Investment Banking vs Private Equity vs Hedge Funds. What is the difference? What do they do? What is the Best?

Hello all,

I am currently at a target school, and I am looking very seriously into a finance career. I'm looking for my niche, and I am trying to learn more about the finance industry at a broad level. I understand this is probably one of those questions that doesn't garner simple and short answers...

 
Best Response

there are books written about this sort of thing...

But honestly if i'm sitting where you are i'd probably want to think hard about what mix of qualities I want out of a career. How important is leisure time to you today? In 5 years? 10 years? How analytical are you? Are you happy working undisturbed in a hyper-focused manner for long periods of time or do you prefer regular interactions? How much training/mentoring/guidance do you think you'll need? What is your 'risk tolerance'? (e.g. how devastated would you be if you got fired in 18 months?) How long of a career do you want? Do you plan to go to b-school? Do you have a view on whether you think markets are efficient or not? Do you like to spend long periods (e.g. 6 months+) on a narrow set of 2-3 ideas, or do you like to have plenty of 'water through the gills'? Where do you hope to live long-term? Does prestige matter to you? Do you care about how your friends/family perceive what you do (whether or not their perception is accurate)?

I would try to answer these types of questions first, and then you should have a better idea of which track suits you.

 

welcome to WSO. my recommendation: change your avatar to a fake picture (not an actual picture of yourself), change your username and signature (you have your initials), and do what I said in your other thread. I'm not trying to be mean, but the reason there are FAQs is because these are extremely common questions that Patrick has taken a lot of time answering. Make use of those resources, but in case you forgot what I wrote:

  1. read the first 30 threads on the first page of the top threads all time in their entirety (http://www.wallstreetoasis.com/hot-topics/all-time)
  2. read the WSO FAQs (http://www.wallstreetoasis.com/frequently-asked-qu...)
  3. take time to think about what questions you STILL have, because as you can see we don't take kindly to someone who posts 5 threads asking questions that have been answered before
  4. post 1 thread at a time, and mention what you don't understand (possibly referencing prior threads)
 

@algernon Not quite impressed with the fact that you had no idea that linkedin tells you who has viewed your profile. And really? You put surveying on your linkedin! Keeping track of company cash flows, reconciling, and identified wire transfers?? Haha you are OVERHEAD!!! Also, remove that GW scholarship. Everybody knows that nobody pays the full price at private schools unless you're a borderline idiot, congrats, I thought I had you there. Its also no news that GWU has had an admissions scam which leaves them unranked by US News...I don't know why anyone would choose to go there...My co-workers are still laughing, interning in the OVERHEAD department. Is becoming a bank teller next?

 

Et vel et qui et et nemo. Et veritatis sit id esse consequatur esse ut. Veniam commodi quis nostrum.

Dolore nesciunt quam molestiae aspernatur sed quos. Quod aut repellendus sequi voluptatum dignissimos. Molestiae impedit est quisquam molestiae. Dignissimos beatae numquam et itaque eligendi aspernatur aut.

Qui voluptates maxime repudiandae illo et distinctio architecto. Nihil quod cum recusandae. Tempora officia minus molestiae veniam. Deleniti inventore sequi amet dolor labore possimus. Excepturi eos qui ad enim odio. Dolor at et molestiae dignissimos placeat voluptatem dicta nam.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”