What They Never Told You About Breaking Into Wall Street
When it comes to breaking into Wall Street, most people have a lot of misconceptions on what you actually have to do.
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.
Learning basic financial modeling can be helpful for interviews, but don’t bother with the advanced stuff until you have an offer lined up and you’re ready to start working.
If you can burn the midnight oil, you’ll succeed in investment banking: it’s more about doing lots of simple tasks well than winning a Nobel Prize in quantum physics.
Misconception #2: You can only break in if you have a 4.0 GPA at an Ivy League school.
That certainly gives you an advantage, but people from less privileged backgrounds get in all the time.
The difference is that you need to network and be far more aggressive if you’re coming from a lesser-known school or you don’t have solid grades.
Also, don’t aim for the cream of the crop: rather than going for Goldman Sachs or Morgan Stanley, target smaller firms.
Going along with that last point, don’t assume that bulge bracket investment banks are the only banks out there.
Aim for local boutique banks, and your odds are much better because there’s less competition and it’s easier to stand out.
So think about starting somewhere small, spending a few years there, and then making the jump to a larger bank.
The work you do at large banks and small banks is similar, but the difference is that you’ll get a better brand-name on your resume and you’ll be able to move to a wider range of companies, private equity firms, and hedge funds after going there.
Those factors are important, but it’s far better to get into a local boutique rather than no investment bank at all.
Start where you can, and then move up afterward.
Misconception #4: Certifications and exams help you break in.
Is the CFA useful? Will the CPA help you? Should you go for a Bloomberg certification?
No, to all of the above.
Just because these exams require a lot of time doesn’t mean they’ll help you.
Rather than exam scores, you should focus on what investment bankers actually care about: work experience, your school, and your networking efforts.
So stop studying for the CFA and start networking and finding solid internships.
Riyan Richter is a Contributing Author to several financial news and educational websites, including Breaking Into Wall Street and Mergers & Inquisitions. He writes about economic news, the job search, career advice, and networking.