What are your reasons for going into banking?
What are your reasons for going into banking vs. other areas of finance? What's your "formal" reason (e.g., exposure to businesses, good exit ops) and what's your "real" reason (e.g., it pays well)?
It makes sense that if you plan to stay in finance, the exit ops coming out of banking are worth it. However, what about those that leave after two year and do something completely different? The following isn't a completely serious question but still curious about answers - obviously the pay is good, but if a person chooses ib because of the pay, when you're working like 100 hours a week - wouldn't you make more working 2.5 40 hour/week jobs per year total than in banking?
Exit opps is more of a real reason than pay in the scope of a two year program. Your analyst compensation is very good, yes, but if you factor in the high cost of living (NY), it doesn't really become a defining factor as opposed to say working for a top tech firm which will have a much higher quality of life. Ultimately, it's about potential which is why exit opps is so important because if you pay your dues early on, you will make the big bucks later on and this is practically guaranteed in such a structured hierarchy. I don't know what to say about doing a 2 year stint and then moving out of finance. To plan that in advance seems kind of pointless, most people who do so really loathed their experience.
In terms of other options in finance, front office positions like banking and S&T will always have much more appeal ("master of the universe", working on big deals that have real impact), prestige, and earning/career potential than middle/back office stints.
Also, the hourly wage argument comes up a lot but you have to realize that other jobs won't let you work that amount of hours so you will never get paid that much all in all. You also can't have more than one full time job, its part of your contract. Plus, this argument only plays against the first couple of years. If you work hard and play your cards right, you'll be making a ton of money in a short amount of time that just isn't possible in other career arcs.
Don't say "models & bottles" or any variant of wanting to make a lot of money/get attractive females etc. I covered this in a post on my site the other day.
Good reasons to "say" in an interview include the learning opportunity, chance to see how very high-level C-level execs actually operate (can't get that in any other job at this age), liking the pace/environment with all very smart and driven people, interest in finance, etc.
My "real" reason... ah... I kind of forget it has been so long haha. I did not come from a finance background and I think back when I applied to jobs 2.5 years ago I had become really interested in finance/business and that was a big motivation for me. The pay is obviously good but on a per hour basis, you're right, no better than any other job at this age.
How about consulting? Can't you see C-levels in consulting?
What are your personal reasons for going into investment banking? (Originally Posted: 04/11/2011)
for me, it's because i love the idea of helping the world's most important and innovative corporations with their most complex problems, which will enable them to reach their full potential and impact the world in an even more positive way, benefiting the economy as a whole. whether i'm working on a gamechanging IPO or a multibillion dollar merger, knowing that my work can influence the world markets in such an impactful way seems very fulfilling
Although I dont currently work in banking, that is what I am working towards.
1- While in college I had my own business. I worked 70+ extremely stressful hours a week, while going to school. Although my business grew and I did well, I ended up hating the business and the people I had to deal with. But I did recognize a capacity to work absurd hours between work and school. In school, I really enjoyed finance. Even in my business, the aspect of it that I loved most was valuing and brokering the sale of other businesses.
2- I look at it like a 5 yr plan. Get into banking and go through the analyst program, then go to a top b-school. Go back to banking after, work a few more years and see where I want to go from there. If my career in banking is really taking off, obviously stick around. If I really despise it, like I know many end up doing, then I would like to transition into something else, maybe have saved up a little bit of money to start a business.
From what Ive seen/heard, banking is not worth the money. Thats why 23 yr olds that are making 150k are leaving. Thats why 26 yr olds that are making 300k are leaving. The real compensation is the learning experience. You learn as much in 2 yrs, as ppl working regular jobs learn in 6 years. You're just choosing to invest heavily in the beginning of your career as opposed to investing moderately throughout. I want to invest heavily in the beginning, learn a tremendous amount, and hopefully do really well and make it to MD or beyond. If after 5 years I dont feel like thats something I want, I come out with an MBA from a top school, and experience in one of the most competitive careers at some of the most prestigious firms in the world working alongside very ambitious, extremely bright ppl.
You sound like a tool or a summer analyst.
Lettuce be cereal, we all want to make money first and foremost.
Deal making is cool....when you're an MD. A lot of us are just here to pick up skills, build a resume and set ourselves up financially for the next step.
money lol
just to style on back office and laugh at them in bars and constantly throw my business card in their face.
Well, for me personally, my wife killed herself because she thought this world was a dream. She jumped off a building and left documented evidence implicating me as the killer, even though I totally wasn't. Anyway, now I'm stuck in Paris and I can't return to the states to see my children. Long story short, this Japanese business man that owns an airline said that he could make a phone call and help me get back if I just help him with this one task: complete a two year stint as an Investment Banking Analyst.
So, yeah, pretty much just been doing that...
So I guess the real question is: after your stint is over, does the top keep spinning?
Nobody in their right mind wants to work 100 hours a week unless it paid off. If you want to change the world go join peace corp. or better yet the military. Such a tool, sound like your running for Ms. America, yeesh.
Haha as they say its all about the benjamins. You should join some the christian missionaries sounds like it would suit your tastes. Your not going to be doing "gods" work or be doing some noble deed. Get real you want to make money and are worried about exit opportunities
in real life boutiquebank4life would get his ass kicked
hopefully by back office guys
irony
Access to money and power [and by extension.....women]. The work is cool, but I wish I had been a doctor. Then again, I wish for world peace, but that shit's never happening, so fuck it, I'm partying it up.
Kiss my ass.
was just thinking the same thingBLasoise = blastoise ???? .....or is it an evil twin? inquiring minds want to know
No models and bottles responses yet? AJ would not be happy
YO lifesgreatmystery U MAD I'M STYLIN AT U W/ MY LAMBO N MEGAFUND OFFER WHILE U IN BACK OFFICE FIXIN COMPUTERS AND SETTLIN TRADES?
imposter bIastoise is actually pretty funny.
but in all honesty (and at the risk of coming of as a tool)... earn credibility as a businessman and MAYBE pick up some relevant and transferable skills/knowledge for a business career while i'm still young.
Someone read Ender's Game.
boutique if you actually had a megafund job you wouldn't be on WSO posting about it
think your shit through son
you're a soft ass kid in high school who's never seen pussy and never will
the janitor at your school straight up has had more action than you ever will, nailin' your mom after school while you're on WSO. that's real son
Great book. Speaker for the Dead was a worthy sequel too. Didn't read the others. Apparently a movie adaptation in the works.
^^^ movie adaptation has been in the works for years, though it's never happened. btw, xenocide and children of the mind were also quite good. i stopped there.
i want to be able to eventually launch hostile takeovers by issuing shitload of junk bonds, control vast global flows of capital flow by my finger tips, make CEOs tremble in fear at the mention of my name, and engineer gigantic cross-border deals with chinese sovereign wealth or arab oil money.
basically just pillage and plunder
Some days, I imagine myself a pirate hoisting a pirate flag on the way to work, but they were too civilized. Vikings were more bad ass. Actually, this is a good idea for another post
.
we all have our reasons
What are the "right" reasons to go into ibanking (Originally Posted: 02/20/2010)
Since people say you shouldnt go into ibanking for the money, what should the reasons be?
environment, challenge, awesome people, great culture, etc, numerous reasons
awesome people? lol...we're all losers who work way too much. :)
Right reason is whatever you want it to be, just don't say it is for the money.
models and bottles.... I can't believe I got it in before anyone else.
You have to find the "WHY" within yourself to reach your goals. so ask yourself!!!
Some people actually like finance. That's a good darned reason.
say its for the exit ops...so you can make even more money down the line.
You didn't get into Silverlake out of undergrad.
Develop a strong corp fin background (learned a lot in school - but want to know how it is really done) Want to work on deals that make an impact (talk about some of the successful deals the company worked on, but caveat that you never know when/if a pitch would turn into a live deal) Want to be focused on clients.
You want to show that you've done your research about the firm, and are really interested in the firm. don't be too general, as you'll get follow-up questions as "why not consulting, why not corporate development"?
Reasons why you chose IB (Originally Posted: 10/12/2009)
I'd like some insight on why some of you chose banking over trading. Currently, I am exploring both options and would like to know the differences in lifestyle/culture and what types of skillsets would suit banking or trading.
Thank you.
Exit ops. I think trading is definitely more stimulating than banking, but banking really opens up a lot more doors in terms of PE, Corp Dev, or really anything else you'd ever want to do.
In banking you actually work on deals that impact how companies operate. I find it a lot more interesting to work on longer-term projects than following the unpredictable stock market on a day to day basis. Although as an Analyst you'll just be doing excel and powerpoint work, I find the area more interesting.
Also as captk said, banking gives you more exit opps.
cause i'm a fucking idiot
I'm making it up as I go along.
A major factor in my decision as well.
IB for the right reasons? (Originally Posted: 06/14/2012)
Been lurker on here for quite some time but just joined. I've noticed a lot of posts about quitting banking and posts in response to people burning out which has got me thinking. I'm currently a sophomore and on "the path" to IB (attending a target and hopefully getting a finance internship next year). I find finance pretty interesting although I'll be honest, 75% of my motivation comes from the desire to earn a fat paycheck. Am I just setting myself up to get burned out?
On a more unrelated note, I've also seen the term "preftige" thrown around a lot. What does it mean and is it related to prestige?
palm to face.
Well, I will not start my training at a BB for a FT Associate position for a few months, but I can give you my two cents on what led me to banking and maybe let others weigh in on it.
I entered business school after spending my formative years flying jets for the usn. My major motivation for getting an MBA was not just to make myself more marketable, but also to find out what I wanted to do with my life. One day one of B-School I had no clue what I wanted to do. Over the course of my initial accounting and finance courses I found out that I really liked the subjects and then started looking into specific finance career paths. F500 corporate finance seemed boring, dull, and repetitive....something that I knew I did not want after my time in the military. S&T seemed somewhat attractive but I really liked the transactional, client-focused aspect of IB. I enjoyed building financial models and analyzing financial statements, specifically the problem-solving aspect of those tasks. I also knew I needed a high-energy, fast-paced environment and I especially was aware of the fact that I wanted to work with a group of highly-intelligent, ambitious, and talented people from all walks of life (That was not the case of my peer group in the military....quite the opposite).
How much did money play into the equation for me? Honestly, I would not take an 80-100 hour a week job if I was not going to both enjoy the work (somewhat) and be well compensated, no matter what the industry. I have a feeling that if you do something you enjoy (relatively) and excel at, financial renumeration will follow. Obviously, there are exceptions to this. No matter how great an artist you are and even if you went to the best art school in the country, you probably have no chance of having a summer home in the Hamptons. What I am getting at is if you enjoy marketing or operations more than finance and accounting, you should take a serious look at those career paths as well.
If you think you would hang yourself if your job entailed hours upon hours of building excel models and reading SEC filings I would say that banking might not be your cup of tea. My advice would be to get that IB summer internship and see what you think.
Thanks for the advice. I see people on here like you that genuinely like finance, building models, etc. but I also see people on here that talk about "walk away numbers" and getting out of finance after making money. I'm guessing those people don't last very long?
I echo the above.
Means to an end? (Originally Posted: 02/04/2015)
I recently decided to reread the Black Swan and it got me thinking about something again. Nassim Taleb and a lot of people I know have simply used trading/ib as a means to attain financial independence so that they could pursue philosophy, literature, or something they were truly passionate about. Is this the case with any of you or are you totally enthralled with finance?!
I wanted to publish like Taleb and Lewis, but I couldn't find a publisher to work out a deal on my 15 page book written in crayon.
I would never want to pursue philosophy or literature, who the hell told you that? I don't think most people want that, I think people find finance interesting (economics, capital markets, etc.), and deal-making is exhilarating, plus since the money's good, people go into the career.
I think that no matter what the career, everybody wants financial independence. with limited exceptions, I think the American dream is to make it on your own, not to live off of parents or social programs (could be wrong with that last part), so financial independence isn't a unique goal to WSO. financial independence also doesn't have to be subsequent to your career, it can be concurrent.
I do it to pursue golf and good sushi/beer, not philosophy or literature.
amen brother
Thanks for all of your responses. To clarify the point about who told me that, a good friend at a Glencore/Vitol told me that the main attraction was the ability to travel, learn about different cultures, and their respective histories.
the attraction of what, finance? or having money? because really you're talking about just having money, being able to travel is not unique to finance
Wrong motivation for becoming a banker? (Originally Posted: 11/08/2009)
Just wondering if this falls in line with the motivations of my fellow monkeys in recruiting for banking:
I have a strange motivation for why I am doing banking and it was mostly came from "beating the competition" mentality. At my school everyone in my major knows it's most "prestigious" job, so everyone is a dick to everyone else in terms of academics, sharing notes, sharing information about interviews, talking to you, etc. I wanted to feel above all that crap and not be stuck in the same jobs (i.e. accounting) as those douches, so I really gunned for banking to "one up" them.
Fast forward to today, I landed a great offer at a BB and am proud of it, but only because I beat the competition and won't have to be on the same level as them. I don't care about compensation at all, just the fact that I came out with relatively better job offer. I like finance and all, but I honestly never had a hardcore "must be a banker" attitude.
Anyone feel the same way?
What firm?
would you like to do? The first time i heard someone talk about ibanking (He didn´t even mention the bottles and wine lifestyle) i thought: This is what i want to do for the rest my life. I´ve always liked finance but i never really tought about a career in anything until that day.
I go for banking cause my teacher mentioned it one day back in high school. She said kids these people are insane they work 80 hours a week and make over 100k their first year damn why am I a teacher ;) I knew I will go into finance but after that day I knew I want to be an investment banker :) wohoo
i think you won't know for sure until you actually start work.
but being very competitive is a key ingredient to becoming a good banker. at the bank you'll be in a similar situation where everybody is trying be the best/do the best.
if you're a guy who can deal with tons of hard work, you're going to be fine. if you can't deal with the workload, or burn out, well...you'll find out soon enough!
Why did the chicken cross the road? Read: Why do bankers want to be bankers? (Originally Posted: 10/18/2010)
Riddle me that, will you?
Bad genes.
Same answer to both - to get to the other side
Because they don't want to die as a nobody and are delusional enough to think that banking will instantly change that.
Legally, I think the chicken had to cross the road in order to simply comply with the law.
Money, chicks, power, and chicks. Or at least the perception that that's what's waiting for you.
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