Is CONSULTING more sustainable than INVESTMENT BANKING?
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- čas přidán 3. 07. 2024
- In this video we discuss some subtle differences between consulting and investment banking, specifically at the junior level, that can greatly impact the sustainability of the job.
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Disclaimer: the views expressed in this video reflect my own and are based on my personal experience working in both investment banking and management consulting. They may not be representative of the experience at all investment banks and consulting firms.
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0:00 Intro
1:55 Key Difference #1 - the workflows
4:37 Key Difference #2 - the cultures
5:55 Key Difference #3 - time off and vacations
7:04 Key Difference #4 - staffing and project length
8:34 Closing
So well-reflected, a million thanks! ;)
glad you found it helpful! More to come
This was a really good video bro. Clarified a lot🙏🏾
Thanks!
what a great comparison! Thank you for your sharing
Glad it was helpful!
Good work bro! Thanks a lot!
Nice video; especially free weekends in consulting are almost sacred (some projects might require occassional weekend work tho)
Nice Video, thanks for the insights!
of course, glad it was helpful!
Nice video, love it!
Glad to hear that!
Great video
Glad you found it helpful!
Hi Matt! The content was insightful, nd i really learned a lot, Thanks😊👍 nd one small suggestion do voice modulation inbetween 😊
Thanks for the tip Harini!
Amazing vid! Can you talk about how you recruited post grad/with work experience? I want to transition from data analytics to consulting but have heard that the market is difficult right now and I can no longer do on campus recruiting.
Absolutely! Definitely a relevant topic in today’s job market
Pretty good. Thanks. toronto canada
A speaker (she consults for mining companies in AU) from my university career lectures showed us her 7 to 9 timetable, only having time off between projects. She also talked a lot about faking it until you make it because consultants usually don't have the expertise in the field. I was really interested in consulting at the time but that talk put me off completely. I have been working in risk and investment banking for several years. However, I am still currently under the impression that the work style of a consultant is unsustainable and most graduates and juniors will either burn out or stagnate 2 to 3 years into their consulting career.
Idk I chosed consulting because I love Industry 4.0 but then Finance pays more so it depends on your goal hahaha
Cool vidéo by the way !
Fair point!
Surly consulting will get you into buyside in no time lmao
Subscribed🎉❤.. Wish me best luck bro❤
Good luck - you got this!
Hey there! First of all thank you for your work, it's a lot of help! May I ask what do you all think about teaching and tutoring opportunities in finance or financial politics? I think that is the part i'm most interested in. I'm 27, just went back to the university for a finance bsc, and i have background in fine art, so tutoring was a big part of my life, but I've shown a surprising amount of interest (at least it suprised me) reading about economical history, financial politics and of course, as cliche as it might be, the stock (I hold a more or less actively traded stock portfolio since I was 19) and real estate markets. Any help or suggestion is tremendously welcome! Thank you guys in advance!
Thanks for your comment! Unfortunately I can't speak to teaching opportunities in finance, though I'm sure there are opportunities for somebody with your experience. If you are interested in working in asset management (given your interest in stocks), you may want to consider equity research - its a good entry point and they tend to hire from a more diverse set of backgrounds (in the US at least)
@@matthuang21 Oh my God, thank you very much for answering personally! I'll look more in-depth into equity research, thanks for putting it onto my radar. I'm sure my perspective will mature and evolve during the years of the university, nothing is set in stone at the moment for sure, but i like to have a plan ahead, something to grasp onto, even if it's just a roughly laid out one. Once again thank you very much! I'm looking forward to your videos and wish you all the best and the greatest career you can imagine for yourself!
How much financial modeling could you learn at an MBB (say if you do PE DD) and how big would the skill gap be compared to an IB person?
Very little financial modeling in consulting even if you’re doing DDs. The modeling you do in DDs is often market modeling (projecting the size and growth of a market). Investment bankers have a huge leg up if we are talking purely financial modeling (3 statement, DCf, LBO, etc). That said, lots of consultants reciting for PE roles end up just self studying the financial modeling.
They're both tough. The issue with investment banking is that they fire everyone at 40.
Is that because salary growth gets too high and it's too expensive to keep older people around?
why do they fire every one at 40 ? is it because people at 40 no longer have the energy to work long hours in investment banking ?
Supply and demand
Wow retire at 40, sounds good
How Much was you making in consulting vs IB ? Was it the same amount or less ?
Took a slight paycut to move to consulting, if you wanna maximize pay I recommend banking
If I may ask, why did you jump from investment banking to consulting? Was it because of the working culture that you mentioned in the vid? Or because of other reasons?
A combination of reasons which I will cover in a future video (stay tuned!), but partly due to working culture and also a desire to learn more about the operational side of businesses and how strategic decisions are made
does this apply to big 4 consulting jobs in any way?
Broadly speaking, yes - many of the things I discussed apply to Big 4 consulting jobs as well. For example, although you may work on more implementation projects vs strategy at Big 4, you will still have much more predictability over your schedule than a banker who doesn't know when their M&A deal is going to close. You also benefit from "beach time" in between cases, and you also likely will collaborate in shared ppt files with the team vs the standard practice in Banking of having to pdf your work, email it to the MD, and get comments back. Hope this helps!
I am curious about the “stress”. Which job is more stressful? I think consulting is more stressful given that a lot of time I was assigned to do a task that I don’t know how to approach. So I need to think about an approach + aligned + finalizing the work in a very short of time
Great point! I think it depends how you define "stress". If stress = mental/intellectual demands, then I think consulting can definitely be more stressful than banking at times, especially when you aren't given clear direction and need to "structure the approach" yourself. As a junior in banking, you are largely focused on execution and there is less ambiguous problem solving and framework development like in consulting. If stress = sheer hours in the office / unpredictability of the job, then banking is more stressful because you're working alot of weekends and you can't make plans in advance or know exactly when the deal will finish.
I wish you didn't actually include the name of the company, it would've been much funnier kinda a IYKYK joke 0:42
Also I'm glad my MDs were "nice" or I guess were competent enough to mark up my PDFs in the actual PDFs and not mark them physically which I have dealt with and it was a fucking nightmare.
Yep, only real ones know how bad it can be trying to decipher illegible handwritten comments when it’s midnight and every minute counts
Investment bankers actually help businesses, consultants are just parasites.
I get where you're coming from but Consulting definitely has its place. It's just that nowadays it is being used way too much for bypassing important decisions or responsibilities to outside parties
Hi sir, @Matt Huang