General Wall Street Information
How Do You Build a Three Statement Model? Here you go and feel free to email us for the excel file. 3 statement model
Do You Have a Resume Template?
Yes we do from the above link, notably no resume is perfect stick with 1 page and these sections. 1) Name Address, 2) Work Experience, 3) School, 4) Interests/Skills. In addition be sure to read the guidelines on fixing your resume here.
How do I break into Venture Capital?
Similar to the Sell Side and Buyside there are clear and concrete ways to break in. For Venture Capital, depending on your background you must search out and find the right story to preach, which should involve five pieces. 1) Work Ethic, 2) Appetite for Risk, 3) Innovation, 4) Salesmanship and 5) Sector Knowledge. If you can get 3/5 on this five point checklist and you have an obsessive work ethic it is achievable.
Where Should I Search for a Job (Post College)?
As expected the short answer is Networking and being head hunted. It is always best to be sitting on the other side of the table with someone who already has a positive view of you. Any hiring manager will choose a candidate with a positive recommendation from a source he trusts over an obscure resume because that is simple human nature. Now if the world seems to be ending at your firm and you’re relatively new you may be forced to go through resume drops. In that case you’ll load up your profile on OneWire, buy up a Doostang account and then search through Indeed. In that order.
Should I take an Excel Modeling Course?
The big problem here is each firm has their own templates, Models, Power Point macros, Excel macros, Word macros etc. Understandably, you’re trying to get an edge so the bigger question again comes down to the same, what is your experience and what transferable skills do you have. It’s hard to understand sometimes for young guys but Advanced accounting would be 100x more helpful on your resume than “Chemical engineering creating the next universe”. Even though chemical engineering is likely harder, we don’t care because it’s not going to show us you know anything about finance and it also is not directly applicable to the job. Assuming you obtain a job in Wall Street your best investment would be an excel short cut course or simply taking level 1 of the CFA to solidify the basics of finance.
Should I get a Masters Degree?
This one is tougher as it will depend on your job experience and which field you wish to enter. For better or worse the Street is a prestige obsessed field so it is best to immediately check into the career center website to see if people are placed into the field you wish to break into. Assume that the top 25 schools in the USA are likely safe, double check to be certain. At the end of the day if you are already on the Street, the answer is no, however if you are looking at breaking in it is best to make sure you get a “double bump” increase in prestige and focus on finance which likely opens the door to the interview room. Your story will be tighter as you can pitch yourself as “learning that you are actually interested in finance and not xyz field” and second proving that you’re continuing to get better (eg. better school/prestige).
The short answer here is this.
CFA:
Yes to the first level of the CFA if you do not have a job on the Street yet. No if you’re already on the Street.
MBA:
Yes if you have an industry background (Tech/Healthcare/Consumer Corp Dev) and want to break in. No if you are already on the Street, unless it is paid for by the company, then you have nothing to lose.
Buy Sell Hold Ratings, What Do They mean?
Simply put, Wall Street is relationship driven. If you boil it down, a buy rating is a “strong relationship” a hold is more “negative than positive” and a Sell is run like hell.
What Type of Personalities to People on Wall Street Have?
Overall with a gun to my head there would be two people on the Street. Extreme type A where a single error would make you have a heart attack and type B where you work the system by being the well liked guy in the office who doesn’t make any big mistakes. Feel free to take a stab at the type of people running this site.
The simple answer to this is below for the sell-side:
Investment Banking: 1) Private equity, 2) Corporate Development, 3) Hedge Funds
Research: 1) Hedge Funds/Mutual Funds, 2) Investor Relations, 3) Corporate Development
Sales and Trading: 1) Mutual Funds/Other S&T, 2) Move within sell-side (generally mroe on the macro research side), 3) break into the buy side
For now the link above is for research and we’ll dive into banking and S&T later as well.
How Do You Survive Wall Street Long-term?
The trick to surviving Wall Street long-term is simple, become Type B. While a lot of people can make it as a Type A, we will be the first people to say Health > Wealth. With that said take a glance at how to be “political at work” and you’ll have a long tenure on the Street. We promise.
How to Tell if a Person Walked or was Let Go?
Notably, this could be in the interview section and it should, however the quick answer is this. “How long did he survive”. If he can’t even handle 2 years as an analyst, that’s a red flag for being a complainer. If the person lasted 5+ years and has a good track record, we’ll give them the benefit of the doubt. Note, a two year stint is next to mandatory to “earn your stripes”
What Advice do you have for a Newbie?
Young-bucks. Simply put… Don’t follow the herd! If everyone else is buying bottles and getting apartments they can barely afford don’t follow their lead. Instead remember to make friends, save some extra cash and avoid hanging out with multitudes of keyboard jockeys… Like yourself. A simple rule, a third a third a third (1/3 living, 1/3 fun/leisure/experiences, 1/3 save). That bonus check may goose egg you one day, it happens to the best of us.
How Do You Survive Work Drunk?
If this question has come up… congratulations you’re on your way to being a Type B. That holiday party gave you one too many champagnes or ciroc vodka shots. Congrats. You’re routine is linked above the best answer is caffiene, vitamin B12 and holding your composure. God Speed.
How Do I Choose the Correct Bank?
All banks suck. Kidding… sort of. While the buyside is always better (Hedge funds for life) unless you are connected you typically start on the sell side. The quick answer is social scanning. Analyze how healthy they are and be sure to run like Forrest Gump if you hear “Work Hard Play Hard” culture.
Which Part of the Sell Side Should I Work In?
Didn’t you read the above? Get to a fund. Half-joking, the basics are as follows:
The Banker: Very intense and can grind our 80 hr weeks
Sales Trader: Can sell “Salt to a Slug”
Research: In-between the Banker and Sales Trader a niche play
How Do I Prepare for My New Job?
Glad to see the new generation is not entirely lazy. The answer is quite simple 1) Relax, 2) Study the basics. Much like any job the first question is always character and trust. If you can’t make simple changes to a document or organize an email by seniority you’re quickly looking at a call to the “conference room” eg. getting fired. The best course of action is actually two items. 1) take a real excel course, 2) practice filling up an income statment by copying and pasting. If you think you can type financial statements faster than copying and pasting please come back to us when your MD reams you out for having a document in “Millions” when you forgot to remove the comma and it was really “Billions”. Control H is your friend.
What Happens During Earnings Season?
“During earnings season there are roughly 30 minutes to update the model, send a quick preview of the important takeaways and see if the company met expectations. Expectation are key. While Revenue and EPS numbers may be important, each sector has a ‘driver’ perhaps it is a gross margin line due to competitive pricing pressures or unit sale numbers. At the end of the day, buyside expectations are everything, if we want to see 10% increase in revenue and the company prints 8%, the stock trades lower and Street likely decreases estimates as well.”
For the buyside you’d say we take a lower position if for example you’re at a hedge fund, slang such as “a third exposure” would be a good way to show you know the buzz words as well.
