Over on the Ask Us Anything section we’re starting to see the same questions come up. This post is going to address why the advice won’t change and how we can save time together.
1) How Do I improve my Diet? We have covered diet advice in a post. If you haven’t taken a look then go ahead and read the post. If you’re slogging 80 hours a week you need to be efficient and as we stated before, if you don’t want to read the post, here’s the basic outline:
Breakfast: Fruit + Protein. Worst case a protein shake in the AM and a banana/fruit bowl on your way to work
Lunch: If you have a high paying job, lunch is used to improve your political positioning so you always eat with people so suck up the $10-12 meals
Dinner: You can get $25+ from your company, do not waste it on unhealthy food. Most people will eat terribly which starts the downward spiral. There are hundreds of options online using seamless. If you don’t have to work late… then make your meal at home after your day is done.
By doing this you guarantee 2/3 of your main meals are healthy. Lunch may be hit or miss, but if you’re smart all 3 will be perfectly fine and you won’t break the bank.
2) What Bank do I Join? Again this question misses the point by a country mile. The question is, which bank will allow me to get promoted the fastest. If you have no idea which bank then go by the rule of thumb
Elite Boutique (Moelis, Qatalyst, Centerview, Evercore, Lazard, etc.)
Bulge Bracket (Goldman, Morgan Stanley, Citi, etc.)
Middle Market (Jefferies, Piper Jaffray, etc.)
No-Name Banks (simply make sure it is the same job function)
No, we will not get into a back and forth about “what exactly is E-Boutique versus not” it is up to you to make that decision but if you’ve done your due diligence the answer will be extremely obvious. If they pay above top bonuses at a bulge bracket… it’s an E-boutique. If it pays the same as a BB… it’s probably smarter to choose the BB.
After your very first job none of this matters at all anymore. From that point forward you choose the firm that is going to promote you the fastest. Think smart. It is about responsibility not prestige.
“F*** prestige get money”
Put that quote on your cubicle. People who obsess over prestige have never had a long career on Wall Street. Maximum of maybe 5 years. To put the nail in the coffin check out one of two blogs we recommend (we only recommend Danger and Play and Financial Samurai). Click on FS’s blog… notice something? He started at a top shop but his real money came in after getting promoted and generating a ton of revenue. **hint hint**
3) When Should I Work Out? Well do you even work out? If you’re under 30 years old and you don’t work out 6 days a week you’ve already lost in the first place. If you have been working out 6 days a week, you probably already have a healthy routine! See how that works? So the question is not when you should work out it is if you even work out in the first place. We got this question many times and the answer when pushed is exactly the same.
If you work on the East Coast you go to the gym first thing in the morning. If you work on the West Coast you go to the gym after work.
You can feel free to change this if you’re a morning person or a night owl but it really misses the point. The point is this:
“There is no science, there is simply consistency.”
Consistency is how you keep yourself honest. If you can make it to the gym every single day and lift correctly, you’re going to see gains.
4) What Do You Think About the Stock Market Levels? Always the same answer, do not care at all. You should not care if the S&P is at 1,700 or 2,000… simply dollar cost average into cheap ETFs such as VOO, SPY etc.
If you’re trying to beat the stock market and you only have a half million dollars or so in the bank, you’re wasting your time. $500K in the bank to invest is pretty much a waste of effort. It means if you beat the bench mark by call it 5% that is only $25K. You may as well go and chase real revenue in a business. $25K for 10+hours a week is only $48/hour… That is significantly worse than what you’re making on the job anyway.
If the economy collapses? It doesn’t matter again. Generally recessions last about a year so you simply sit around and take the extra cash that was on the sidelines and buy any time there is a large correction. Your cash was on the sidelines because you want to continue buying through the dips so you get lower entry prices. Maybe you lost your job for a few months. No big deal. You had cash on the side to keep buying and get your next position.
If the market goes up 20%? Great already exposed getting richer!
What if inflation goes “crazy”? Again already own assets… getting richer! Only poor people think inflation is a bad thing.
5) I Make $50K and I am X Years Old What Do I Do? Some tough love and inspiration at the same time. First why in the world did you do this to yourself? If you look around there is money everywhere. A weekend in a high cost city driving an Uber will net you $30+ an hour. That is an extremely low estimate and yet that gets you an extra $60K per year. Why is it an *extra* 60K per year? Well, if you’re not working at least 80 hours per week and you’re broke, you have no one to blame but yourself. Anyone who believes they should be rich working 40 hours a week is going to be in for a rude awakening.
If you attempt to come back with the “but i’m smart” argument, you’re going to get laughter on this side of the web. Why? If you were actually *smart but lazy* you wouldn’t be broke in the first place right? It is much smarter to control what you can control. Go ahead and start slogging those long hours because at some point everyone pays their dues.
Finally, to put the nail in the coffin on this one… If you believe that anything over 40 hours is “too much work” then how exactly are you going to catch up to someone better than you putting in more time? If Person A is working 60 hours a week making $100K per year and you’re working 40 hours a week making $50K… You’re already making significantly less than Person A on an “hourly basis” and there is no way you’re going to catch up by working less and learning less.
Get to the grind!
6) Does Money Attract Women? Yes. Anyone who says otherwise has never made a good amount of money. Here is a general guideline since the question is asked so frequently:
$50K or less: it will be a negative to your sex life because you are not making enough
$50K – $100K: in a regular city this will be perfectly fine, in a major city it is still a detriment to your sex life
$100K-$175K: in a regular city you’re doing well, in a major city it now has no negative or positive impacts to your sex life
$175-$250K: Positive impact to your sex life in practically every city
$250-500K: Significant positive, less because of your life but because of the value of your time. At this point you’re extremely busy, you’re traveling, you’re not available, these are traits that will make you incredibly attractive. It won’t be possible to fake these trips/traits.
$500K+: It is practically impossible to blow through this type of money with common sense and everything in the previous tier are truer.
$1M+: If you can make this income at any point in your life you’re set. Your life changes because all of your actions value your time and comfort. You fly business/first class and do not care. You live a life that is impossible to fake.
Given the range and scope of this blog, it is certainly possible to get to $250-500K (before mid 30′s of course). This is achievable for anyone who wants it. When you start pushing up on high 6 figures and 7 figure numbers, you’re going to have to do something special.
Finally, there is no need to bother asking people like us. You can check out James Altucher’s blog, a multi-millionaire, who comes to the same conclusion… money gets girls.
(Caveat: before all the guys who live on shoestring budgets come in, yes you still need some social skills. That is about it though. If you don’t have some sort of social disease you’re going to be perfectly fine if you ever obtain large amounts of money)
7) Can You Hire Me? No
8) Are You Writing a Book? Maybe, not enough page views as of today. Creating a book that will take a long amount of time. It is certainly not worth it for a 5 figure payoff.
9) Industry Overview on XXX Sector? Probably, these are for Wall Street folk and the blog is currently a ~50/50 split it seems. This means it’s likely but no promises.
10) Resume Reviews? Nope! Hate them.
11) Can You Redesign the Blog? 100% agree needs to be re-done, no time-table yet though.
2) I am XX years old What do i Do to break in? We also get this one far too many times here’s the general guideline. Unless you have something spectacular you are holding back, this is the backdrop.
Analyst: If you are 25 years old or younger, keep gunning for an entry level slot as an analyst. This means you pass CFA level 1 if you have absolutely no finance experience to prove you understand the basics and then you get straight to networking. If you’re at a non-target then read our post on how to network/recruit. Now if you are from a no name school, no work experience and low GPA. You have next to no shot and are better off going to get an MBA later in life. This is the truth. As a non-target or older candidate with no experience, you need to have something to bring to the table otherwise you will lose time and time again to 22 year old candidates with banking internships, top GPAs and a great school.
Associate: If you are 26-33 years old this is your second chance to break in. If you have nothing related to finance, probably best to get an MBA.
Vice President and Above: Likely 33+ years old and you’re making a switch from a revenue generating career. In this case you should already know if you’re well qualified. Generally speaking, if you’re in a sales role or run a product line at a firm and are paid $300K+… You’re likely a good fit (this is general as most people who are in this slot know if they have the skills to move to the sell-side or not)
There you have it, it will answer 99% of questions. If you’re young you simply network and spin your resume assuming you have some skills that are transferable. If you’re in your late 20s you’re likely better off with a top MBA.
Hey there, I am currently a research associate at a top Houston bank (think Tudor Pickering, Simmons, Jeffries) and have received an offer as an analyst on the trading floor of arguably the top supermajor oil company – in terms of trading – in the physical commodities group – power & gas. The firm I am currently at has good name recognition but the compensation is sub-par, would it be wise for me to accept the offer at the supermajor trading physicals (large increase in salary + bonus as well)? Or should I soldier on in my current role. Current mid-term goal is to have ~$1mm liquid before 30 – which job would offer a better chance of this happening?
As always. Think LONG term.
Which position is going to get you promoted the fastest? Just as important… Which one will you be good at?
You have to answer those two yourself. If you’re on Wall Street to think “intermediate” or “short term”. You already lost.
I’m currently in Mexico studying abroad and effectively have 4 months of free time. At the moment using time to chase girls, but because my #1 goal is speaking spanish close to a native-level I have to communicate a lot anyway so I dont think think its a complete waste.
Should I make an internship here? It will probably slow down my Spanish Learning, they bascially dont pay and there’s a good chance I would end up somewhere no one knows outside of Mexico. Worth it to sacrifice three months for the resume? Or better use all the time to push my Spanish as close as possible to a native level while I have the chance here?
I’m form Germany and will do a Master in Finance there. Will speaking German/English/Spanish fluently (not perfectly, but good enough to work, C1 level) help me to get a job in investment banking or are languages pretty much unneccesary?
Awesome Blog, thank you.
1) Spanish won’t help you at all in getting a job in investment banking in the USA. It is worthless. What you are doing is of zero value to work in banking in the USA.
2) Yes get a job in finance. Work experience >>>>>> speaking Spanish or moving your GPA to a 3.7 instead of a 3.5.
If your girlfriend constantly tells you about the guys who are hitting on her and bragging about the guys who like her, what’s the proper way to handle that situation? Should you confront the guys especially if you know one of them personally?
“cool babe”
Ha! Although “mean” this guy is dead on.
1) Get rid of her she is passive aggressive and is trying to gain hand.
2) Never confront your guy “friend” she just gave your gift assuming she isn’t a liar. He is not your friend.
I am wondering if I should get an MBA. I was recently hired at a very small bank in the real estate investment banking practice. The practice works with bulge bracket banks, but the bank itself is not a brand name. If I want to break into private equity in the future should I get an MBA?
Switch banks first. If you can’t then you may be forced to get an MBA.
Try to avoid the MBA, particularly in a bull market where lateral hiring is plentiful
Do you guys recommend any nootropics or think that they are necessary? I’ve always struggled with brain fog and want to know if this is just about developing concentration or there is a drug solution?
Thanks
No we don’t *recommend* any. Simply eat healthy, veggies, fruit etc. then add some coffee and tea.
You can try to mess with some nootropics, we covered “drugs” in a post previously…. But we do not recommend any on this side of the web. Use at your own risk. Good luck!
Recently secured an IBD analyst role in London and due to the high rent prices I am considering a mortgage and buying a flat. I realise this goes against a lot of your other posts, but I would be receiving the entire deposit from parents (to be repaid upon sale) and the monthly payments would be around the amount I would pay for rent. I am looking to stay in the city for at least the next 4/5 years.
Does this change your view on taking on a mortgage/ large amount of debt at a young age?
No debt. Wouldn’t do this. If the debt is not under your name then sure, that’s a free apartment.
If your parents are willing to give you money for a down payment, tell them to put that into a CD under your name and you will use it when the time comes.
What are your thoughts on rebalancing? I have money invested in a s & p 500 index fund with Vanguard. Is it true that you have to rebalance once or twice a year? Whatan’s the truth? Thank you.
1x/year.
How correlated do you think are stepping out of your comfort zone, and achieving success in life, and is it perfectly correlated right up into infinity (until you can no longer get further out of your comfort zone)?
You cannot improve without getting out of your comfort-zone by definition.
Can you guys write a post on the smartest and best ways and times to shop for clothes,cars, electronics and real estate ? how to get the most bang for your buck while still enjoying these things and life? how to become a smart consumer or shop like a pro?
No. This is a poverty mindset/frugality mindset.
It will not help you become richer, you want to do all of your “shopping” once a year where you revise everything.
1) you try to find higher yields
2) if you have leverage in your portfolio you try to decrease the rate
3) if you’re moving credit cards around you max out the points
You do all of these things yourself and do them at maximum once per year. The rest of your time is spent generating revenue/profits.
Hey Guys,
There was a post called “Happiness”, but seems like it has been deleted. Is it coming back or is it gone for good? Would it be possible to put it back for a short while.
PS- The new blog layout looks really good!
Cheers!
Damn that was quicker than Usain Bolt. Forgot to close it down.
That said, do not see a post in trash that was titled happiness. Maybe it was labeled something else.
Feel free to email us with the general framework and we can see if we remember the name of it.
Thanks for the complement on our mediocre design effort!
[1] Do you also remain anonymous in your biz when networking (I assume no) or doing video sales letters?
[2] For a biz…digital or tangible products, or does scalability only matter?
[3] Do you recommend having a real Facebook or LinkedIN profile for biz networking purposes? I currently have no profiles on either.
1) No. Your assumption is correct.
2) Scale is all that matters. Digital has higher margins of course.
3) If you are under 5 years of experience you can use linked in to obtain jobs. After year 5 you should just get rid of it or use it to recruit people (you shouldn’t be using it to get new positions because your connections should do that).
Thanks for opening this up. Appreciate the effort. Keep it up. Questions:
1) What steps would you take to prepare for activist/event-driven hedge funds assuming you will be recruiting as a second year IBD analyst and have one year to prepare
2) How do you prevent/overcome fatigue/banker burnout when you have been cranking months on end?
3) Actionable advice to become more social and develop better conversational skills?
4) What are your takes on the current buy-side climate with increasing dry capital and above average trading multiples? If the markets are getting more andx more efficient, make more sense to stay on the sell-side?
1) That is an extremely tough one. The best “way” is to obtain deal flow that is activist related. So you would want to jump on any deal that is *hostile* and you would also want to jump on any private equity deal. This is the most tangible because a private equity deal is essentially saying “this company is not being run correctly” and any hostile deal is the same except even more aggressive. Great question.
2) This one is just interest in the space. Most people try to do Wall Street simply because it pays well, these same people get burned out and don’t last longer than 5 years. You should expose yourself to work that you are interested in. Finally, read our post on politics to decrease your working hours: http://wallstreetplayboys.com/office-politics/
3) Unfortunately this question is far too broad and would require a full on book. That said read all of our game related posts, we even mention specific topics in our post on picking up Latin girls.
Game: http://wallstreetplayboys.com/10-ways-to-evolve-your-game/
Latin Girl Post: http://wallstreetplayboys.com/how-to-pick-up-a-sexy-latina/
You need to learn your own *type* of game. Trying to copy anyone is just going to make you a carbon copy (a lesser version) of someone else.
4) Not much. Both sides are seeing pay increase. You only go to the buy-side if you are *certain* the group is good. This is a myth we have broken down many times.
You do NOT leave the sell side if you’re getting promoted *unless* you are 10000000% certain that the buy-side firm you are leaving to is legitimate and will pay you more over a *5 year time frame*.
Only people with <5 years of experience think the buy-side is the holy grail. There is no holy grail. Do what you're good at and make sure you are "in" with the right people.
Maybe it is the buy-side. But maybe you're great at banking... Then you should probably stay. Don't follow the masses unless you are certain your situation is the correct one.
To reiterate. This is not bagging on the buy-side or sell-side, the point is to think *long-term* over the course of 5 years. Politics play a big part on both sides of the fence.
I’m an Analyst at a BB. My MD (who I have a good relationship with) has told me that he will push for me to be promoted to Associate during the next round of promotions. The issue is that I don’t like the other people I work with and don’t really like the work our group does. I’ve been recently trying to network with another group in the bank that I would enjoy more.
How can I ask my MD for a referral or other help with transitioning to the other team? Or does bringing this up to him make me expendable and I should just pursue this on my own? Or lastly, am I just an idiot for wanting to leave when there is a reasonable chance of a promotion? I’m not sure how much longer I can stay in my current position. Thanks.
That is extremely complicated.
Probably cannot answer this with limited information since you’re 3 years into your career.
1) be certain about where you want to go
2) be certain you wont burn a bridge by asking him for a referral
3) really run the math and see if you can actually move all the way up to VP… If that is the case you may be a fool to leave
There is only so much we can help. In that case you should follow the three steps above. Answer these questions *yourself*
1) What work do you actually want to do?
2) Are you going to be good at it?
3) Will you be accepted into a group that actually promotes? How certain are you?
If you can easily clear these three you’ll find your own conclusion. Write out the realities in front of you and don’t BS yourself.
—
Putting it bluntly. Your question is too vague because you’re saying “I am unhappy but getting promoted” this is not a good question because you have not yet analyzed the situation for the 3 questions above. Hope that makes sense.
If you’re smart enough to get promoted you’re smart enough to analyze the situation *unemotionally*
Hey WSP,
I’m 24 years old from Mongolia, grew up in Poland, studied International Business Administration in Germany. After first year of studies did an internship for the real estate company in Mongolia, my main tasks were doing research and updating company website. Besides studying, I’ve been doing translations for the Mongolian business people in Poland and Germany. Also from time to time did research for the food produces, which could be suitable to import to Mongolia.
Graduated in October, and right after did an intership at small corporate finance and consulting company in Berlin specializing in finding funds for biotech and mobile payments. My tasks were mundane. Preparing ppt. presentations and investment teasers for potential investors, updating investor’s databank and researching different stuff for my manager. Worked for 9 hours a day with a low salary barely to make ends.
I speak English, Mongolian, Polish, German and a bit of Russian and French.
Grew up in Poland, and used to help out my father selling textiles on the market as a child, and had a long experience as a seller on the market.
After my internship noticed that I cannot sit for 9 hours in front of computer.
During studies, opened company in Mongolia and for less than a year was selling high end shoes in Mongolia and unsuccessfully tried to organize and sell business training workshops in Mongolia ( for 2 months talked to big and small companies trying to pitch trainings to HR managers).
After various internships, get noticed that after couple months I always want to leave, because feel like doing biz on my own.
Was thinking about returning to Mongolia, and start a business there besides working in one financial company. Spoke with two CEO’s in financial industry there, and advised me to get skills and return in the few years.
Right at the moment, I feel like I am ready to pursue my own business instead of working for somebody. Street might be not suitable for me, but I love sales.
Used to love selling and salesmanship is my thing( do improvisation and stand-up as side hobbies).
Got an idea for business. Can survive with only food and shelter.
After reading your posts, thought about finding some job on the Street in Europe and try to do business as a side thing, but if I feel like an entrepreneur, even with my failures. I am thinking that in long-term, better to suck it up and build your own biz, rather than waiting.
Also I have in my mind one sentence from your post, that in your twenties there is a huge energy to run many projects at the same time.
What do you think?
Thank you very much for the posts. Cheers from the Europe 🙂
1) You need to learn to communicate better. This entire comment was far too long.
2) You answered your own question. You said you don’t want to do finance long-term and you feel that you are an entrepreneur… So go down that route.
3) Finally, if you don’t have an offer, you don’t have an option on the Street so that is why point number 2 is the easiest answer.
A more helpful comment. Reiteration. *Please learn to communicate better*. You should be able to ask a question without giving someone your life story. If you can learn to communicate better you’re going to have a *much* easier time in life.
How have the “protected” weekend/day/etc programs at BBs changed junior bankers’ lives in reality? Are firms taking them seriously? Is the lifestyle improving?
Industry hasn’t changed at all.
We would wager 99% chance that it never does. (Only 1% because the world ends or some drastic change)
Pay will always fluctuate in bull vs bear markets of course.
People who think hours will drop to 40 hours a week out of the blue are all idiots who don’t understand the industry and won’t get into the industry anyway.
Nod, smile, ignore.
Understood, but have things improved on the margins such that banking is now more a sustainable path?
Do not know what you mean. Maybe it needs clarification?
If you are *good* there is always a spot for you.
The reality is that it is better to enter in a BEAR market than a bull market because you want to hit a bull market when you are up for promotions.
Analyst/associate level doesn’t mean anything. Never has. Never will.
If you are actually good (bear market or bull market) there is always going to a be a spot for you. Period.
Think long-term if you want to actually get in the game.
To reiterate. Nothing has really changed on the banking side.
Sorry for not being clear in follow up. I’m referring to all these work life balance efforts at banks. Understood that a banker will never have a 40hr week, but was wondering whether such efforts (e.g. a protected Saturday or weekend policy) have made life marginally/incrementally better for analysts and associates such that banking is now more sustainable.
Already answered above. There has been *no change* at all.
Note: maybe the people who are never getting promoted have an improved “work life balance”… See career associates… But anyone who matters? *No change*.
The industry is set up so that would never really change. If you don’t understand why you should look into how the industry actually works.
If a deal needs to close. It needs to close. If you’re on the deal and you want your “Saturday off” don’t be surprised when they F*** you on your bonus and the other bright eyed associate closes the deal while you’re sleeping at the wheel.
Industry hasn’t change. Unless some crazy regulations come in, it will never change.
Love the site. I’m currently an Air Force officer (graduated from USAFA) with 1.5 years left on my commitment. I have been wanting to end up as a long short equity trader for a long time, and am trying to find the right approach as I will be 27 when I get out.
Everyone keeps telling me go to bschool but I would like to avoid that if at all possible. I really don’t want to waste 2 years of my life and the $ associated. I just want to get to work. I’m sitting for CFA Level 1 in June. What are the chances of getting a shot as a junior analyst/trader at hedge funds? Also, what are your thoughts on prop trading firms such as FNYS? Any advice other than going to bschool? I have no family commitments and am willing to do whatever it takes.
Thanks for your advice,
Ryan
Already answered on this page my man…
Your friends are right you need the mba.
You have less than 1/1,000,000 chance of getting the slot you want with a CFA level 1 or even level 2/3 with your background.
Hate to tell you but the reality is what is written on the top of this page. Over 25, no experience = get an mba and get a solid *spin* to your story. Good luck.
—
We do not cover prop trading on here. So we cannot comment.
Bschool it is then. Thanks
Referring to the prior question regarding prepping activist/special sits HFs. How would that preparation work change if you work in LevFin/RX?
For restructuring your best bet is to get on private equity deals as well. Similar but not quite.
A debt deal/messed up company is closer to lev fin. A hostile take over (as noted above) would be closer to an activist. Hopefully that difference is clear.
Think about the companies you’re working for and it helps your spin.
If a company has a ton of debt, is running into covenants soon and PE firms are looking at fixing the company… probably a good idea to get on that deal.
If you’re trying to get into leveraged finance, then you need to work with deals that have debt issues. That is where the *most* relevant experience is.
Don’t expect to work on 25 IPOs and have restructuring firms interested in you. But you know this. Ha.
Should’ve been more clear, right now working in a firm that does LevFin/Rx. Was curious how to spin that to activist HFs more specifically.
Could easily spin for special situations with debt lite covs, liquidity challenges etc. but not sure how to spin for activist (if that’s even possible).
Challenge is doubt activists will approach E&P/Coal plants, too much dictated by market pricing.
That is an extremely tough spin. You are right it won’t be very easy because your space is not ripe for that type of activity.
You may need to switch to another sector and get involved in hostile deals if you can.
This is easier said than done as you already know.
Wish there was a better answer but activist funds in X sector is quite difficult. Especially if you’re in a sector where activists don’t really get involved.
1) How do you keep the conversation interesting when you have stopped watching television/reading pop news and focused on things that matter(self improvement, finance etc.)? Dates so far have focused on talking about the girl instead and stalled each time she references pop news, politics etc.
2) More effective first dates leading to second date (or notch): drinks at night on Thursday/Friday/Saturday, or coffee on the weekend? Stats have been mixed so far.
3) What’s the more effective answer for a early 20s banker to the question “What do you do?”. Nonchalantly drop the ” I work in investment banking” or go with the sarcasm “Sweep the floors at flash dancers”?
1) your conversations should surround your life experiences.. Travel, events, etc. Pop culture is what every other dude is going to talk about so she will lose interest in five seconds. Also, you should be leading the conversation so we have no idea how she is bringing up random TV shows. That is a terrible sign.
2) Coffee is useless. Kill it.
3) Neither. Get in shape and just say you’re a personal trainer. Sarcasm is one of the worst forms of humor so try to avoid it on dates 99 times out of 100. (you can insert any other profession you like but FFS do not say you work on Wall Street. Waste of your time and she will think you’re boring)