Ex equity research analyst here - the other thing I'd mention is that generally speaking sales & trading seems to suit more extroverted people who enjoy talking to clients. Equity research from a personality perspective tends to suit introverted people who like to go in depth with detail better than sales trading. However you still need to wine and dine clients etc build relationships with the corporates under your coverage. I found the latter seemed to come earlier in my career (from end of year 1 onwards) for ER than my IB peers
Don't get ER wrong as @W stated, you are still required to maintain relationships with clients (funds) and the companies you cover (IR, c-suite, etc). You will not survive in equity research if you spend the whole day fidgeting with models and reading 10-Ks. If you are the type that can't sit in a circle with 10-15 fund managers and converse over dinner, you might wanna go for a credit rating agency.
@@iluvsquarez agree with this Just to add to this - I agree on the importance of relationships in finance. I'm now a buy side fund manager, I'd say aside from the fundamental skills I picked up during my 5 or so years in equities research - the biggest benefit to my career has been the network I built (which to be honest at the time was mostly unintentional), whether from doing investor trips and getting to know sell side competitors, ex colleagues who've moved into industry or to other buy side firms, bankers on the other side of deals, long term contacts with suppliers, competitors, industry experts etc to the companies we now analyse on the buyside. People are much more willing to help or share their expertise with you when they know you (though there's still a place for cold calling). People are often surprised to learn that I am an introvert - you can train yourself to strike up a conversation and connect with anyone - unfortunately, they don't teach this in degrees (well not mine anyway!)
I was around pre-Volcker, and every time I see videos like this, it makes me really sad that the industry has basically been decimated and turned into a commission model. This used to be the bitch money pre-Volcker, but now it's the biggest source of revenue... Hopefully they let IB's start trading their own books again...
I clicked on this video out of curiosity... How can people work 70+ hours a week and have a life? Do people really enjoy doing these types of jobs/ schedules? I make $215k+ a year (not including stock options + benefits) as an Enterprise Account Executive at a Fortune 500 company in Bay Area and I work 35-40 hours a week. Took me 2.5 years out of college to get here; working my way up to $350k/ year. Can someone please answer my questions above? I genuinely do not understand why people get into this industry
Some people genuinely enjoy working longer and are fine with it. I personally like working more than 40 hours but I am a blue collar guy so my work is a lot different.
What was yo major out of college man I’m curious about it. I agree with you I don’t how some people work 70hr a week and have a life but some enjoy it.
Because being an account executive is not as sexy to these people due to their nearsightedness. Account Execs don't have a well-known exit opportunity to 1 mill+, in their eyes. Idk if this is true, I hear a lot of CEOs come from sales backgrounds, and I'm sure that AEs at successful companies have a path to senior levels approaching $1 mill.
Hey, thank you for putting so much effort into the videos to help us viewers as much as possible. I am trying to break into the investment banking world from a non-target school. Is there any advice you could give me?
Hey Ben, great video. Big fan of the channel, congrats on Wharton (Katalan's options class and Wry's entrepreneurship classes were some of my favorite). Just to knit pick a little bit, I would probably say that prop trading has an equivalent if not more lucrative exit opportunity as those you've listed. I believe that it pays better than Private Equity with significantly less hours and is only accessible from school directly or experience in S&T (obviously only comparing the big firms, Citsec who offered fresh grads 400, Jane St, HRT, Optiver, etc, etc).
For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I been trying to stick with index funds. I feel this new interest rates hikes could crash this economy. Nevertheless I'm in need of a good investment plan currently. Do you have more clues that could help?
you need to develop yourself in all ramifications don’t just jump in because you heard someone made so amount of money, employ professional help if you need to because on the long run you’d lose money not sand. In the long run, markets always have and will go back up.
@@kaylawood9053 Having a coach is key to portfolio diversification, My advisor is “Eleanor Annette Eckhaus” You can easily look her up, she has years of financial market experience.
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@Smith John I’ve been trading crypto with Mr Steven Lawson for over a year now and I've made about a whooping profit of $86,000 in crypto its not much but I'm ok with the progress since i now make a whole lot from the comfort of my bed....
Every time you talk about the hours that go into IB I wince; it's unnatural to work so long! Where on the spectrum would RL be? It seems to dip into elements of all three... Great video as usual ☺️
@@jingming601 I love it! It's the perfect blend of science & finance. Every day is not the same in terms of tasks/project. The finance is challenging but that makes me want to be good at it!
Hey, I’m an international student trying to break into finance industry and I don’t have any prior finance experience. I’m going USA to pursue masters in finance. Can you give me any suggestions which might be helpful to get into IB? And I’m going to a non target school.
Checkout Anton Kreil's seminar on how much money do trader make, he's an ex trader from Goldman Sachs And JP Morgan, Im not a bot i swear, your answers are all there.
Hey I am from Croatia(Europe).I am passionate to run Private Equity Firm or Venture Capital. What position should I look for ? I work as financial analyst (performing equity valuation), accountant and also consultant role. I think I need skills across investment banking (valuation) and private equity ( understanding industry and businesses - operation) and fundrising.
I have an interview with Credit Suisse for a Junior Tax Analyst role. I have 1.5 year of experience so if they ask me about the salary range, what should I tell them? (Manhattan, NY) Please help
Not really necessary for equity research. After 1-2 months on the job if you just read the team's research and mimic the writing style you're good. You're not gonna be writing for the first few bits and even if you do, 100% someone more senior will proofread what you wrote and send you an email going like - FYI I made edits, this is good to publish. And you'll get a copy back with a bunch of redlined text. After a few tries you'll be aight.
I'm surprised at this... In my experience most IB grads start circa 40/50k (not including bonus) depending on the firm. Retail banking grads generally start around the 35k mark, again depending on the firm but their bonus pool is nothing to write home about. This is London specific, with other cities / regions of the UK being much less. Obviously this is just from my experience working in the city.
Thank you for the informative video! I wonder if one can publish/sell his or her independent equity research report without being employed by equity research firms or investment banks etc.
If you are *not compensated* - yes. If you are compensated for your investment opinion you will need to be licensed (series 7 and 63 to give said advice and series 86 and 87 to put your name on research). These, however, would require sponsorship from a registered broker-dealer. And I'm making the assumption you're in the US and governed by applicable industry regulation. So if you do decide to publish your own independent research, make sure you're not being compensated. The internet is still fairly new to the industry so there's a lot of gray area but the last thing you wanna do is be used as the example setter on future legal issues.
Great video! Exactly what i was looking for! Just a small question about credit research, and does something similiar to bond research exist(equivalent to eq. research but for bonds?). And is the paygrade terribly worse for credit research than eq. research?
