Just me noticing this?
Been on the job for a while now, and I’ve been meaning to write this. I’m at an EB but talking to some analysts I know/met (in BB especially) seem to know surprisingly little about finance technicals or models. Like shit I would expect from a BIWS or 400 questions guide, not the advanced stuff. I get that we are new and all but given most of them have had a summer analyst role before, it’s quite startling. It’s extra strange because some of them are at reasonably strong banks, even some of the top ones. I get that EBs get the technicals hardo rep but even so it seems quite surprising. Want to emphasize I’m not trying to brag about my technicals, I’d say I’m behind/at average of my EB peers lol.
Ah, the age-old tale of the technically challenged analysts! It's a jungle out there, and sometimes even the brightest bananas can struggle with the financial modeling vines. Here's the scoop:
Remember, everyone's journey through the financial jungle is unique. Some might be swinging from deal to deal with ease, while others are still figuring out how to climb the corporate tree. Keep sharpening those skills, and maybe share a banana (or a helpful tip) with those who might be a bit behind. It's all about helping the troop thrive!
Sources: https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Ask CompBanker, I keep getting told I'm "not technical enough." What's happening?, Three Things You Didn't Know About Becoming A Rock-Star Analyst, To All Freshman and Sophomores
Curious to hear an example. Maybe they’ve neglected it since recruiting? Don’t know how well you could do in IB without that background knowledge.
You learn it on the job you monumental loser.
I feel like there’s a few reasons,
1. Target schools normally don’t have finance majors. They’ll pick it up eventually but it’s a harsh few months of being continually chewed out until they can update a model with minimal comments.
2. Nepo babies / DEI kids. If your dad is the head of a bank you can get in easier with less effort, same goes for those who can use DEI programs. Some are good some are bad, don’t focus too much on this it’s just how it is.
3. Yes, you’ll forget technicals from the time you recruit sophomore year of college and when you start full time.
And of course, the last but not least, while everyone thinks they’re the smartest in the world, they’re not. The amount of geniuses that burn out after following the path is pretty much all of them. You’ll say “but that’s not me” but wait 10 years and see where you end up. Most of us are social and enjoy having free time, but are ushered into this industry because we’re taught that having structure is good. (Kumon -> AP classes -> High SAT -> good college -> clubs and internships -> investment bank -> private equity firm -> MBA -> Hedgefund ) if your entire life is based off of what others expect for you you aren’t living. I had a post on if it’s okay to be happy, I made the decision that it is. You won’t find a lot of comfort getting rid of a chip on your shoulder
Can I PM you?
Do you spend your free time grilling fellow A1‘s from other banks on technicals??
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