​Have a technical interview lined up in Asset Management? Then make sure you can answer each of the below questions competently. Your job depends on it!

1.    What is value investing and how is it different to growth investing?

2.    What's the formula for free cash flow?

3.    What is the difference between net income and free cash flow?

4.    Describe 3 important ratios used in value investing including their formula.

5.    What traits might an undervalued stock exhibit?

6.    What sort of information would you expect to see on a balance sheet?

7.    Explain one important way in which a balance sheet is different from both an income statement and a cash flow statement.

8.     What is WACC?

9.     What is the capital asset pricing model?

10.   What is leverage?

11.   Do you know any leverage ratios? Which ones?

12.   Please describe one or more studies that validate the virtues of value investing?

13.   Tell me about a stock that might be undervalued in the S&P500 and why.

14.   Tell me about one key proponent of value investing.

Book a mock interview to ace that interview!

Best of luck!! 

Have a technical interview lined up in corporate finance (a.k.a. IBD)? Then make sure you can answer each of the below questions competently. Your job depends on it!

1.  What is the difference between a buy-side advisor and a sell-side advisor? Which would you prefer? 
    
2.  Do you know any valuation metrics? Describe them. 
      
3.  What do you think about the current state of the US economy?

4.  Explain one important way in which a balance sheet is different from both an income statement and a cash flow statement.

5.  What is leverage? 

6.  Do you know any leverage ratios? Which ones?

7.  What is WACC? 

8. What is the capital asset pricing model? 

9.  Describe five synergies that would result from a merger between Vodafone and Sky TV. 

10.  Tell me about 3 businesses that are probably flourishing in the current economic environment and explain why you think they would be flourishing. 

11.  Tell me about a stock you like and why.

12.  What type of information goes into a pitch book? 

Book a mock interview to ace that interview!

Best of luck!!

​by Girl Banker

Knowing details about the investment bank and then appropriately dropping that knowledge into an interview shows that you are very interested in the role, that you have done your homework and it will boost your chances of getting hired.

Before you head out, make sure you know the following:

1) Size of the bank by market cap. If you’re looking at a boutique investment bank this is not so relevant. Other metrics, such as the bank’s sector focus or client-focus, may be more meaningful to you. 

2)  Number of countries the bank is located in. 

3)  Number of employees. 

4)  The location of the head office of the bank.         

5)  The CEO of the bank and other important or well known employees.         

6)  The bank’s mission statement and guiding principles.         

7)  Read the careers section very thoroughly for any hints and tips; you may be surprised by how much info they give away.         

8)  In the careers section, do they have people profiles? What do employees say about the bank and why they like working there. If the pros they mention appeal to you, try to mention them in your interview.

9)  Interesting bank policies e.g. their environmental policy?
  
10)  The bank’s pet projects, e.g. are they supporting a big environmental restoration project or something to support a specific group of dispossessed people? 
        
11)  Recent news involving the bank: deals they are working on, regulatory rulings affecting them, earnings announcements.

I really charmed the pants off my interviewers at my first Goldman interviews because I had memorized their 14 business principles and I knew everything that Goldman was doing for the environment and so forth. I came up with this strategy because, as I perused the firm’s website, I noticed how frequently they referred to their business principles.

Some of my responses went like the following: “According to business principle number 7 which states that ... and I follow exactly the same mantra as exemplified by the time that I did...” – yep, it’s official, I’m a suck up and proud of it. A little flattery won’t hurt you but don’t overdo it. ​

by Girl Banker
​
Listen to the iTunes podcast instead.
 
These are the eight things that will get you a job in investment banking. I believe having seven out of these eight helped me get into Goldman Sachs as a newbie analyst.

1.      Gain knowledge

Read the news! At first you might feel like it’s a waste of time especially if you’re not interviewing yet but as time passes you’ll realize that some knowledge just sticks.

Without a shadow of doubt, if you spend 20-30 minutes per day on financial press, your overall knowledge and feel for the industry will start to become well-rounded.

2.      Come top of the Class or Course

If you came top in any class or course - highlight it, it means you’re smart; smart = hard working (normally).

In my second year in university, I came 5th in the Econometrics paper – you best believe that I brought that up interviews. Econometrics is hard and to come 5th out of about 150 people in a University of Cambridge class is the sort stuff interviewers are going to remember afterwards.

3.      Be an Achiever - prizes, awards and scholarships

Even if you’re not top of a class, any major prizes, awards and scholarships must be revealed when the opportunity arises.

This sort of stuff shows that you are an achiever, bankers love to work with and be associated with high performers.

4.      Be a Team Captain

If you are captain of any sporting teams - don't forget to bring it up; out of any other credentials you might have, this shows you are popular and hence personable the most. Especially at the secondary school level, to be awarded the role of captain you need to be liked by the teacher and the people you will be in charge of.