What You Don\’t Know 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.
You do need some facility with basic arithmetic, but nothing you do goes too far beyond that.
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.
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.
You certainly have an advantage if you’re at an Ivy League school and you have a 4.0 GPA, but don’t let that stop you: people from different backgrounds break in all the time.
You do have to be much more aggressive with your networking efforts and start building relationships earlier on, but you don’t ”need” a 4.0 GPA to get in.
And you can’t go for Goldman Sachs and Morgan Stanley if you have less-than-stellar credentials: set your sights lower.
Misconception #3: Goldman Sachs is the only investment bank in existence.
Aim for local boutique banks, and your odds are much better because there’s less competition and it’s easier to stand out.
A much more sensible plan: start somewhere small, spend time there, and then go to a larger firm.
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 are important, but it’s better to get into investment banking anywhere vs. getting no results at all.
So do what you can, and fix it 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.
Taking these exams keeps you busy, but busyness does not equal productivity.
Investment bankers want to see solid work experience, a good school, and that you’ve done some networking – not exam scores.
So take all the time you would spend studying for the CFA and use it for finding a good internship or networking.
Riyan Richter is a Contributing Author to several financial news and tutorial websites, including Breaking Into Wall Street and Mergers & Inquisitions. He writes about economic news, the job search, professional issues, and networking.