Insights from a Former Investment Banker: What I Wish I Knew Earlier

The journey through investment banking is fraught with challenges that can profoundly impact your personal and professional life. As someone who has navigated the murky waters of the Wall Street machine, there are several insights that, if known earlier, could have spared me a great deal of stress and hardship. This article aims to offer a candid look into the realities of the job and provide valuable advice for aspiring finance professionals.

Realities of the Job

The first and most critical realization for new hires is that being an investment banker is more about sales than it is about finance. As a fresh graduate from a lower or middle-class background, the harsh truth is that you likely won’t have the family wealth or connections to build a sustainable client base that can support a living. This realization can be daunting but is crucial for setting realistic expectations.

Other significant challenges include the intense stress and its detrimental impact on one's health. Despite possessing strong mental and physical resilience, the pressure to perform can eventually wear you down, impacting not just your career but your overall well-being. Recognizing and addressing these issues early on can help mitigate long-term consequences.

Key Lessons and Advice

1. Building Social Capital Matters: Character matters just as much as skills. In my experience, personality and social abilities can play a larger role than technical expertise. For instance, my colleague Boris Johnson's half-brother was favored over a more enthusiastic but less chill intern due to his stability and disarming demeanor. This highlights the importance of being approachable and aligned with the company culture.

2. Submission is Key: The most valuable piece of advice is to do exactly what your bosses tell you. Resist the urge to think you know better. In my experience, trying to challenge authority led to unnecessary setbacks and frustration. Instead, focus on delivering exactly what is asked and being a loyal and reliable team member.

3. Work Hard, Sleep Enough: Many young bankers work long hours, but it is crucial to find a balance. Staying up all night to meet unrealistic deadlines is not sustainable. Prioritize your health, both mental and physical. Ensure you get enough rest, which can significantly impact your performance and overall job satisfaction.

4. Networking is Crucial: Engage with senior figures in the industry and build meaningful relationships. A strong network can open doors to opportunities and make you more memorable in the long run. For example, wearing professional attire or choosing a convenient location for your commute can leave a positive impression on potential connections.

Conclusion

The path to success in investment banking is fraught with challenges, but with the right mindset and strategies, these obstacles can be overcome. By understanding the realities of the job, building strong social capital, following orders, managing your work-life balance, and investing in networking, you can set yourself up for greater success and maintain your well-being throughout your career.

Good luck!