Understanding rather than memorizing
I'm grinding through the BIWS 400 Questions, rewriting answers in my own words (with AI help on stuck points) to truly grasp concepts, not just memorize.
My Dilemma...
How do I permanently engrave valuation concepts (multiples, DCF, LBO, premiums) long-term? There's a ton of resources out there. How do I know which ones are actually worth my time? Model-building now, or hyper-focus on 400Q-style prep until interviews, then grab Excel reps at when I land a job?
Any advice on specific study hacks/habits that helped your IB interviews (or roles)?
I'm trying to avoid fluff courses/question banks that are a waste of time.
To engrave valuation concepts long-term and optimize your prep, here’s a structured approach based on the most helpful WSO content and proven strategies:
1. Understand, Don’t Memorize
2. Prioritize Resources
3. Study Hacks for Long-Term Retention
4. Model-Building vs. 400Q Prep
5. Behavioral Prep
6. Consistency Over Cramming
7. Networking
By combining these strategies, you’ll not only ace your interviews but also build a strong foundation for your IB role. Keep grinding, and remember: mastering the fundamentals now will pay dividends later!
Sources: Guide for Investment Banking Full-Time Recruiting, SA Interview Prep Techniques, https://www.wallstreetoasis.com/forum/investment-banking/sa-interview-prep-techniques?customgpt=1, Feeling down about rejections
Current sophomore recruiting here. I spent this past semester building the actual models for multiple different companies for understanding. At this point, if you haven’t started doing that, I’d just do the hyper-focus on the 400q and make sure you can explain every concept to a 5th grader. Then if you have time, go for marginofalpha questions to challenge yourself. Everybody’s gonna know the concepts in interviews but it’s about who can explain it the best. The exceptions are at EB interviews where the questions will be heinous (BTW this is from seniors who have successfully recruited in my club + I worked for an investment bank so had to learn lots of this already).
Thank you !
Any specific way u studied the 400 ?
Sorry for late response but yes I started with accounting. And accounting is the most important it is the basis for some of the models you build such as dcfs and lbos (rev -> ufcf and rev -> lfcf) and when you project 3 statements there are often some annoying items like DTAs, DTLs, NOLs, and so many more annoying line items that aren’t the “feature line items” that you think about when you’re thinking about a high level IS, BS, CFS. EBs will press the fuck out of you on accounting so focus on that and have that down. Then EV/Equity Val. can be skimmed through but still important. But more important to focus on DCF, then merger models, then finally LBO (but if you’re recruiting LevFin or FSG or some shit LBO is really important and I’d do it before merger models). Also I read through first 6 chapters of Rosenbaum and that really helped get a more detailed understanding of comps, precedents, dcfs, lbos, and the sell-side m&a process. PM me if you want to talk/mock as well.
Happy to call or mock if that would be helpful for you.
Margin of alpha is known to be a scam. AVOID AT ALL COSTS.
You should really know all 400 questions.
If it’s super obscure questions about derivatives / swaps, and you’re interviewing for M&A, maybe don’t worry too much about those.
Memorizing some of the answers helped me understand it back in the day.
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Rewriting the 400 questions is good for the first pass, but that knowledge has a half-life of about two weeks if you don't apply it. You are learning to pass a quiz, not to do the job. 3 things that really helped me:
1. Context over Content
The 400Q guide is isolated trivia. Answers to questions like "why do you add back D&A?" are easy to memorize. But if you actually build a 3-statement model and see the cash balance drop when you forget to link the CFS, you will never forget that concept again.
You need a mix. 400Q for the game of rapid-fire interviews but modeling for the deep retention.
2. Stop Reading Models
Don't just watch a video of someone modeling. Open a blank sheet and try to rebuild it yourself. You will get stuck and that struggle is where the actual learning happens.
3. Simulate the Reps
If you want to avoid fluff courses, look for tools that force you to execute rather than just watch. WSO is good, and I've also used Cook’d AI as a solid resource for this. It gives you actual work simulations.
Get the reps in now. If you wait until you land the job to open Excel, you’re going to have a brutal first month.
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