Does investment banker knows how to invest?
Does investment banker in bulge bracket companies know how to personally invest well and outperform the market? Do they know which stock or commodities will rise soon or expect next profitable real estate market?
Why else would they be called investment bankers
thats a negative
Investment bankers are more like real estate agents, they don't do any investing. They provide the due diligence on a client transaction and create value to the client to push the deal through. They are trying to get the best deal for their client.
With that being said, most investment bankers are not experts in investing, but certainly have significantly more market knowledge that the average person.
Technically in LevFin and Capital Markets group do "invest" by providing capital for loans or providing capital in a syndicate.
Fell free to correct any mistakes. Like my title says, I'm an intern.
Good comment but I'm not sure about the Capital Markets part. ECM & DCM advise the clients on Equity/Debt rising transactions (ie IPOing, issuing bonds...) but they don't really invest. In fact, working at those groups involves less modelling experience (and thus less of anything related to financial analysis), as ECM/DCM transactions are more process driven.
investment bankers do not invest. They perform more transaction-based services like M&A, capital markets, LevFin, restructuring, etc. This is stuff you can google. Agree with the above that I-bankers usually have much better knowledge about markets and investing than the average layperson just given the intertwined subject matter, but it is not their specialty. Asset managers at mutual funds and hedge funds are what you are thinking of; creating pools of money in funds to invest in public equities.
1. Most professional investors don't know how to outperform the market.
2. Investment bankers aren't investors.
This ends the thread
Are you retarded?
Are you? I literally design funds for a living. If I could promise outperformance I'd be on the French Riviera right now. We slapped ten charterholders and 4 finance PhD's in a room, and the best we could come up with was "maybe 3% a year, but 17% tracking error"
Aut magnam cum reiciendis consequatur non ut maxime. Veniam aut et ut ipsam quae. Tenetur cumque itaque qui molestiae. Adipisci tempore et voluptatem dicta sunt et. Molestiae dolores doloribus assumenda dolorum sapiente eaque recusandae facere.
Assumenda nemo vel laborum magni. Vel occaecati tempore fugit provident ipsum perspiciatis. Reiciendis aliquid qui laboriosam tempore et qui. Cumque qui quaerat consequuntur quisquam eum libero. Debitis aliquid quod vel recusandae iusto quis.
Doloribus sunt quas non molestiae nisi voluptatibus ut. Neque dolore voluptates sed. In beatae quis veritatis. Illum mollitia quo dolor. Vel ut delectus eaque ut natus.
Natus sapiente id aliquid qui ut. Iusto quia ullam culpa laudantium. Nostrum distinctio esse consequatur laudantium sunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...