5 Tips From The Wall Street Movie That Is Applicable In An Investment Banking Career
The movie Wall Street Was released in 1988 and then it was followed by a sequel in 2010 – both were successful worldwide. Most of the Wall Street investment bankers and stockbrokers are actually fans of the film. Some of them have also been modeling their career based on the famous character Gordon Gekko. The film may be a fiction, but you can actually learn from it and apply these tips in your investment banking career.
Here are some tips from the movie:
1. You have to start somewhere
Of course, you need to start from somewhere, and you can start by acing the interview for the position you want. Arrive with a good resume, show them your technical skills, and having a solid internship will give a positive impact. Avoid the typical interview mistakes such as the weak handshake, rambling on and on about yourself, no questions asked at the end, not showing motivation, and appearing as if you have no interest in investment banking.
Try to come prepared with the answers to the most commonly encountered questions during interviews. If you are asked about some technical question, voice your thought process out loud. This will show your interviewer exactly how you think and what makes you different from the pack.
2. Battles are won before it is fought
In the movie, Gordon Gekko is a man that always has a strategy. This is exactly what you will need If you want to be successful in investment banking. Take into consideration the appraisal for bankers that happens at the end of each year. The process usually goes down by having 10 people you worked with throughout the year asses you. They will evaluate your integrity, reliability, transaction performance, teamwork skills, and technical skills.
Afterward, the senior bankers will decide who gets fired and who will get the bonus. As an investment banker or analyst, it is important for you to know a few tricks of the trade. First, try to perform above expectations in the last two months of the year, since your workmates will most likely recall this time, especially since they will have short term memory for working in a high-pressure environment.
3. Sheep can’t beat the S&P 500
It is common in the industry to think “buy low, sell high,” and as simple as it sounds, it is actually not. As a matter of fact, the legendary Gekko advises this for the trading and investing world, as well as business and finance. In general, you are not going to beat the S&P 500. You have to get the modeling task right to pitch those sticks successfully if you just follow the pack.
4. Want that internship? Try calling 59 days in a row!
As much as possible, work hard to get the best internship and make sure you make the most out of the experience. In 2014, Forbes shared that the investment banking company Evercore Partners offers a highly-selective 10-week gig to around 30 to 40 interns. They received training in divestitures, recapitalization, joint ventures, restructurings, and so much more. Northwestern Mutual has ranked second in the magazine’s chart, but there are plenty of options for you to explore out there.
5. Greed photographs well, but it doesn’t mean it’s good
Take note that even the risk of getting caught is surpassed by the reward of dabbling in insider trading – do not allow this sharp cost-benefit curve fool you! Hedge funds often engage in non-transparent trading practices that can help them earn massive amounts of money over a small price fluctuation. But gaining social tractions with a small and single insider tip-off usually helps motivate insider trading.
Based on Materials from FinanceWalk
Photo Sources: IMDb, Evangelicus, Imgur