Equity Research vs. Investment Banking
I'm currently a senior in high school getting ready to graduate this year, and I've been considering my career options in finance. I'm interested in investment banking, but am still open to exploring other options, one of them being equity research. I've read other forums on WSO and across the internet, but have found conflicting opinions on ER. Some have said that ER is much better overall and has much more interesting work than IB. Others said that ER is a dying industry and has very limited exit opportunities. What do you guys think about work life balance, pay difference, and exit opportunities when comparing the two industries? Also, is the recruiting process similar to IB, with target schools and non targets schools? Is it easier to get into ER from a non target than IB or about the same? Thanks for you help.
Hey here's a couple of great websites that will answer all of your questions for you. Hope this helps man!
wallstreetoasis.com -> search
These have been answered too many times…
I got better: https://openai.com/blog/chatgpt
Go drink a beer with your friends and relax
If you can secure an offer in IB, go for IB and try to avoid ER because ER will most likely to automated first. Most junior ER analysts are Excel monkeys except maybe Head of Research/Senior MD who speak to clients. All jobs in finance except the relationship-based ones will be replaced by automation in the next 10 years. Eventually, all jobs will be replaced but IB will require the second iteration of AI that is capable of emulating human emotions and project humility/compassion/aggressiveness.
I don’t necessarily disagree but ER is relationship based…
In a buyside role now, but in ER I've spoken with more C-suite execs on a first name basis than my roommates who are analysts at BB/EB. I got tons of client interaction with good pay and great hours. By the way, every single MD/VP/associate can get on the phone with management and speaks with clients. As soon as I was licensed I was allowed to speak on earnings calls and stuff. I've always been more interested in markets vs. IB so it was what I wanted to do. OP should think of what he wants to do (HF/AM or PE/VC) and then pick accordingly. A bunch of ex-colleagues at hedge funds of all types, AM, IB, corpdev at some pretty cool companies, IR, business school, you name it! That said, as a senior in high school, enjoy the summer, smoke some weed, and drinka beer. Do well your first year of college and have fun– enjoy the ride it's just a job. I wish I could go back to college (minus how broke I was) and just chill tbh
Glad it worked out for you. I work for a boutique so things might be different.
Thanks for the insight, this was very helpful.
Does this guy work in finance? TF you mean all
Jobs will be automated 😂
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