Realistically, what level of technicals and news do I need to know? When exactly should I start networking/finding internships from a semitarget?
Ik my questions sounds cliche and repetitive, but hear me out:
Half the people here are like "the BIWS 400 by themselves are good enough, while the advanced questions will lock it in stone..."
Whereas the other half are like "if you don't know Pearl-Rosenbaum cover to cover, haven't won the Excel Financial Modeling World Cup, and wrote a thesis on every WSJ article from 1950, even if you go to Harvard, you won't even land a regional boutique search fund internship..."
Who is correct? Do the $200 paid WSO IB guide or BIWS IB guide cover it ALL? Is it a good idea to start buying/studying 1st semester of college? How many weeks will it take? Most importantly, WHAT LEVEL OF MODELING IS NEEDED? Some people say "you don't need Excel for a lil SA position" and the other say the above. Also, how much news do I actually need to read, and should I read news for every single coverage group I apply to?
And as for internships, I'm getting conflicting advice again: BIWS is saying "if you don't have a boutique cold email internship locked in by freshman spring, you will never see light of day" whereas the people here are like "bro chillax relax your freshman year j party and wait till soph spring before mentioning the alphabets I and B..." any clarity here?
I'm getting so much conflicting advice it's racking my brain lol
Additionally, is it a bad idea to start networking from the beginning of freshman spring? My uni does things where that if you don't get into the ultra-difficult clubs, alums won't even talk to you if you're drowning, so imma have to start super early. The only thing I'm worried about is that if I get all these calls in early and during freshman summer, they might forget about me by the time recruiting begins a full year later... any advice on keeping those contacts alive?
Thanks a lot!
You’ve been introduced to confirmation bias
If what people did worked for them, they will suggest everyone does it.
If what people did, didn’t work for them, you will probably not hear from them or they will suggest a different approach.
You can get a job with knowing only the basic BIWS questions. However, the more you know, the higher the probability of success in recruiting, and the higher probability of success on the job.
Let’s resolve the confusion. If you understand the 400 questions, you probably do understand Rosenbaum & Pearl in some sense. You should still read it as it will enrich your life as someone in the finance profession, but understanding the 400 is understanding the book.
On modeling stuff, there’s great courses on that on this website, there’s BIWS or Wall St. Prep. A lot of boutiques don’t even test modeling with a modeling test, so that can’t possibly be a prerequisite. Perhaps a technical understanding of Excel shortcuts, sure.
Navigating the sea of advice on breaking into investment banking from a semi-target school can indeed feel overwhelming. Let's break down your concerns with insights from the most helpful WSO content and threads.
Technicals and News Knowledge
Level of Technicals: The truth lies somewhere in the middle of the extremes you've described. Mastery of the BIWS 400 questions can indeed set a solid foundation for interviews. However, understanding the principles behind the questions is crucial. You don't need to be a world champion in Excel or have encyclopedic knowledge of historical WSJ articles, but a strong grasp of financial modeling and valuation concepts is essential. The WSO IB Guide and BIWS materials are comprehensive and designed to cover the breadth of knowledge expected for interviews. They are a good starting point and often sufficient for most entry-level positions.
When to Start: Starting to study in your first semester of college can give you a significant advantage. It allows you ample time to digest the material thoroughly and apply it in practical settings, such as case competitions or club projects.
Modeling Skills: For a summer analyst (SA) position, you're not expected to be a modeling guru, but you should understand the basics of how financial statements interact, the principles of valuation (DCF, comps, etc.), and how to make adjustments in Excel. The level of modeling required often depends on the firm and the specific group you're interviewing with.
News Consumption: Staying updated with the financial news is crucial, not just for interviews but also for developing a well-rounded understanding of the industry. You don't need to read every article out there but focus on major developments, especially in the coverage groups you're interested in. Tools like the WSJ, Financial Times, and industry-specific newsletters can be invaluable.
Internships and Networking
Timing for Internships: There's no one-size-fits-all answer, but starting to look for internships early can only benefit you. While you don't need to have everything figured out by freshman spring, being proactive can open doors to valuable experiences. It's about finding a balance; don't stress if you haven't locked in an internship immediately, but also don't wait too long to start looking.
Networking Strategy: Starting to network in freshman year is not a bad idea, especially if your school has a competitive club culture. The key to maintaining relationships is periodic, meaningful engagement. This could be through updating them on your academic and professional progress, asking insightful questions based on recent industry news, or even sharing articles you think might interest them. Aim for a touchpoint every 3-4 months to keep the connection alive without being overbearing.
In summary, while the advice you receive can vary widely, focusing on building a solid foundation in technicals, staying informed on industry news, and being proactive about internships and networking will set you on the right path. Remember, the journey into investment banking is a marathon, not a sprint. Pace yourself, stay focused, and leverage resources like WSO and BIWS to guide your preparation.
Sources: In Search of Wisdom, How to prepare for summer ASSOCIATE internship, You want a summer analyst offer? Here's how..., Non-Target who broke into BB, https://www.wallstreetoasis.com/forum/investment-banking/non-target-to-bb-ib-sa?customgpt=1
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