Practice For Interviews With Flashcards

                                    

At one point, when I was going through recruitment, I practiced with flashcards. Three quarters of the cards were passed on to me from a previous candidate. Now I hope the deck will help you.

Since you can’t always practice with peer, career service representative, or banker, flashcards are the best way to practice independently. As you get a handle of each of the questions, work on making your answers more focused, making your answers interesting, and practicing improving your etiquette. I would recommend:

  1. Practicing out loud
  2. Recording your voice (a test for a phone interview) or tape yourself using the webcam (a test for in-person interview)
  3. Showing off your interview etiquette while practicing

By the time you evolve to mock interviews with other people and informational interviews, you should be very well prepared for investment banking interviews.

As you can see in the Finance Q&A Guide, there are two types of interview questions: behavioral and technical. Each of the posts have questions and answers set up. If you would like to practice your behavioral interviews, check out:

For technical interviews, the decks are embedded in the posts. As time passes, I will be adding more questions and decks with your help.

Again there is a thing as too much practicing. Remember the Pareto 80/20 rule when it comes to interview preparation verses networking. Practice a dozen to half a dozen times and then move forward.

Finally, if you want to see all of the cards in one location or on you iPhone, you can. All of the cards are located in Quizlet, where my username is Cap_Concept. Shoot me a quick message if you would like to share your own deck or add Q&As. Quizlet makes the process convenient.

Investment Banking Recruitment Process

                                  Mad Men Management Team

All the preparation and networking comes down to this- investment banking recruitment. There are generally four stages to the investment banking recruitment process. Below is the typical breakdown along with tips for getting through and winning offers.

1) 500 to 1000 resume applicants

  • Generally an analyst will be assigned to page through hundreds of resumes at 2am. Having someone preference your resume is crucial to being selected since everyone’s resume looks pretty similar at this point.
  • Your school and GPA is relevant at this stage and never again if you pass.

2) 30 to 50 first-round slots

  • Students tend to under prepare for the portion.
  • Conducted on the phone or on campus.
  • Prove that you can work very hard on little sleep, learn quickly, play well in teams, and are hungry for experience. Don’t be the candidate just “testing the water” because this is the stage where you will be cut. 

3) 10 of those students advance to the Superday

  • Students over prepare for this portion. Don’t stay up all night practicing LBO skills; instead focus on delivering your answers well.
  • That said, if you have previous investment banking experience, expect to get significantly more obscure technical questions. Others with non-finance work experience will still get technical questions as well, but the focus mixed in with questions about your background.
  • You’ll have at least four interviews (sometimes 10!)- each with a different seniority banker and focus of questions lasting 30-60 minutes. Leadership, drive, fit, and technical skills are usually themes of questions.
  • Be interesting. Even during the varying intensities and types of questions. This is the most important factor to landing an offer.
  • Bankers will definitely test your endurance and ability to tolerate stress during this process.
  • Conducted at the bank, students airfare, hotel, food, and transportation will usually be covered by the company. 

4) 2 or 3 candidates will receive an offer

  • Candidates are often contacted the same day with good or bad news. 
  • Those offered positions will receive a formal offer package from HR with an expiration date.

Another Few Points to Note:

  • If you apply, you have roughly a 0.02% chance of getting an offer. The percent is far from great, but it is because there are fairly few outstanding candidates. Practicing your interviews and networking will greatly increase your chances of winning an offer.
  • Depending on the size of your bank, analyst classes can reach a couple hundred.
  • Junior bankers pick resumes. MDs handout offers. While HR focuses on the logistics.
  • There are rarely so many great candidates that MDs have to debate. There is an opportunity to be waitlisted. 
  • The clear winners are usually visible; however, it they’re not, MDs hold more clout than analysts. 
  • As with every system, there are costs and benefits. The investment banking process is efficient and favors the interviews who prepare, practice, and perfect their answers. On the other hand, not every banker will interview you and different people have different standards. Increase your odds by applying to as many banks as possible.
  • Some spots are left open for students from “non-core” universities or late applicants from “core” schools. 
  • Along the way you may have networking events with the bankers. Whether this is a dinner event or drinks, make sure you attend and focus on networking.

 

Any Questions? - End of Interview Ideas

Mystery“Judge Randolph: You don’t have to answer that question!
Col. Jessep: I’ll answer the question!
Col. Jessep: You want answers?
Kaffee: I think I’m entitled to…
Col. Jessep: You want answers?
Kaffee: I want the truth!
Col. Jessep: You can’t handle the truth!”
- A Few Good Men (1992)

Apart from being one of my favorite movies of all time, this quote from A Few Good Men demonstrates the power questions. Since interviewing is a two-way street, always be prepared to ask questions. Sure, this process provides you with the opportunity to learn about the interview and the company, but main goal is demonstrating your conversation abilities while building a raptor.

While, there is no set number or formula for the questions you ask, some questions are worded better than others.
Example 1:
Not good: Does your organization value its employees? (Aside from being answerable with a “yes” or “no,” it almost sounds antagonistic, because a “no” answer is clearly a negative.)
Good: How will your organization show it values its employees?
Better: What are things your organization has done recently to show how it values its employees?
Example 2:
Fair: Are you planning to open an office in Spokane?
Good: What are the plans for opening an office in Spokane?
Better: I read a news story about the possible opening of an office in Spokane. Knowing that a news article does not always capture the full story, I wondered what factors are under consideration for this decision. (Notice this isn’t technically a question, but a series of statements showing your interest and inviting conversation.)

Now that structure for questions has been introduced, change up your question choice according to the occasion.

1) Informational Interview Questions
Informational interviews are opportunities to learn about the firm and their talent. This category includes family/friend meetings, career events and fairs. Regardless of whether you know the person well or not, ask questions that reflect your passion for finance.

2) Information Session Questions
Students frequently attempt to impress professionals, professors, and peers with difficult questions which no one cares about the responses. This is a waste of time. Bankers come to these events for a break from their terrible hours and get drunk. If you want to ask a question, capitalize on the fact that the bankers are in front of a group and ask them personal questions. That way you may be remembered and can talk to them after the session is over.

3) End of Interview Questions
Don’t ever try to learn things you do not know in this portion of the interview. Control the conversation by asking these kinds of questions:

If you are having trouble developing questions, consider the following samples as food for thought to help you consider your own questions. In the end, ask a question about a subject you are knowledgeable on. Moreover, make sure the answer isn’t available on the company’s website.

  • What are the characteristics of an ideal investment banking analyst?
  • What traits make a person successful in this business for the long term?
  • What percentage of the managing directors are female or minority?
  • How did you (the interviewer) break into investment banking?
  • How much of an analyst time is spent acquiring new business verses working on deals?
  • Is there a formal mentoring program for new analysts/associates?
  • How is an analyst assigned from the generalist pool to a project?
  • How long does it take most people here to become managing directors?
  • How likely is it that analysts get exposure to different types of deals?
  • What’s the path? Are there specific benchmarks you have to hit?
  • What are the firm’s biggest challenges and opportunities in the next 2 years?
  • What aspect of your job do you find most frustrating?
  • How has increased consolidation in the industry affected your firm, both positively and negatively?
  • Discuss a deal: What new business has resulted from the merger? How well have the two cultures mixed?
  • How would your firm fare relative to the competition if interest rates suddenly skyrocketed? If oil prices plummeted? (Or whatever else you can think of along these lines, to help you gauge how prepared the firm is for future possibilities.)
  • How has your firm been increasing cross-selling in emerging markets?

At the end of every interview a roommate of mine would ask if the interviewer felt he should should have elaborated on anything by asking a variation of, “How do you think I did?” He ended up with zero iBanking offers. If the candidate prepares beforehand, they will have enough practice to know if they performed well without having to ask.

Lastly, if you are interviewing in person, make sure you memorize the question, not read it. Also, if need be, this is the time to utilize your pen and paper for notes.

The Cycle of Winning an Investment Banking Offer

After going through internship and full-time recruitment successfully, I created the cycle below. Combined, there are 45 posts, 10 templates, 300+ flashcards and over 20,000 words that form the recruitment cycle. The learnable process is broken down below to provide the necessary information, techniques, and tools to help make your dreams a reality.

                                  Sally Drapet Driving

Why are you sharing this information?
Mission: To help any undergraduate, regardless of background or connections, land an investment banking job.

How is Capitalist Concept’s advice different?
It is no secret, there are several other blogs talking about investment banking. I used them to help me succeed and highly recommend you refer to them for more information. However, this program has three main differentiators:

  1. Simple – The cycle is conveniently organized and explained. Not every subject will be covered (e.g., exits, geography, etc.). The posts provide articulate and necessary information which can be read, understood, and used to the students advantage in a matter of hours. Additionally, the material remains comprehensive enough to serve as a reference for your future questions and concerns. This means the language is purposeful so you may have to read it again to grasp the details.
  2. Personal – Each post contains detailed examples and scenarios whenever possible to better explain the topic. I have experienced recruitment firsthand and am happy to share helpful stories. Moreover, supplementary links to credible sources are included for further information if you need it.
  3. Free - Every single IB blog I’ve seen attempts to sell their readers something (e.g., resume editing, interview guides, or modeling courses). Consequently, many of them have to write filler posts to attract visitors and withhold information for customers. I have a job that pays me well. Frankly, charging a price would contradict the mission so I provide all of the resources free of charge.

What is the investment banking cycle?

                                       I Need a Job Please
There are four basic stages that you repeat to form the cycle. Each stage has a series of posts focusing on what it is really like to break into and work in the industry. The information is meant to give you the tools necessary to accomplish the actions.

1) Finding your Interest: Figure out if and why you are actually interested in working in banking. Since breaking into banking isn’t for the faint of heart, make sure you understand a little about the industry before allocating your time and effort.

  • If you’re finishing up your senior year of high school or starting your freshman year, chances are you still don’t know where to start. Check out the previous hyperlinks to check out general advice.
  • Want to work in investment banking? Get an introduction into the day-to-day life of a banker, the skills needed, and what bankers look for in candidates.
  • People often get confused between hedge funds, private equity firms, commercial banks, and investment banks. Learn more about the organization of the finance industry and check out 9 examples of investment banking work.
  • There have been several books, movies, and TV shows. I know you have plenty of free time in college. Take some time to enjoy some banking related entertainment. Honestly, the book list is a great place to start; and is a very efficient source for in depth information.

Action: Start reading the newspaper consistently. This will help you pick up the terminology, and judge if you are actually interested in the subject. Additionally, it’s time to build your resume and cover letter. Clubs other organizations will be asking for these, and they are the foundation to your investment banking application.
 
2) Preparing for Interviews: Compared to your peers, banking interviews will be difficult and competitive. Of course, this means that you’ll learn how to communicate effectively and have the opportunity to learn more about your prospective field.

  • Take a look at the Capitalist Concept Interview Guide with comprehensive answers to common behavioral and technical questions.
  • As you formulate your own answers, practice proper interview etiquette. This will give you a solid foundation for real interviews and networking.

Action: After you read through the interview guide and know how to answer the common questions, practice your interviews through several mock interviews. Take a look at these flashcards to help with your preparation.

3) Expanding your Network: Networking is the most important stage in this cycle. Apply the Pareto principle: focus 20% on interview preparation and 80% networking. Often people consider being a perfectionist as a weakness disguised as a strength. This is not only a poor answer in an interview, but an actual weakness. If you wait until all of your interview answers are perfect, you will never break into banking. Start networking today.

Action: The goal is adding as many bankers your network as possible by learning about the trade and build some relationships. Frankly, this entire stage is about action. Start by creating a list of contacts. Then formulate your personal short-term (3 to 6 month) networking strategy with specific goals, tasks, and deadlines. After that, all you have left to do is execute.

4) Accepting the Offer: Figuring out where you are going to start your career is dependent on your options.

Action: Accept your offer, and then thank all of your contacts. Obviously, the next step is celebrating. Congratulations! Then prepare to start your career.

Will this process will work for me?
Probably. I would suggest reading all of the material in each section first. Then you’ll have a strong foundation and understand how to frame your personal strategy for the actions.

There maybe several times throughout this cycle when you are feeling discouraged or find objections. Don’t give up. I have dedicated an entire post addressing this topic.

What do you expect to result from this cycle?
My hope is that after students read this information, they can focus more on the application of the principles. I believe the result will be improved quality and diversity in analyst classes.

If you like the information or simply know someone else who’ll benefit from this information, spread the love through re-blogs, shares, and comments. Best of luck!

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Please Note: I’m currently working on finishing all the articles. By focusing more on cranking it out and less on quality, I can get my thoughts and information out quicker. Eventually, when this note is deleted, I will have gone back and finished editing, improving, and adding to each of the posts on this list.

Right now, feel free to send me suggestions on how I can improve the list, posts, or if you have any commentary. Cheers!