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.
I see in your “20 Rules for Your Twenties” post you recommend waking up early. Any advice on how to do this consistently? I find that when I get up at 5AM I get a lot more assignments/studying done and I can use those accomplishments as momentum to accomplish more throughout the day. Trouble is I’ll end up working until around 11PM or midnight and then be over-tired if I try to wake up at 5AM the next day. Also, since I got everything important done the day before, I have no motivation to wake up early, so I’ll usually end up sleeping in way too late. Any advice on how to wake up early everyday?
Instead of focusing on the waking up part you should focus on the tasks part.
Write down a full week of schedule and stick to it. You should have a daily planner.
The reason why you don’t want to wake up early is because, as you correctly stated in your post, you have nothing to do.
Add more to your to do list and set up ~6-8 hours of sleep.
There are millions of things to add but go ahead and do things you like
1. Internships/jobs
2. School work
3. Taking up a new sport
4. Reading
5. Coming up with business ideas/attempting to start one
There are millions of things to do everyday, it sounds like the best course of action for you is to set up a daily/weekly planner.
Really like this. I struggle to find ‘tasks’ to do?
School work doesn’t take up that much of my time and nor does searching for jobs/ internships.
How do you genuinely fill an entire day with tasks, let alone every single day?
I understand there is obviously an entire world out there and I only know the small segment of what I do everyday. Call me unimaginative but I am struggling to even think of tasks to do. I appreciate this is a problem of mine and am therefore asking for ideas/ help w/ this.
Well we have 5 examples right there.
If you’re in college you should have at least 1 internship or job
A) choose a job to give you some side income
B) choose a job that will help you get a better first time opportunity
If you are a freshman choose A, if you’re a sophomore or Junior choose B.
That’s already 10-20 hours a week.
If you choose A you should reinvest that money to learn skills you find valuable. If you believe your game is bad learn how to sing, learn how to play an instrument, learn how to dance etc. Up to you.
That’s just getting started but most people do nothing in their downtime during college = waste of both talent and life opportunities.
what do you guys think about municipal bonds as an investment?
Not sure if you’re trolling? We answered the same question above.
A muni bond is in the old money/low risk category so it would be good for people with either lots of capital (trying to preserve) or people who can no longer afford to take risks (old)
Not good for appreciation since the rates today are so low.
Stocks/junk bonds = higher risk higher growth
Munis T-bills = low risk low growth
Depends on how much money you have. If you’re broke and young you’ll never obtain wealth with t-bills or munis.
Take a year off to ‘find yourself’ is an idiotic move no doubt, but how about 2-3 week long road trips?
Recently lost my job, realized its a pretty inflexible career, so I’m switching to something where it will far easier to jump companies and industries. However, in the meanwhile, I have 6 months of unemployment (which I’m using to learn skills that I can market) and figured now would be the best time to take the road trip of a lifetime. I’m 25 and my rent/living situation is really low cost so it wouldn’t be too much of a financial hit… I’ll be camping mostly anyway.
Thoughts on whether I am making a financial/career blunder and wasting my resources at this point, or can this be chalked up to a fantastic opportunity for an interesting life experience?
Sure 3 weeks is fine.
Use the 6 month rule. In 6 months you need to have income, no matter what. Generally after 6 months they assume the experience/resume is stale so you want to have something lined up.
Take a couple of weeks to have fun, send out feeler resumes during the end of the trip and then get to working on something meaningful.
what are your thoughts on cd ladders and money market accounts?
Equal to cash, this is an emergency fund and has worse returns than bonds.
Hey. I absolutely love the information you provide and please continue to keep up the hard work. Recently i really liked the post on the international playboy lifestyle and look forward to traveling once finances are all shored up. However, in the meantime can you guys talk about places to spend your time in the NY based on age or wealth accumulation. I know as a 24 year old the roi on trying to party in the meat packing district might be low when you could be doing better at NYU bars.
So in your opinion where should people be focusing their efforts if they want to maximize their success with chicks? Thanks for the help in advance.
This is covered a few questions above you in a TL – DR format
1. Live with roomates
2. Stick to lower east side
3. Do not go to high end clubs, bars or lounges – too expensive
Your time should be spent on 1) day game, 2) lower east side.
How do you decide which posts to be on WSO, and which ones to put on this website?
Wall Street only posts go on WSO and on the blog as well. We mix it up though so to be honest it is a bit random, we have several wall street posts that are also not on WSO and have posts on WSO that are not on here.
If the post is not related to Wall Street (ie: personal finance or Game/Life) it only goes on the blog.
What’s the fastest or best way of building leadership skills?
Side question: how do you get over deep personal insecurities over trivial things such as (genetic) facial flaws?
The only way to improve leadership skills is simply take more responsibility.
Increase what you are in charge of and you’ll have to increase leadership capabilities by default/definition.
The second comment the answer is always the same “Can I control it?” If the answer is no then you shouldn’t spend a split second wasting thoughts on it.
This is like asking “what is it like to be taller”… Well you’re not getting taller so don’t waste valuable brain cells worrying.
Worry is the seed of fear which will do nothing but bring you down.
Most worries, the vast majority, are not real because they cannot be controlled. Make sense?
Thanks, all of that makes sense – appreciate it!
No problem, we have a post literally titled “start talking to yoruself today”.
In your case when you catch yourself worrying ask “Can i control it?” and you’ll quickly realize you’re being irrational.
Will take a few months and you’ll see a significant decrease.
Already seeing myself thinking of this now… puts things into perspective. I’m thinking the flip-reverse works too. If the answer to “can I control it?” is “yes”, then I know I need to get off my ass and do what needs doing.
Curious, who/how did you learn about these real-life truths? Were there any comparable resources available before?
Lots of hard work and trial + error.
We’re working on a real interesting project, not sure how long it will take to finish but it will save a lot of people a great deal of headaches over the long-term.
Stay tuned as always!
Guys what’s your age range? You guys sound so experienced yet young.
Aggregation of writers. The only thing we are willing to disclose is that you need at least 3+ years of experience to contribute an article. The reason why… most people quit after year 3 and never get promoted/move to different industries.
Makes the content much more helpful as well. If you know anyone who has been on the Street for several years we’re happy to let them contribute if they have a great post idea.
I know you say the opinion of a stranger shouldn’t matter – and I agree.
How do you deal with girls that you are currently talking to or have already got with and caring about their opinions?
I realize that caring about one or two girl’s opinions that you’re “getting with” floods over in confidence into other parts of your life.
Thoughts?
Can you provide an example?
I’m in a MO position at BB but my Linkedin makes it look somewhat like im FO for the group – headhunter emails me about related position and asks me to call her – how should I prepare? If possible, would like to capitalize on this as a lateral to FO opportunity.
What is your current position and what is the position that you are trying to obtain? The only preparation you need is the spin since it is an introductory meeting.
Also, if your position is incorrect on linked-in it should be fixed because the headhunter will know immediately if your position is front office or not (unless it is a low-end head hunter).
Support for ABS group -> ABS Structuring
Even though that is still a bit vague, here are the main three points.
1) they will realize it is a MO position so they will have concerns surrounding your FO knowledge base
2) Spin your reasoning on how you already have the skills for a front office role
3) Use your stellar GPA/SAT to give them confidence in your brain power
That is how they will think about it so remember their fears are mainly these two points, will reiterate 1) knowledge of FO, 2) ability to do this based on brain/IQ/credentials. Be prepared on those two fronts.
Knowledge of FO:
Usually when you work with a headhunter they don’t tell you the name of the firm first, so you’re in a bit of a rut. What you should do is significant research on all types of Asset Backed Securities just in case.
Now that you have done that when you speak with them this is how it will work:
1) they will ask you your background. IE: Opportunity to spin yourself.
Give a high overview of your background and be succinct, you want to drop hints (be subtle) that you are also interested in any other types of ABS type roles. The trick? She is a headhunter so she likely has other ABS roles and you want to make it clear you’re open to all ABS roles, not just this one. If you are clear with your story and show that you have an understanding of many ABS type products, she will likely keep you in mind for other roles as well
2) Be sure to find out what type of ABS securities you will be working with. Based on your resume and your experience again it is your job to spin your experience in ABS security 1 into ABS security product 2 if that is the case
3) If you were ranked at the top (if there are rankings in your MO position) make it clear that you are not desperate to leave the firm but would absolutely leave for a FO role. This way she doesn’t send you MO roles you don’t want and also she knows you’re not afraid of being fired.
Hope that helps
How do you deal with insecurities? E.g. The amount of attention I get from women sky rockets when I wear a ball cap or winter hat while when I don’t have one on, I get rejected MUCH more (because of my big ears and large forehead). It is a true confidence killer and kills my game. I realize I cannot control my facial features, but what are some tips to help me work with this…
You say you know you can’t control it.
But do you believe you can’t control it. By the looks of it you simply say you can’t control it but you don’t believe it.
You on the inside are no different with a silly baseball cap on versus off.
Our guess is the baseball cap is more congruent with your entire wardrobe that is why you are getting better results with the baseball cap.
Try an entirely different outfit, not sure how your money situation is but create an entirely new look that would not be congruent wearing a baseball cap. You’ll get the same results. Your “flaws” are in your mind.
Example: If we started wearing baseball caps with a well tailored suit on, does that mean picking up girls in a suit is impossible? No. It certainly has nothing to do with the suit.
Ok. So I read yor entire blog and recommended investing books. I have learned that through having just money saved in the bank and not investing you are getting poorer. I made up my mind so I want to invest all of it and create passive income through investing it. I just don’t know where to go and how to get started. Who can I go to and with which investments should I start. I figured the best way to learn is through taking action. I don’t want to keep losing money through inflation. Any suggestions?
Did you read the books or simply look at the titles?
The books cover this topic very well.
My buddy and I couldn’t find a summer job, so we were thinking of starting an import gig by importing things like earphones, watches, knives, etc for cheap from China and then reselling them for a markup. What do you guys think about this?
We do not have experience with this, so unfortunately we cannot comment.
As noted in point 1 at the top of the page it would be bad advice.
I thought you guys did stuff like fixing watches? What could you say about it? My buddy and I were thinking of maybe taking up watch fixing in the future.
Ah miscommunication on our part.
Our fixing watches example was from a long time ago, ie: something a person in the age range of 12-18 should do instead of working minimum wage. Go onto Taskrabbit instead of becoming a wage slave at McDonalds.
The point of that idea was you never work for minimum wage. Meaning if you’re extremely young, you should learn a basic skill (service – time for money unfortunately) that you can do in order to avoid making $10 an hour.
In addition, if you do this you pick up some salesmanship which is much better than having no tangible skills from flipping burgers.
So we do not know anything about starting a legitimate repair business.
What is the average difficulty of getting an offer from a middle market bank that is not nyc based? Are there certain cities that would allow a candidate to have a better chance from a non-target? Any cities or firms that you would recommend?
There is a lot of debate about this, however, in our experience you are better off in the larger markets to break into the industry.
The resume screening process is exactly the same. Meaning that a person who is qualified in SF/Austin/LA/Houston/Boston/Chicago would be able to obtain interviews if he suddenly had to move to NYC.
There is a slight edge given to NYC because there are more opportunities there.
With that background knowing that you want to have the largest market it looks like this:
1) NYC = Huge market every single sector
2) Houston/Austin/San Antonio = Oil and Gas
3) Middle America (Illinois/Ohio/Minnesota) = Industrials
4) San Francisco/Los Angeles = Technology (SF)/Media(LA)
5) Boston = NYC light (there is a mix here)
Knowing each target market you should tailor your spin accordingly. As an example if you worked at Chevron doing some sort of Oil and Gas work, your spin is going to be much easier in Texas because there are more people who will say “well his resume isn’t perfect but he has experience in the sector we need help in”
If you have a cookie cutter finance resume, well you’ll be just fine in NYC because there are simply too many openings.
Thanks for the reply! How would you go about making a cookie cutter resume for KPMG Corporate Finance?
Unfortunately none of our writers work in KPMG corporate finance. In your shoes, reach out to people within the Big 4 accounting companies.
Hi, please advise tips on how to come across confident w/o being overbearing. Have an assessment centre on Wednesday (group tasks etc) (business consulting not IB) and after speaking to employees/ others I understand that it is important to come across confident but at the same time humble.
I feel I naturally take a leadership role in group tasks but I want to avoid coming across too heavily. Your thoughts/ suggestions most welcome.
Without knowing the job you are searching for we cannot answer the question our answers surround jobs in the tier 3 and above in this post:
http://wallstreetplayboys.com/navigating-wall-street/
Sometimes I have amazing nights… Feel like I can get any girl, don’t care about anyone’s opinion.
Some nights I get trapped in my head and feel socially paralyzed… What are your tricked to combat those nights?
This usually means your thoughts are elsewhere. There is a saying that goes along these lines:
“when in motion stay in motion, when at rest, rest all thoughts”
http://wallstreetplayboys.com/stagnation-is-death/
Essentially, when you go out to run game, you need to turn off your brain and just stay present with your surroundings. An off and on switch so to speak.
If you are able to have “on” nights, take notes of why you feel on and try to mimic them.
This is state control.
http://wallstreetplayboys.com/how-to-advance-your-game-state-frame-and-success/
I have read your post on why nobody cares about a PhD. However it was not a generic pumped degree, it was absolutely owned and I came out one of the top in the field…and am bored now with it. I have been writing for Seeking Alpha for a couple years, ~50 articles. Is the history of kicking ass as well as some non-university financial experience valuable enough to get me onto wall street? I am 26, making ~80k salary, + 10k side business (online store). Saving ~50% income because I live cheap. Goals are financial freedom asap, being in epic shape, and girls.
I have ~60k in stocks, where around half are pretty conservative DGI stuff, and the other half more risky tech or contrarian stuff. Should I say fuck it to the more conservative stuff on the hopes of achieving better returns?
1) Wall Street. Your best spin if you already have a PHD is find the niche. We do not know what your PHD is in but lets make an example.
Lets say you have a PHD in petroleum engineering… Your best bet is to apply to companies in texas because you can spin your 1) vast knowledge of oil and gas and 2) your experience writing about stocks to knowing “enough” to get you an interview.
Your other option, unfortunately, would be an MBA. An MBA would give you a lot more options, but this is entirely up to you on if you actually want to work on the Street.
2) We do not give individual personal finance advice that involves picking securities, we talk in broad strokes and we have approved products (in the products section) that will answer your question. Overall, simply dollar cost average as noted in our S&P post.
Thanks for the quick response! One other question: I know your thoughts on taking a year off (its BS), however if one has adequate savings, and it is meant to devote yourself fanatically to a business venture, would you do it? I have mentors that I can bounce ideas off of, so I would not be going it completely alone.
You stated you’re 26, you should have more than enough energy to do your current job and begin starting your business venture.
Ideal move is 1) convince seeking alpha to allow you to write from home and 2) build your idea on the side.
If your idea is generating some money, then there is substantially less risk by quitting.
Should a guy worry about his sexual game? For example being the best lover a girl had and lasting all night in the bedroom so he can become unforgettable? Any tips on becoming a great lover?
To be honest it is not necessary. Simply enjoy your time, if you don’t know if you’re a good lover, then you’re definitely not. In that case feel free to study/practice. We recommend sticking with practice,
We have no books to recommend.
Is it a good idea to continue networking even though I have an IBD offer and still am a senior in college?
I.e. I’m interested in HF / PE. There are alumni from my school and from my investment bank that have gone on to PE or one that even runs a hedge fund (alumni). I am interested in learning about what they do day to day their responsibilities how they got to where they are and advice they may have for me. My thought it is that it never can hurt to build out my network but the fact that I haven’t even started my IB analyst stint yet and am telling them I’m interested in the buyside may be a huge red flag or they could go and tell the guys I’m working for that I never plan on staying there
Absolutely. There is nothing wrong with expanding your network, unless you come off unpolished or act brashly, they are not going torun to your bank and throw you under the bus.
That said, do not put the cart before the horse, performance on Wall Street is far from easy, particularly your first 2-3 years.
Network as you see fit, but remember, your performance at your bank will determine your future at this point.
Congrats on the offer!
What exactly is corporate finance? I’m an accountant trying to move up your hierarchy. Also, what type of people would I need to meet in order to get recruited for such a position? I’m currently doing taxes for hedge funds – would hedge funds have this type of position? Thanks guys
That is a tough situation. Generally the best accounting role to get into Wall Street is transactional services. Taxes are generally unrelated.
Corporate finance in the map refers to M&A and strategy groups at the bank. An example would be: Internal M&A group at Coca Cola
I’ll see if I can pick up some of that type of work then – thanks.
When investment bankers are making a pitch for a certain company to acquire another strategic partner, how do they come up with the synergy numbers?
We have a post coming on this in the future.
1) depends on the industry
2) depends on size
Example: if you buy a tiny company, the synergies are likely revenue based because the small company now has a large sales force to sell their product.
Example 2: if a company is large but is operating at a losses, it would likely have more cost saving synergies
This is where all the *magic* happens so to speak.
Would bankers consult third-party consultants for these numbers, or will they use an estimate to get synergies? If they were to use estimates to get synergies, what are some typical assumptions made towards synergy estimates?
No the bankers do their own work. Seller of the company works with his bankers on the model, buyer of the company works with their bankers on the model.
Then you agree to a price.
Naturally the seller tries to assume higher synergies (so they can sell the company for more) while the buyer tries to argue for lower synergies (so they can argue for a cheaper purchase price)
There are no “typical” assumptions. It is a case by case, sector by sector specific situation. This would be equivalent to saying “what is a the weather like in a typical city?” You have to know the region, climate etc.
Make sense?
Agai. We will have a post on this in the future. Stay tuned!
What if the investment bank was representing the buyer, and was making a buyside pitch? How would the bankers come up with the synergies then as they probably would not have access to the target’s numbers?
Excited for the upcoming posts. Keep up the good work.
If it is public to public, equity research reports have financial models to give a proxy (ie consensus estimates). If it is a private company then the entity likely has limited information and would be more strategic in nature until the deal was engaged.
There are also paid for private sources that do disclose some numbers such as “estimated” full year revenue. This depends on your industry of course.
I started going through your other reading lists. What can I do to improve reading focus and retain most of the information that I read? You guys sound sharp. I want to be mentally sharp too.
In our opinion:
1) diet & exercise is first, we have a post on diet
2) supplements we suggest fish oil (linked in our approved products)
3) Maintaining a happy/positive mood – Impossible to think when stressed/unhappy, you have too many things on your mind
why do you guys don’t like housing/rental income that much? I know that it’s a lot of work so in a way it’s not really passive income but what are your thoughts on why you don’t like it? Thanks for everything.
Cliff notes here: http://wallstreetplayboys.com/dont-buy-a-home-as-an-investment/
Will have an update in the future.
I saw this question was partially covered before but my situation is a tad different.
I work for a small RE company both as an attorney and in a business capacity. I have always had a strong interest finance (Business undergrad; finance, securities & accounting courses in law school) and have come to realize that this is the field I want to and should be working in.
My grades in undergrad were near perfect and I want to a top 5 law school. Also, I have been teaching myself financial modeling and general finance from the many great resources online. I have no problem starting at the bottom and paying my dues.
Simply put, is it a waste of time unless I have a great network? What strategy would you suggest? Are recruiters a good idea? Will I have a better shot approaching PE firms and hedge funds?
I know I am asking a lot of questions but I am at a bit of a loss and would REALLY appreciate some clarity.
Thanks in advance.
Your best bet would be targeting investment banks that have groups specific to your sector “RE” is a bit vague. Then you can spin your experience as transferable.
Unfortunately, all of your self studying is quite literally “all for nothing”. If you want to add finance caliber information to your résumé ou’d have to have the cookie cutter items to check off the box. Wall Street is risk averse, no reason to take on a candidate who “might” know the material versus “does know the material”.
They way they know if you understand the basics would be:
1) several finance courses at a notable university
2) CFA level 1.
Once to clear one of those hurdles it gets a lot easier for the interviewer to feel comfortable with your basic understanding of financial modeling.
We have stated several times, financial modeling courses are a hoax. A complete joke. They train you when you are hired so there is no point in taking them.
The course they make you take when you obtain an offer is called “Training the Street”
Thanks, that is definitely a clear answer. And luckily, the modelling tutorials I studied were free.
Last question, thoughts on cold-calling/e-mailing for informational interviews and connections?
We covered this within the blog so you can search around but basically:
1) friend of friend is best
2) Linked-in is next
3) Cold emails should be no longer than 3-4 sentences or else you are wasting their time
Do you have a template you recommend for a cold email? Break into IBD type template?
Please use the search function, but here is one that has a large outline on how to recruit.
http://wallstreetplayboys.com/stand-out-as-a-non-target-recruiting-into-wall-street/
Great blog.
I’m curious to hear your thoughts:
I interned on Wall Street during undergrad and then took a consulting gig upon graduation at a well-known (albeit not MBB) firm. Here’s my dilemma: I am compensated very competitively and enjoy the work, but I am in an extremely laid-back group and have a low-stress 9-5 job (no travel, no late nights, etc.). By low-stress, I mean that I am only really “working” ~4 hours/day on average. This is typical of my group. I’m concerned that I’m not garnering enough adequate experience to advance my career. However, I’m wary that other options for my skill set will be 2x the work (i.e., 80-100hours, getting ass kicked) with roughly the same pay (I’ve looked into comparable positions in IBD/consulting). What would you do in my situation?
We have no experience with consulting.
If you enjoy they job that is fine, we would say the best thing would be this:
Make sure you are learning new skills
If you are not obtaining valuable information/skills over time, then you should leave. If you’re constantly learning, then it would be a great career.
In your Wall Street Fashion post you recommend buying no more than six separate trousers. Why? If you wear a suit to work wouldn’t you just come in early, hang up the suit jacket and wear the trousers that come with the suit? Don’t understand why anyone would need separate pant trousers.
Also, did you guys ever do a separate post on buying suits?
1) If you take care of your clothing you don’t need much, our point is to avoid being like every other analyst who buys 20+ shirts and 10+ pants simply because they can, wasting money on low quality clothing. If you want to buy more and have a lot of resources, feel free of course.
2) Separate pant trousers are great, in fact when you buy a nice suit they usually offer for multiple pairs of pants because they get damaged from use faster than a coat.
3) No we have not done a suit post yet. We are thinking about one but there are basically two types of suits going out suits and work suits. Ideally you can get one that fits both but it is tough.
Would definitely like to see a post on suits. I’ve never bought a nice one, do you have any suggestions on where to buy a suit where I can also get the additional trousers for $50-$60 extra? Also, how much should I budget for suits?
Sure will add to the list.
Currently have a large backlog (8+ posts already) so will have to wait unless we get a lot of requests for the same topic.
EG: buying extra trousers, they will allow you to purchase them when you pick up your first suit (they should).
Overall, based on your name we are guessing this is for an investment banking analyst role. In that case spend as little as possible, it will go through a lot of wear and tear and no one expects you to have high quality items. In fact having high quality items would be a ding.
online banks vs regular banks? which one do you recommend to put your savings and earn the most interest?
Online money market accounts have higher savings rates.
What’s your take on Neuro-Linguistic Programming (NLP) training? Read your posts on affirmations, but curious what’s your take on NLP? Any good resources to read more on NLP or tapes to listen to?
We recommend this Neuro Linguistic Programming NLP Techniques – Quick Start Guide for NLP.
For a quick look check out the post on “unlock your mind”
I know I told you this before but I’ll say it again. I have read your investing books that you mentioned and no I didn’t just look at the titles like you said however I still find myself confused on where to start or where to go. You hear about vanguard, etrade, scott trade, etc. but I don’t know where to start. I do know the difference between several types of investments though. Due to my son I would consider myself a safe investor that wants to attain financial freedom from having to work and only work if I want to yet create a automatic passive portfolio that generates passive income. I don’t know if you can do that with 100 grand liquid in a money market account. Any suggestions? FYI I’M not trolling…
I know I told you this before but I’ll say it again. I have read your investing books that you mentioned and no I didn’t just look at the titles like you said however I still find myself confused on where to start or where to go.
Find the lowest cost brokerage and dollar cost average into a broad ETF.
This is covered in the recommended book. If you are looking for a specific broker we would suggest choosing one that will lower your costs the most (dependent on how many times you will be buying) so we cannot recommend one.
what did you mean by today’s tweet that if you want to know that you have game ,when you walk around with your girl people should stare and be shocked. Do you mean as how hot she looks or how good and in shape a guy looks?
Yes she should be significantly better looking than you.
Strangers should be making excuses “he must be rich” “he got lucky” “he is paying for that” “he is…”
If people aren’t surprised then there is a problem.
what do you guys recommend for preventing grey hair or reversing it? what about reversing male pattern baldness? You always talk about looking your best. I agree. Any suggestions?
Reversing baldness/grey hair is tough, the best way to naturally prevent it includes.
1) making a natural shampoo (nothing store bought) use coconut oil (google natural home made shampoos)
2) wheat grass. For one reason or another juicing wheat grass has decreased grey hairs
Good luck!
I know that you are against buying a home. I read that post however after taxes, rent is the second biggest expense in this country. What do you think about buying a condo or what’s the smartest and most economical being a renter of an apartment or buyer of a condo?
We are still against it. Essentially you lose freedom and have to take on the costs
1) Depreciation expense
2) you are now responsible for all repairs
3) you are now immobile and cannot up and leave if you are let go or have an opportunity in a different state
But for condos don’t you pay maintenance and that takes care of repairs? Plus if you pay the whole price you don’t have to pay rent just maintenance and taxes? If you are let go and have to leave you can rent it out? Rent is getting crazy in NYC. That’s why I’m asking.
HOA fees are generally for the building, shared walls and other accommodations (ie: does not take care of internal repairs). If it is for your entire apartment then you can run the math.
Again we don’t like home ownership unless you are 100% certain you are going to live in that city for the rest of your life and you get a great deal.
When making company profiles for pitchbooks, what should be included in the company profile slide?
This depends. General guidelines
Public Company:
1) Company description
2) Price volume chart
3) Valuation current multiples (summarized comp sheet)
4) Executives and Board of directors summary
5) Overview of their products
6) Balance sheet dynamics
7) Income statement dynamics
Simply put the profile will reflect what you are trying to pitch. If you’re trying to pitch a debt raise the items you show will be more balance sheet specific showing they can take on the leverage. If it is more of an M&A pitch you would show more income statement numbers, and show that each of these companies would be a good fit for a “sale” or a good fit to be a purchaser etc.
Private Companies:
1) Company description
2) Executive and board biographies/overviews
3) Funding (if they have raised money how much and who invested in them)
4) Products and services
5) estimated revenue/employee count
Private companies are usually shorter and more to the point because the information is limited. A Public company profile is usually a full page (can be much more) and a private company is unlikely to eclipse a page (always exceptions). But essentially public profiles are larger than private ones.
Calisthenics or weight training? what’s your pick? if you don’t have access to weights can calisthenics be ok?
Unfortunately no experience in calisthenics.
How do you meet girls when moving to a new city, with 0 connects there, working as a first year IBD analyst?
Sure we have covered this in the past. Due to limited hours to meet people your best bet is to dedicate Friday or Saturday night on a consistent basis to going out.
Lower east side and the NYU area are good for your age.
Is it OK to use a past crush as motivation? It was a genuinely special girl and I missed that opportunity. I don’t expect to ever see her again, but is it OK to use that one experience as motivation to succeed in life? Every time I think about it I get a surge of motivation to not miss other opportunities… but if you don’t think this is a healthy motivation to have, then let me know.
Tough call going to say you should use it for motivation only if you are not dwelling on the past.
What this means is that you should not live in the past. Simply remind yourself as such:
“Last time I didn’t do X now I regret it, I won’t do that again”
versus
“I feel so bad i missed out on such a great person”
The first one makes sense, the second one is living in the past. Learn from the mistakes and move on, there are billions of them out there.
OK, thanks. I definitely thought the second one before. Now it’s so far away, it’s really just the first one from time to time. I think everyone has their own version of the first one to learn from though (girl-related or not).
Unfortunately, it sounds like you do not have enough experience yet to realize that they are all the same. Literally all of them.
From the educated ones to the uneducated ones, to the blond ones to the brunettes etc.
You simply need to increase your experience level and you can reflect back and see how she was really no different than the rest.
Haha… I can tell you know what you’re talking about, you “read right through me”. I have no excuses, I’ve just held off for so long that it feels so awkward and unnatural to go and do it. So I don’t. I KNOW I should, but I’m too much of a pussy with girls so I just work instead. This really has to change.
As they say, “knowing is half the battle”!
Originally from the east coast, will start in the Midwest come July. How would the girls differ? What are your experiences with midwestern girls? What are your ways of approaching Midwestern girls?
Pretty much the same method, again all women are the same.
The difference is just the vibe of the city, by mid-west we are guessing you mean Chicago.
In that case, it is simply a more relaxed version of NYC and you’ll have a wonderful experience.
What are your takes on direct vs indirect approaches during the day time? Based on your personal experiences, what have you guys found to be effective opening lines?
If you are walking down soho during the day and you see a nice 10 passing by with earphones what’s the best way to approach her to start a conversation with her and then game her? I usually say hello or good morning to every single one that passes by. If she replies and smiles back I keep on with the conversation. It seems like NYC women are not so friendly and see you as a creep when you try to start a conversation. Any tips?
Sounds like you need to dress better. This also answers the post above.
The better you look the more you can get away with.
Direct versus indirect is beaten to death, simply use one that works better for you. EG: do 30-40 indirect then do 30-40 direct and see which one gets more positive reactions. Roll with it from there.
what’s the best way to save on rent while you live in NYC so you can save most of your money and go out to practice game on girls? Rent in NYC is out of control. Not everyone has a rent control apartment.
Not sure what you mean. The only thing you can do is find the best apartment for your location.
1) search for rent control if possible
2) live further way and commute if cash is tight
You have no control over the rental market.
What’s your opinion on the current stock market valuation? Do you think it’s highly inflated and we should expect a modest correction in the near future?
We do not provide valuation calls or stock/index calls on this website.
If you prefer a high level view of investing we have approved products on this site which summarize our views.
Just have a question on networking. I’ve read a lot of your articles as well, and to what I believe this hasn’t come up. Your advice is to make others around you feel comfortable and happy and think about giving.
As a bit of background, I work in equities research and am 26. I love it because I get to learn about whats happening in the world. I find it difficult to separate myself from work because I always think about finding investment opportunities from the things I learn about.
I find it difficult to talk to people about things that aren’t to do with investing, travelling or current affairs because I get bored and am curious how things around the world work. I like sports but can’t maintain a conversation on it past 5 minutes.
So whats wrong with talking shop? When you network with people, what should you talk about? Plus a lot of people my age probably don’t want to talk about what I’m interested in.
Also I’m meeting some investment greats this week such as Marc Faber and Jim Rickards. I’m a little nervous, i respect the work from these guys so much.. when your trying to build a relationship with someone with significant reputation, how do you do it? why would they want to speak to you. I’m interested to explore more of their insights on their work and ask for career advice but not sure if I can do this.
There is nothing wrong with talking shop in a professional setting. Most Wall Street types are type A, introverted and have the same interests.
The problem is three fold:
1) how are you any different from any other equity research employee? Everyone has the cookie cutter 1 page résumé great school etc.
2) how can you make a connection. Repeat a connection. As much as a higher up will love to see a hard working up and comer, the #1 ding in interviews seems to be “personality doesn’t fit”. All this means is the candidate did not make any connection with the interviewer
3) this is a Wall Street and game blog. When we say “never talk about work” that is referring to game
The networking question is quite simple actually. How did you get your job? Are you ranked #1 in your group? Are you the highest paid person in the office?
If you are you have zero to worry about. If you’re not in the know then you should work internally to sell yourself and then bring those skills over to the networking side of the table.
Essentially a good networking (profession basis) person will do this
1) intro quick credentials
2) quick asking them about their lives
3) listen intensely from the answers to find a place to make a connection
4) change topic to that connection point (establish rapport)
5) find out his opinion and agree (spin it)
6) ideally get a joke in there from the aforementioned conversation
7) get a phone number and email
Instead of emailing generic slop, you email regarding your real connection so the chances he responds is 100x higher.
Wash rinse and repeat. Networking is essentially sales.
Nice! Thanks for the handy framework
1. Do you recommend any sales books that explains this stuff in more detail? / Are really good?
2. What about being in a social environment. Can you talk shop? i mean, it is what i’m interested in.
3. What are some effective ways of building rapport. I mean, what if your talking to someone that you have no idea about their field. for example, commercial law or program engineering? whats the best way to build rapport with people that are outside your ‘professional circle’
Cheers!
1. No sales book to recommend, the best way to practice sales is to improve social/networking skills and to of course, work on actual sales. In your case, again unless you are 100% certain you are top tier and top ranked, you should work on your internal sales. As they say “Money doesn’t lie”
2. No. Will reiterate. No. You’re going to make people bored and uninterested in you. If it is work related feel free or a work environment, again feel free. People want to be entertained, they do not want to be informed. Better to give them a dose of fun, see sales, to get their emotions running and like you because of your presence.
Everyone knows at least on person who is “that guy”. When he walks into a room everyone is happier to see him and cheers. You want to be that guy, not just a typical person in the room. That is the difference.
3. Sure, this is related to number 2. The way to avoid talking about boring things (economy, work, career etc.) is to have interesting hobbies and activities. While we applaud a hard work ethic, if you cannot find 10 hours a week to dedicate to exploring new things you will end up losing all of your charm and charisma. The number one suggestion we have is make a list of things you have said you will “never do”, examples include public speaking, dancing, art, playing an instrument, competing in a Triathalon etc.
Now you have more interesting things to talk about and maybe you’ll like them. Now when you meet people it is significantly easier to build rapport/interest because you have a higher chance of having something in common. If your entire life is simply an excel spreadsheet the chances of being promoted are generally slim.
Cheers! can not thank you enough!
regarding my career because i’m not top tier or ranked number 1 but have a plan to get there which I’ll run by you another time. In mean time, will work on networking first!
Is there a caveat to this though? I mean, look at all the super successful people in life… if you want finance-related examples, take Leon Black, Kravis, or any of these guys. Many entrepreneurs too. I doubt these guys set aside a few hours each week for dance classes or painting pictures?
When you talk about success there is always caveats because everyone has a different role model.
Example: If someone is worth $20M but has zero friends, has no ability to land a girlfriend and is fat… Is that successful?
Most people equate success entirely with money, that is not what this blog is about.
Money is a huge part of it, but certainly would not choose to be socially handicapped for a few hundred thousand dollars.
Simply put, go and find people you look up to and emulate them. People can choose any hobbies they wish, just don’t be a type A boring Wall Street guy.
In addition to the follow up question above regarding networking, I want to give back to the community an say thanks.
Above, a poster wrote – “do you have any tips or books on how to improve the sexual game”.
Read: Daniel Rose: Sex God Method…..—— this book changed my life when it came to sex 5 years ago!! It
you can download the pdf file for free on google. just type in daniel rose sex god method pdf
http://www.fichier-pdf.fr/2012/12/01/make-love-like-a-sex-god-method/make-love-like-a-sex-god-method.pdf
is the direct link – a lot of crap out there!
If you’re transitioning from an ops role to IB (never got offer for IB but did interview). How do you answer the question when it comes up about why you never went into IB, or if you have tried to interview for IB before?
You can say your resume was lighter then and only got to interview at “one or two” small investment banks and didn’t get an offer.
Make it a slight white lie. No one is going to check if you interviewed at 20 banks or just 1.
Simply say the pool was competitive and you only got 1 or 2 shots maximum and simply didnt make it past the “super day”.
Proceed as usual.
—
**Note the trick here is to make it very clear you would 100% switch to IBD without telling them you had hundreds of options. If you say you interviewed at 20+ banks they are going to think there is something wrong with you/your interview skills.
I understand that you guys are against marriage here in the states but why are you against kids? Are you guys afraid of growingold alone? Whats your take on growing old alone and not having a spouse or child take care of you when you get really old, fraguile and physically dependent on someone else?
1) Some of our contributors actually have had kids and may have kids. So this again is a personal decision. Many on the other hand have no interest and are aggressive in stating so (fun commentary and a different outlook on life)
2) This argument is insane (no offense). But this is how women speak when trying to tell you to “man up” or scare you into doing something. Everyone dies alone and if you do not believe this, spend some time in a hospital/nursing facility. Finally, there are practically zero examples of a husband and wife dying at the same time perhaps one out of a billion or two.
3) Again same argument as number 2. As a grown and successful man you should rely on no one. See “depend on someone”, you should not lean on anyone. When you hit old age and are physically weak you can use your income from large savings and investments to pay for a nice nursing home/live in nurse etc.
I never thought of point #2. All the more reason to not bother with a lifelong partner (if it doesn’t appeal to you). The kids thing for me personally is tough: “I only have one life; do I not want to experience fatherhood at all if I’m physically able?” I guess time will tell.
What do you guys tthink about rent to own property? They are popping up everywhere here in nyc. Is it a good investment to save money in the long run?
Rent to own math has an even lower ROI. So would stay away.
What’s future share price analysis for a pitch book?
Easy one. This is simply asking “how do you value a company”. The answer would be LBO/DCF/Comps etc.
Future share price analysis simply means in “X time frame according to Y method the stock should be worth $X”
The Interview Q&A covers the basic valuation questions you’ll receive.