Do You Know How to Break Into Wall Street?
Thursday, February 11th, 2010Breaking into Wall Street doesn’t have to be difficult, as long as you go about it the right away.
First off, you don’t need to be the next Einstein to get in.
This is a big misconception.
Yes, some math is required in investment banking - but it’s very simple and doesn’t go much beyond basic arithmetic.
Rather than obsessing about learning advanced financial modeling, focus on the fundamentals and what you need for interview prep.
Investment banking is much more about perspiration than inspiration - as long as you’re a hard worker you can pick up everything you need along the way.
Next, don’t assume that you need a 4.0 GPA at Harvard to break in.
That certainly gives you an advantage, but people from less privileged backgrounds get in all the time.
So what do you “need” to break in? For one, you need to be much more aggressive with your networking efforts, contacting alumni and cold-calling extensively.
And you can’t go for Goldman Sachs and Morgan Stanley if you have less-than-stellar credentials: set your sights lower.
Going along with that last point, don’t assume that bulge bracket investment banks are the only banks out there.
Your odds are much, much better if you go for local boutique firms rather than bulge bracket investment banks.
So think about starting somewhere small, spending a few years there, and then making the jump to a larger bank.
The day-to-day work at large investment banks and boutique firms is similar - but at large banks you get a better brand-name, and you can move to a wider range of private equity firms and hedge funds afterward.
Those factors are important, but it’s far better to get into a local boutique rather than no investment bank at all.
So do what you can, and fix it afterward.
Finally, don’t assume that certifications and exams will help you break into Wall Street.
Is the CFA useful? Will the CPA help you? Should you go for a Bloomberg certification?
No, no, and no.
These exams are just excuses to be *active* rather than *productive*.
Investment bankers care about your work experience and internships, where you went to school, and how much networking you’ve done… and not much else.
So stop studying for the CFA and start networking and finding solid internships.
Riyan Richter is a Contributing Author to several finance-related news and educational sites, including Breaking Into Wall Street and Mergers & Inquisitions. He writes about economic news, the job search, career issues, and networking.
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