| Author | Message | ||
| Evan Jones (Jonesn)
Junior Member Username: Jonesn Post Number: 54 Registered: 8-2002 |
Nice car Bret. I couldn't talk my parents into the f-car, I got a Grand Cherokee instead (love it). I agree about the need to be in an unstable market to earn big. Risk is what keeps others out and more earnings to those who know better. | ||
| BretM (Bretm)
Advanced Member Username: Bretm Post Number: 3070 Registered: 2-2001 |
Yeah you can definitely make more money in investing, by default though it must be a somewhat unstable business to be in. If you don't become one of those top earners like we hear about, you'd probably be better off working for a normal company. At least that's how I look at it. I have a 308qv, check my profile for a pic of it. | ||
| Evan Jones (Jonesn)
New member Username: Jonesn Post Number: 46 Registered: 8-2002 |
Bret, I'm possibly steering in the same direction as you. Through my connections at Ferrari, I might use my finance degree to work for FNA or Lambo USA, both of which I think are in NJ. I can only imagine though, that the salary at FNA can't be nearly close to what I could make on my own doing commercial RE investment, in which case I could afford my own Ferrari/Lambo/Pagani. By the way, what f-car do you own? | ||
| Rob Lay (Rob328gts)
Board Administrator Username: Rob328gts Post Number: 2928 Registered: 12-2000 |
A little known fringe benefit of investment banking is that the skills acquired there make you a great candidate for being a company executive or board member. You can really make some major buck in those positions. Heck with it all, I recomend running a website for the fun of it! | ||
| BretM (Bretm)
Advanced Member Username: Bretm Post Number: 3057 Registered: 2-2001 |
One of my best friend's dad was part of a small group of Merrill Lynch real estate brokers or something like that, that actually invented their segment and approach to investment banking. That's pretty impressive, he's obviously old enough (in his 60s, so not old, but old enough) to have been around when this was occurring. Needless to say in the long run it seems to have been very good for him. Since he was one of the originators though I doubt he ever had to go through the out of college sacrifices that new people have to. I used to want to be an investment banker. From what he has said though usually you come out of college and if you do well and have some contacts (him obviously) you get started with them for very little. Then if you do well those two or three years they'll put you through a good graduate school. Then you come back and make the real big money with them. It definitely would be a cool career, but I would take V.P. of FNA, or any good spot in there, over investment banking anyday of the week. So yes, as ridiculous as it is, the first place I'll probably look to work after school will be FNA, maybe MBUSA (the Germans are very cliquish when it comes to promotions down the line though, and I'm not from Germany). I guess I still have another two years to decided what I really want to do, I have been thinking more along Rob's lines though now, enjoy the Ferrari, friends, girls, etc while I'm still young. | ||
| Manu (Manu)
Member Username: Manu Post Number: 575 Registered: 2-2002 |
Ditto what Ernesto said.... But to be honest MBAs coming in at assoicate level will not be starting on $225 so your undergraduate friend is either the worlds greatest graduate or is inflating his salary - or both. Interning is definitely the way to go - (I did it) and even during that internship I was earning (for a someone still at University) some excellent money. However salaries represent a very small proportion of your income whether you work in the IB side OR the trading floor (in any capacity) - the bonus is everything. Making no money = having no job. As far I as I know the market is soo bad that anyone still in Equities is actually lucky to be around - I have soo many friends working for the bulge bracket firms and they've said that graduate intakes are down to around 5 per division (in London) IF THAT! Even Harvard/Wharton MBAs are scrabbling around for jobs. Investment Bankers are paid VERY well - but they work their ARSES off - come in as an analyst and you are a slave to your associate until a couple of years pass - Rob is right..... | ||
| Jim Schad (Jim_schad)
Member Username: Jim_schad Post Number: 544 Registered: 7-2002 |
I guess it just amazes me how much money some people make yet I can't figure out a way to make an extra $50K to buy my f-car and pay off some debt. I am not a dumb guy, I know people with money adn I know some guys with entreprenurial minds. I just can't seem to get it all together at the same time! | ||
| Rob Lay (Rob328gts)
Board Administrator Username: Rob328gts Post Number: 2920 Registered: 12-2000 |
Just to show you how much, pick up the Wall Street Journal and in the back all the "tombstones" are Investment Banking deals. Although the number they show is the total deal, you can imagine how many fees there are on a $100 million dollar issue. I started working for a broker in high school and I wanted to be a trader or broker, but quickly learned at Babson that the place to be was investment banking. Here's some of the reasons I never made it... 1) Most start with a good internship before your Senior year. 2) You'll have no life for two years. 3) At end of two years you either "make it" or they recycle you with a fresh bunch of hungry graduates to abuse. 4) The high percentage that don't make it will go back for an MBA or switch firms. 5) You make much money, but did I mention you have no life. 6) For a top firm back in 1996 they were looking for a 3.8 GPA+, you had to have inside contacts, you needed a good internship, you had to be social and a good partier, and you had to demonstrate success even though you were bogged down with activities. I had all of those except the GPA. Grade inflation never caught on at Babson, 425 in my class and #1 had a 3.76 GPA. You could of been top 25% in our class with a 3.2 and the majority of our class for high school NHS, 1250+ SAT, and 3.5+ HS GPA. I always thought that was a disservice to Babson's seniors with all the other schools grade inflation to compete against. 7) Not complaining now. I went into Information Systems which was really hot through about 2000 and I work 40 hour weeks. All that other time I would of spent working I now spend with Jennie, Ferrari community, and my other hobbies. I'm not rich, but I like my life. Now if anyone wants to hire a Babson Finance/Investments major with 7 years of systems development experience... I'm all ears.  | ||
| TomD (Tifosi)
Intermediate Member Username: Tifosi Post Number: 1985 Registered: 9-2001 |
Agree with Ernesto - especially these days. If he got 225 right out of school without experience I would be surprised even if it was a top school. The market for IB is very slow now be will eventually pick up again. FYI , Wall street firms pay approx 50% of revenue out in salaries and bonuses so you land an IPO or M&A deal which brings in 50 million in fees, you and your team get paid pretty well | ||
| Ernesto (T88power)
Member Username: T88power Post Number: 938 Registered: 2-2001 |
Jim, $225K right out of college sounds a bit far-fetched, even in the investment banking industry. Maybe out of a top business school it may be a bit more believable... Investment Bankers act as agents that serve as intermediaries between a company issuing stocks (or other securities) and the investors. They not only handle IPOs but also secondary issues and private placements. They can also be involed in M&A deals, and they earn a percentage of the total deal. Major bucks for the firm. The actual salary is peanuts when compared to the bonuses these people receive, which can be many times the salary (at least as of a few years ago). Theoretically, there is supposed to be a "chinese wall" between the analysts and bankers, but we all know the practice has been a bit different. Ernesto | ||
| Jim Schad (Jim_schad)
Member Username: Jim_schad Post Number: 536 Registered: 7-2002 |
I know this may sound dumb, but I need a simple explanantion. Another thread made me think of this question. I had a friend right out of college go to work for a firm in NYC and rumor was he started at $225K. Is that possible? How do investment bankers make so much money? Do they get cuts for bringing biz to a bank or what? I imagine these guys are in the middle of all the wall street fiascos going on now. Also, I understand the conflict of interest by mizing stock rec's along with the investment banking biz you get by giving a favorable rec. But what is so lucrative about it? THe fees? The interest the bank gets? The free IPO shares? THis all seems so transparent to me that I can't believe the SEC, the public, the GOVT didn't see it coming for years. Or maybe they did and didn't care. Last question. Is investment banking still a hotshot biz to be in? Should I go back to school? |