Want to earn a salary as an investment banker?
Want to earn a salary as an investment banker? Well, it’s not that difficult to be one or is it, find it by yourself!
Calculate what is 12.5% of 64? Do it in your head right now!
If you got it within 6 seconds than think of yourself as an Investment Banker.
If you got it between 6 and 31 seconds, you’ll be fine.
If you got it between 31 and 60 seconds, huh! you need to do more.
If you took 60 seconds to 4 minutes and 59 seconds you’ll struggle on the numbers side, but don’t worry there will be plenty of roles for you.
If you took over 4 minutes and 59 seconds or 5 minutes and 14 seconds, forget Investment Banking as a career.
What I am trying to tell you is that you don’t need calculus, matrices, complex numbers, etc… You need to be comfortable, ideally damn comfortable, with the basics… if you want to be an Investment banker.
Let’s dig deeper.
It is a late night at 2 am and you are sipping coffee for that day. You see on a presentation that McDonald’s had $12 billion in earnings last year. That would go by the untrained person because MCD is a very large company and $12 billion is a very large number.
But it immediately catches your attention. That number jumps out of the page. Because you know that large fast food companies trade at about 25 earnings and that would mean that McDonald’s has a $300 billion market cap. But you know ExxonMobil is a $300 billion company and there is no way that MCD is larger than XOM. That $12 billion is wrong.
All this happens in your head in less than 30 seconds. You look up the correct number (it is about $5 billion), fix the presentation and continue.
Perfect number pitch allows you to quickly spot mistakes even if you had no sleep in the last 30 hours.
Tags: investment banker, salary