If I were to hand you a million dollars...
...how would you invest it?
Interested in hearing how some of the professionals on here would approach this interview question.
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Establish a Market-making operation at the CBOE.
There was an older post on WSO where a guy offered $X if someone could get him an IBD job. For this maneuver he was ridiculed by some, applauded by some, and complimented about the size of his testicals by most. Anyway... I would leverage a large portion of it to secure a BB IBD gig in a top group; one that I would most likely not be able to secure on my own, considering my background and lack of contacts.
Another portion would be spent of wardrobe, apartment, etc... things that I will need for my new job. Maybe take my buddies on a trip to Vegas before I start working. The rest would be invested.
Starting a great career (with great future earning potential) and getting money in the markets as young as possible is more valuable than having $1MM in hand. Enough said.
Because you asked "how would you INVEST it?" I guess I take back the part about Vegas. But the rest of it is legit... investing in myself/career.
What an asinine answer. Imagine going into an interview and spewing this shit?
I have a bridge to sell you
That would be a good answer to how you would spend $1 million. However, the interviewer would never ask that question.
I should clarify, I am referring to how would one would invest it in the markets. I recently received this question in an asset management interview. I think the number asked was more like $10 million. It was after the stock pitch question. I don't think I answered it well, and am interested in knowing how some investment professionals would strategically approach such a question in terms of diversification, etc.
Obviously, personally, my first instinct is to pour the money into the Korean People's Army for the liberation of our 10,000 li motherland of beautiful scenery from the chain dogs of imperialism, but I don't think that's what the interviewer wants to hear.
Wait, hold on a second. Someone would use a portion of $1,000,000 to PAY for an IBanking job. What the hell is going on around here?!?!?!?!?
I know...amazing stuff
On a related note:
It is 1933. You are in Berlin, Germany. somehow, you find yourself in a position where you can effortlessly steal Adolf Hitler's wallet. This theft will not effect Hitler's rise to power, the nature of World War II, or the Holocaust. there is no important identification in the wallet, but the act will cost Hitler forty Reichsmarks and completely ruin his evening. You do not need the money. The odds that you will be caught committing this crime are less than 2 percent.
Are you ethically obligated to steal Hitler's wallet? Would you steal Hitler's wallet?
That's the kind of question where you just look at the interviewer and say to yourself, "really, this is what it comes down to? I don't need this job that fucking badly..."
hahaha this would be a dick interview question. i'm just curious about WSO's response
Yeah I thought the point of a job was to get paid. Not to pay out of your own pocket to do the work...
To answer the actual question...I would trade equity and commodity derivatives. I Have some pretty good strategies that returned 60% last year. I'd want to explore those a bit more and tweak them.
^I would do this as well^
I wouldn't steal his wallet. It's theft, simple as that.
yes, i would also take the million dollars and give it to whoever could make me a first year analyst at a BB.
srsly?
I think this whole "paying for the job" is the next step in you guys screwing yourselves over.
"Well, given the great exit ops, I think you should pay me instead of me paying you. Plus, think of the learning experience, you'll learn more about Powerpoint than you ever cared to know!!!" LOL HAHAHAHAHAHHAA
I would buy 1.5 million dollars worth of oil and oil equities and retire.
Funny stuff, but back to the original question, anybody have any advice how to answer this from a perspective of investing in the market / portfolio theory?
If I had the correct way to get into a fund / direct investment (which wouldn't be easy)... I would invest it into residential real estate in mainland China... particularly outside of first tier cities in smaller, regional commercial centers.
I would be charlie sheen for a night
I would open a trading account at 4:1 leverage. This extends buying power to $4M. If I can return 10% a year, that's $400K.
To those who would just use the money to buy an ibanking job, you're the reason banking salaries will eventually get crushed. Not only are you willing to pay for a job, you'll certainly work for less. You don't need to be an economist to figure out what that does to an occupation.
Stop chasing unrealistic BS and learn how to invest and become an entrepreneur. Stability is nice but once you've paid off the student loans, grow a set and sell something. It's the only way you'll ever be happy and wealthy. You're the boss and you can live like a king outside of NY or SF.
Invest all of it with Paulson...
or 60% equities 30% bonds 10% gold
Guess nobody really got the point of this thread
Take short position on high yield market
How many of these topics can we get in one year?
I've got an idea for a new one: If I gave you TEN million dollars, how would you invest it?
With $10 million, I'd be buying farmland and/or setting up an agricultural distributorship. I'm convinced that at some point, the US is going to get pissed off at OPEC and China and start figuring out a way to raise the price of our grain exports.
I guess the first question would be what parameters am I given. "Hand" is a relative term which can mean lent and require interest repayment on return of principal. Also what time horizon do I have to work with as well as restrictions on investments. Lastly, is there a performance incentive?
Not that I am an interview expert but maybe the purpose of the question was to analyze your thought process instead of actual strategy for investment return, after all that's what strategists and fund managers are for.
$1Million = 100,000,000 Pennies = 551,155.65 lbs
i will convert it to Pennies and crush my enemies!
How would you invest a million dollars? (Originally Posted: 02/11/2014)
Anyone help on how to structure the answer to this question? I know there isn't a right or wrong answer and its mainly to check your knowledge on the markets and your reasoning, however, if anyone could give me some direction that would be great.
highlight how all major asset classes have been doing pick 2 then pick 2 within each class and explain why
Another way to answer is to say it depends on investment philosophy. You can take the perspective of an advisor and explain that it depends on goals and priorities. Low risk investors with the need for some steady income would invest in some mix of bonds and other low risk securities, for example.
Colombian bam bam
Low risk? Diversify amongst different sectors and focus on stocks with strong dividends. Leave a small portion as cash.
High risk? Gamble on marijuana stocks and hope I'm right
You know what I would do if I had a million dollars? I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities...
If You had one million dollars to invest in, what would u invest it in and why? (Originally Posted: 01/14/2010)
the title
no idea, but please do me a favor and deliver this message to Duke's Office of Admissions and Financial Aid: If I had a million dollars, I'd invest it in Columbia University and name a building after me, because Duke's financial aid gave me $0 back in high school (not that I was gonna go there anyways) :D
Thanks buddy.
Interview Question?
Your first response should be asking the interviewer what their risk tolerance is. Based on that, you can BS long term treasuries, AAA bonds, conservative mutual funds, etc.
Application Question for AlumniAthlete internship program I believe
the application for Alumni Athlete asks if you had $100,000
Two chicks at the same time.
I would invest in a harem
I have, but it's been many years. Is there a scene in particular I'm forgetting? lol
Towards the end.
I would buy some lambos.
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