learn what drives different asset classes up and others down. There are a variety of posts that should help you on your way. If you are serious about it PM anybody with extensive experience and inquire as to what you can do to get ahead at your age. Check out sites like investopedia to help learn some basics. Learn what you can about the markets and start networking immediately. Getting an interest in this field in your youth should help establish you for the future as long as you are highly motivated. Memorize the financial statements now. Also, learn how to relate to people from all walks of life. Stay motivated!

Only two sources I trust, Glenn Beck and singing woodland creatures.
 

Hey pinkclouds, I did as you asked... Apparently, when you talk like a normal human, friends and family can understand you and you become a more likeable human being. I recommend you take the same advice you gave to me, for yourself. When you do talk like a normal human as I learned to do maybe you could give me some book recommendations on investment banking? Besides, both of us now learned to talk like normal humans so you can tell me "no" in a way that does not sound like a knuckle dragger.

You are an adult and I need to respect you, so thanks for your advice!

 

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**How is my grammar? Drop me a note with any errors you see!**
 

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