Higher Pay = Higher Quality?

IBD attracts bright people because it pays well. Simple. Needless to say, were the salaries to go down, the numbers applying would plummet, as would the quality of the candidates applying.

From what I've heard, the work done isn't particularly hard; I always assumed the wages were high merely because of the sheer volume of work done as well as the competition.

If it were to become a regular paying job* with lower quality employees, would the quality of the service provided by analysts and associates go down that much?

*Starting salary 40-50k with no bonus, assume regular hours with the workload of 1 person shared between 2 or 3 people to bring it down to 40/hr weeks

Beta Chasing

Questions about risk at BBs has come to the forefront again following JPMorgan 's CIO hiccup, but what about risk management when trading your own cash?

At the moment, I'm only investing what I can afford to lose (just under $600) and have been putting it in fairly volatile stocks (pink sheets in particular) looking to see what sort of gains I can get. It could be up 200% or bust in a matter of hours, but I dont mind as I have set aside that much to lose; if I was putting my whole savings account to work it would be a very different story.

I'm interested to see how much risk other monkeys take on in their retail accounts?

My Beef with the Founding Fathers

One of the main things I never understood about the US (along with amish people, lacrosse and the drinking age being set at 21) was the idea that the founding fathers provided some sort of guiding light towards economic prosperity, social justice etc.

Ron Paul talks a lot of sense, but he seems to back up a lot of stuff with 'what the founding fathers intended'*. And he's not alone; all of them Tea Party gobshites are at it, too.*

What qualifications or real experience did the founding fathers have? They were just a bunch of guys who came together and wrote an idealised version of what an 18th century country could be..

Wall Street's Next Hero?

I have always liked Jamie Dimon, and think this article is a tad overdramatic about today's events and more than a lttle rough with him; I think he handled himself well and, IMO, as the majority of the government are caught up in bueraucracy and/or idiocy, no major reform are going to come of this JPMorgan CIO loss.

However, I believe it will be days like today that bring the demise of Dimon. Being the lead banker out of the economic crisis will be the end of him, no matter how good or honest a job he does.

As the article contends:

What's your guilty plea$ure?

Woo hoo hoo, I've got money to burn I wanna burn it on you
Come on yeah yeah, we got one short life I wanna spend it with you.

As I understand it, most in IB/PE/ HF are (naturally) fiscal and don't piss away every penny that they make. That said, it seems that, by your late 20's, you can be elevated to a level of income where you can throw a few grand at something without thinking twice.

To those monkeys who have spent a few years in the industry, what is your weakness when it comes to 'squandering' your money?

CEO By Night

Aside from the shitty hours in some division, careers in IB seem to provide the perfect conditions for enterprise to flourish. You're wealthier than most other people your age, you're young so you're still a bit of a dreamer and, if you've made it in, chances are you're pretty fuckin' smart too.

While I do have an appetite for finance and IB seems well suited to my interests and aspirations, the idea of owning my own business has always attracted me.

Is it possible to successfully manage both? Do you know many people in IB who have side projects that they set time and money aside for?

Dream Degree

Someone asked me this earlier and it got me thinking. These days education seems so hard wired to graduate positions that it feels odd to even discuss education for education's...

Motivation - How to stay motivated

Sitting in my dorm at 2am, typing an article for my WSO internship before going back to my assignment (that hopefully wont fuck up my GPA ) which I will barely have time to hand in to my non-target college tomorrow after running home from my Ops internship. 3 hours sleep tonight if I'm lucky. Did the exact same shit last year and I still didn't manage an FO internship...

In very few other vocations is such a belief needed to keep on going, the light at the end of the tunnel is brighter, that is. Most of us won't get half as far as we like to think in IB, but we keep on going anyway.

How do you stay motivated when shit gets on top of you? Aside from all the belief shit I talked about, I find music to be one of the best things...

The Fastest Growing Industry in History

It seems like Appreneurs are springing up everywhere. According to Tim Ferriss, more and more people are discovering financial freedom by having a ureka moment, putting it to code and watching the dollars roll in. Although he believes there it to be a little more systematic than that, Tim Ferriss believes he's found the formula for a successful app business.

Any monkeys out there doing well in the app world? Is it really as easy as Ferriss says?

Réquiem for a Wall Street Dream

Among existing employees, psychologists and counsellors said that drug abuse has not slackened. Some even said it is peaking, exacerbated by the credit crisis and the volatile and tenuous recovery that has ensued.

To the monkeys who work on Wall Street, have you seen much drug abuse? Is it as bad as its image? Have the dealers been hit by the bonus cuts or has addiction only increased since the crash?

Mod note: here's some supplementary reading: More Blow for Your Dough How did cocaine get so cheap?

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