Revealing My TOUGHEST Investment Banking Experiences!

In this video, I go over my toughest experiences in investment banking.

What’s up everyone welcome to my first video on rare liquid careers besides my intro video and today i’m going to be talking about my toughest days in investment banking as a bit of background about me i used to work as an investment banking analyst at jpmorgan from 2015 to 2018 and there i worked on 15 transactions that closed valued at over 14 billion a lot of

People know that investment banking involves some pretty grueling hours that can average anywhere from 70 to 100 hours a week but there isn’t that much content out there talking about the actual details of some of the toughest moments as a banker or as an analyst and so that’s what i want to talk about today so today i’m going to share with you five stories that

Involve the toughest moments i had while working as a banker and hope you guys find it interesting before i begin though i do want to add a caveat that i actually believe that banking is still a pretty great industry for a lot of people to join while it’s not for everyone and it is pretty tough in terms of the work-life balance i do think it’s a great stepping

Stone and if i could go back in terms of my career i would still want to go into banking want to go into banking again because of everything that i learned and i was also in a group at jpmorgan that had a really strong and supportive culture and so everyone has those bad days at work and maybe they’re a little bit more pronounced in banking but i just wanted to

Add that caveat that you know i still support the investment banking industry despite these stories that i’m about to share with you today alright with that said let me share with you story number one which is my first 100 hour week my first 100 hour week was actually around the third week of my job and it wasn’t because people were just piling work on me or i was

Just working on a super crazy life deal or anything like that it’s actually just because i was pretty inefficient i would say in investment banking it takes about six months for you to get pretty efficient and really know and understand how to do things quickly even really small things like excel shortcuts or powerpoint shortcuts once you amass all those skills i

Guess over the course of six months you can basically do what you did in that first month that might have taken you something like i don’t know a few hours to do in literally like 10 minutes but going back to my story basically during my third week i was tasked with working on a marketing book and so monday through thursday or so i was working from around 9 00

A.m to 2 a.m and it will again it wasn’t because i just had so much work to do it’s just because i was pretty slow and i just wanted to do a good job as well and then over the weekend i had to work on transaction comps and the issue with this was that first of all for transaction comps it’s the type of valuation analysis that’s actually relatively simple although

Finding data is really the toughest part because after that everything is just pure calculation very briefly transaction comps involve looking at what price a company purchased another company in the past and then using those kind of financial metrics and ratios and growth rates to compare against the company you’re trying to buy now and then creating a valuation

Analysis based on those figures now i was working on this over the weekend and the issue was that when a company acquires a public company because that public company is public there’s a lot of public information out there and so it’s easy to find those figures but when a company acquires a private company that private company can disclose however much or as little

Information as they really want they don’t even have to announce how much they sold the company for and so i didn’t know that at the time and i was looking for private company data all over our databases our resources that we had on google and i just could not find any figures now this is where i take some responsibility i should have probably asked another analyst

Or associate what to do but then it was the weekend i didn’t really want to bother people and it was just my first few weeks in banking and so i tried to figure out as much as i could online and just like digging through a ton of data but basically i just could not find any information and i just spent a ton of time on the weekend trying to find information that

Didn’t exist and what really saved me was that i was in the office in my cubicle and then an m associate just happened to walk by and i had done something for him a little bit earlier so i felt comfortable asking him some questions and he actually basically just told me hey like you’re looking for information that doesn’t exist so yeah that was my first 100 hour

Week didn’t involve anything too crazy i was just working pretty normal-ish banking hours from 9am to 2am during the weekdays and then during the weekend besides the transaction comps i also had some other work to do but i spent a lot of hours on the weekend just kind of spinning my wheels not really getting much done the second story i’m going to share with you

Today is titled the bad associate when you’re working in investment banking but also probably any other job there’s always some people that you just really don’t want to work with whether they’re just one level above you or many many levels above you and in investment banking there’s always associates vps and directors that you just really do not want to work

With fortunately i would say that actually in my group around 80 to 90 of the people were actually good to work with but there was actually one associate outside of my group who was just really really notorious for asking for things for other analysts to do so that he would just do less work and i was staffed with this associate and it was just a nightmare of

A project now i don’t really remember what the project we were working on was because it just amounted to nothing anyway but i remember this guy just kept piling work onto me and it really is just the worst feeling when another group’s associate gives you work as an analyst because you already have your own stuff to do and then this other guy is giving you some

Other things that his group should be working on for you to do instead as a bit of backstory as well i had worked on something for him over the weekend while at a friend’s wedding and so i had already kind of built up some resentment towards this guy because he gave me work when i really just wanted to hang out with my friends and enjoy my time and then during

The week i remember it was like a wednesday or thursday or so and we were on the phone he was asking me to do some things and then i just snapped i basically just told him on the phone like you know what you’re asking me is ridiculous and i’m not gonna do what you ask me and you already made me work over the weekend on this thing that didn’t amount to anything and

So i’m just not gonna do it and then i just hung up on him and i really never show any signs of frustration or never had to my co-workers in my group and this was during my second year when i had been there for a while and so i think everyone was a little bit shocked it’s not like i was yelling or anything but the cubicles in banking are right next to each other

And so you really can hear what everyone is saying all the time immediately after the call i just walked out of the office and then i just walked around for a bit i think when i came back my co-workers were a little bit worried about me um because they they were really on my side as well because they knew this associate had kind of like a bad reputation um but

Honestly what i just did was i bought some haagen-dazs ice cream i just ate it and walked around and uh kind of just like cooled off the third story i have for you is called being stuck in snow this is kind of actually more of a funny story but for around like five to ten minutes or so it was really one of the toughest moments in banking just because i was really

Embarrassed after you close a deal in banking there’s usually some sort of celebration and 20 to 30 years ago they used to be super super extravagant and i don’t even know what they did back then but nowadays usually it’s just a fancy dinner where each person it might cost like two to four five hundred dollars per person and you just eat a really fancy meal at a

Nice restaurant but after one deal that i worked on that was over a billion dollars and was with one of our largest clients at jpmorgan my managing director was able to get approved a three-day skiing trip at deer valley which is a ski only resort and i hadn’t skied in like 10 plus years and i remember i didn’t even thought i didn’t even think that i needed goggles

And i remember skiing during our first run and snow was just getting into my eyes i literally had to go away from the group and buy goggles separately myself but the actual embarrassing part was everyone around me was actually really good at skiing even my associate was like a ski instructor before for a few years and i don’t know everyone was just really good at

Skiing and we were going down moguls which are these like bumpy uh areas where i guess it’s more fun for advanced skiers but i basically got stuck in the middle of the mountain and my skis fell off and i remember everyone else was near the bottom of the mountain and they were just like looking at me and it was like my managing director and like the client who was

Like this high-level vp guy and i remember just sitting there stuck being like oh my god i am making such a fool of myself and i you know i wasn’t like thinking that i was gonna have any like huge major consequences or anything like that but i just remember just distinctly i can still picture my managing director and the client like they’re with their goggles like

Looking at me even though they’re like tiny little ants and they’re just waiting for me for like 10 minutes and some guy from ski patrol had to come and like get my skis and then put them on me and then like i slowly went back down and kind of met up with them so that was a pretty rough five to ten minutes but it actually all turned out well because uh when we were

All just getting lunch and dinner um we would kind of laugh about it and then the client actually respected that even though it was my first time skiing in like 10 years i still tried to go down to moguls and so it all kind of worked out in the end but for those 5 to 10 minutes it was pretty embarrassing the fourth story i have for you was a challenging just kind

Of period about a month or so when i was working on eight projects at once my group at jp morgan was really small and kind of close knit and there was never more than something like 15 bankers at a time all the way from analyst to md and during that time an associate had recently just quit and an analyst had as well so there were only like three maybe four analysts

At the time working on a ton of deals and so it was kind of great i guess we had a lot of responsibility but it was just at one point i had eight projects going on at the same time now this doesn’t mean that all of them were just firing at all cylinders at once and not all of them were live deals of course i think it was only one or two that was more of an intense

Live deal but i distinctly remember we had like four associates and usually what i did is i had a to-do list of what i needed to do for each project and what i had to do with each associate and so i went to each associate and then asked them like hey what do we need to do for this project let me know and or i would have them check something and then i went into the

Next associate and then the next one and then the next one like four in a row and then i think at one point one of the analysts just like was like talking to me saying like dude you must be like really busy right now you’re literally talking to every single associate now things did eventually kind of die down for some of the projects and eventually i was managing

Something more regular like two to four projects at a time but i remember during those that few months stretch during lunchtime my analyst buddies would usually pick up lunch for me i’ll just eat at my desk really quickly and i also remember you know at jp morgan we had something called protected weekends where one weekend a month you get that weekend off which i

Know probably sounds a little bit sad but it was a huge weekend where you just know that you have no work and it’s just great to have that weekend off but i remember for three months straight i just did not have a protected weekend because each weekend just kind of blew up and i do have to give my group and just the firm credit thereafter i pretty much always had

My protected weekends protected as much as possible but it was just during that rough stretch where i didn’t i wasn’t necessarily working you know like 10 to 20 hours on every single weekend but i just always had work to do during those weekends that i should have been having off all right now last the fifth and final story i have for you is my 28 hour work day

Now the context around this story is that i was working on a dcf valuation analysis for a biotech company and it was just the most intense model i had ever built because we had five drugs for that company and we had to market size the entire us population and then get to the total addressable patient population and then go to the number of people or patients that

Would actually use this particular drug and then that gave us the total volume which would multiply by our price and we had to project out our price as well and then we had to project all of this out for each of the five drugs for 10 no sorry 20 to 30 years and for each of those drugs we also had a patent cliff which meant that when the patent expires the revenues

Would just decline really sharply and so i ended up building a financial model with like 20 to 30 different switches and maybe like 100 assumptions and it was just the most intense financial model that i had ever built i was doing all of this work for a board meeting presentation that was next week and the thing with banking is that you always have these meetings

That are coming up and all of a sudden you have to do a ton of work and so i had to build out this financial model asap and so i ended up just working 28 straight hours and i’ll just never forget the number because i remember going into the office at 9am and then leaving the following day at 1 pm now it’s not really that my team or managing director anyone was

Being ruthless and saying hey you have to get this done by a certain time but i wanted to get a certain amount done and send the financial model to my associate and i wanted a certain amount of it completed but it was just a really tough and challenging task and so i ended up just working that much and when i sent it to my associate she immediately sent me home at

1 pm which knew no one leaves banking at 1 pm and so i just slept the rest of the day so even though i worked really hard i also got a lot of rest i also don’t really think that this was a really hard moment for me although it was physically kind of challenging because i was actually really really interested in what i was doing i think building financial models was

The most interesting part of my job at jpmorgan and so when i look back at that particular story i don’t really think of it as something that was really really hard i actually have even worked 24 hours straight for rare liquid my crypto channel which you can check out and you know i think when sometimes you know if you are in the zone and you’re working really

Really hard on something and it’s really interesting then you’re just willing to put in a ton of hours or maybe i’m just kind of weird i don’t know all right so that wraps up my five stories about my toughest moments in banking and if these stories didn’t scare you off i am actually selling my resume and cover letter that got me into jpmorgan and a guide that i

Created about creating a perfect resume and cover letter for banking and so if you’re interested in that you can feel free to check out my description down below if you have made it this far and enjoyed the video would really appreciate if you could support the channel by dropping a like and subscribing and with that said thank you so much as always for watching

Hope to catch you in the next video thanks and peace out foreign

Transcribed from video
Revealing My TOUGHEST Investment Banking Experiences! By rareliquid careers