First Interview in ER (and finance..) - any/all advice welcomed (Toronto)

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#1

Hey guys, I realize I can use my “research skills” and find a lot of relevant info on this, but still fun to create a thread, get personal advice to your (my) situation, and then follow up with how it went.

Brief Background:

I graduated this summer with BComm degree, and have no prior work experience in Finance (just sales/customer service). My course-load was very light in last year, and so I took on CFA. Passed Lev 1 Dec '14, and Lev 2 Jun '15; I’m Lev 3 candidate for next Jun '16. Downside being that I haven’t worked at all since early 2014 (last 1.5 years just been about finishing degree/getting to Lev 3 candidacy) and have no experience with extra-curriculars at school (eg. investment groups)…the finance path came late in Undergrad.

Anyway, I have a good buddy who’s in this firm (in ER), and he was able to get my resume looked at, and also put in a good word about my work ethic and kind of guy I am, etc. I’m meeting with the department head next week (not the analyst), as it seems like some sort of initial screening. I have not been contacted by anyone from firm, just through buddy (was told I could meet tmrw or next week…opted for next week so I could prepare).

Apparently they’re looking for someone GREEN (cheap/slave-like?), which is probably why I’m even getting looked at instead of higher qualified people. My current plan is to review major news in sector (Tech), get familiar with it, and research a few of the companies he covers. I’d also like to go over as many questions as I think may get asked and practise some answers. I’ve been told by my buddy and a past associate, not to expect any quantitative type questions, so thinking maybe not too important to focus on that type of stuff in prep.

All advice is welcome! Ideally I’d like to impress the **** out of this guy as I know with my lack of job experience, and fierce environment, it may be a while until my next opportunity…

#2
#3

copied and pasted from an email sent to another dude going for an ER interview. All the best kiddo.

–

I like how you think. While I’d think it’s not the case, I’ve had some dick questions asked in research interviews. What’s company 1’s BS cash value as of the last Q close? How many other analysts cover company 2? Who’s one of the institutional holders of company 3? And so forth. I actually hit 2 of the 3 questions as I tend to over prepare, but man, friends of mine were like, WTF, really?

Here is the skinny. Find out what the reseach is used for? Is it a fishing line for IB business like most is? Is it for wealth management clients? Does it get sold to buyside firms? Etc. A boutique firm may be covering more small cap stuff and not jamming up the big cap space with the other dozens of SS analysts on Apple. In my opinion, this type of research actually creates value versus the two talking heads on CNBC discussing whether Apple is ripe for a 3 or 7% revenue growth.

Another item, I trust this is true at most ER groups, but unlearn all that EMH BS taught in the CFA. That’ll get you axed real quick. Long ago I interviewed at a middle market IB in the research group and digressed that I was a proponent of EMH based on x, y, and z. I had good rapport with the analyst from before so he said, “Hang tight, I’m going to get an MD to speak with you quickly, but do yourself a favor and say the opposit of everything you just said, wink.” It was funny. But, no dice there anyway. In the mid/small cap space (not RIG), SS ER can have value great value as coverage is sparse and often unpublished.

Lastly, you’ll love this, but pretend to be Baldwin for a second (or Don Ready), and ABC. What’s that first S mean in SS? Yes, sell! You’ll need to sell yourself, your industry competency, and your confidence in your price targets. Oftentimes your job is to make sense when things do not make sense. For example, say your company has no recent news, no blogs, and no press releases, yet the stock price has gone up/down substantially? What happened? Well, no one knows, but you need to pretend you know. Paired trading, buying/selling on rumors, a big block trade going through, etc. It’s hard to identify the culprit as to why a stock will go up or down any given trading day, but your new livilihood will be to explain just that. This is why I often bash the talking heads on TV often saying nothing of substance to justify a market move or repeating old news claiming it’s now finally baked into the stock price.

Anyways, I got on a roll and went with my thoughts (pardon the typos). I know you can nail a job like this down. Despite what some folks say, they are not as high and mighty as they really are. You’re sitting at a desk, assembling a report, and generating a valuation. That’s the real work you do, it’s not brain surgery or life and death. Just know what you know, know what you don’t, and be true in what you bring to the table.

Finally, you said they got back to you quickly. That could be really good or a red flag. Perhaps you’re the golden boy they need in the chair based on your intellectual knowledge already existing, but perhaps the job sucked and the last guy left an upper decker as he burned out of the parking lot. Just trust your gut and ensure the move is mutually benefiical.

Ok peace!

#4

I think you mean, ask/answer these questions in my preparation, and not at the interview? But I’m not 100% sure…

ie. attempt to create good answers for those in order to sell myself at interview?

#5

CFAvsMBA - thanks for all that advice, some solid stuff in there. btw, i would be dead if i were asked some of those detailed questions about cash-flow per quarter etc!! they said they were looking for someone green, that would be cruel to start expecting associates to know actual figures from financial statements of certain companies! at least i think…

love the ABC/ baldwin reference. to this day, that baldwin monologue is my favourite movie scene ever… **put that coffee down, coffee is for closers only!**

#6

i cant feel my face when im with SHoot85

#7

Thank you Abel.

#8
#9

^^ much thanks Palantir, I indeed used the last question, and I think it made a good impression.

Just as an update…

Had a 2nd interview yesterday, with the analyst this time (first one was with Head of ER), and we spoke for almost an hour. I think it went pretty well, but I also think that’s often the 1st person perspective of these things (interviews, first dates, etc…) but it’s prudent to realize there ARE other qualified candidates thinking the same thing.

Anyway, it’s been narrowed down to 4 of us. We had to complete a 1 page research report/recommendation on a stock over past weekend, and I think I impressed with it (was told so by a buddy working there…). I should know within the next week (said likely early/mid next week an offer would be made).

I’m now walking the fine line of being completely giddy at the opportunity and yet trying my best to kill any expectations to prevent heartbreak hotel next week. When he spoke about the first year salary - and he had a whole 5 minute story buildup about how pay isn’t the same as it used to be and never will be again - as a new graduate, and looking for first role in finance, I had to do my best not to let my mouth drop open and contain my giddyness “yes I think that would definitely be fine…”.

This would be like a dream starting job…fingers crossed.

#10

^ What is the salary?

#11

How mych kid?

#12

I wouldnt discount your perspective on events. They may be slightly biased but usually you know how things go, at least they didn’t think you were a bell end and your work was shit. You moved on so clearly you were a solid candidate, even if they go with someone else you cant consider it a total failure.

#13

no, 100%. far from a complete failure. what I meant was a often times in life you come out of an interview or first date and you think it went awesome, only to find out it wasnt as awesome for the other person obviously. it’s just life. I emailed him today a brief thank you bc I learned a lot either way and really appreciated his insight and sharing his experiences, etc. the salary he said would be between 60 and 80 not including quarterly bonuses. I realize that’s peanuts to many of you but for a guy fresh out of school with no prior finance experience it’s a giddy-inducing offer.

#14

well done shoot.

#15

I made $14/hr fresh out of school at some hacksaw commerical bank. You’re killing it son! Make the AF Brethren proud!

#16

Pretty decent with no experience - make the best out of it!

#17

You did it shoot85. Congrats kid

#18

just to be clear, i did NOT get offer yet, lol. was just answering the question asked about potential salary if I do.

i’m praying… thanks for the support gents. but the crazy part is i could easily go months without an interview if i don’t get this. none of my other job apps have gotten nibbles… stakes are high!

#19

good luck, and may the force be with you.

#20

a bit of an update, and also would welcome some advice/input:

The first person I interviewed with (ie. not analyst) emailed me this morning, saying that I was a strong candidate, and the analyst was still deciding (he told me during interview last Tuesday that he should have decision by early/mid this week and would let me know either way) – BUT – in the “interim” they’d like me to come in and meet with another analyst (diff sector) this week, and also prepare another report on a company in that sector (2-3 pages), as they are looking for a “contract” position with possibility of full-time…

my thoughts and observations on this update…

  • why would they want me to do this if i were still a strong candidate in running for the role i interviewed for??? imo, they aren’t being quite honest here - i likely did not get role, but they like me enough to want to try me out for contract position with other analyst??

  • no more details on contract - but, i know there was a guy who worked in summer on contract for no pay, i’m wondering if this is what they are planning here (ie. free 3 month contract with carrot of full-time position dangling…) - though i would hope they would have notified me of that very important piece of info up front (prior to me doing report and prepping for interview) if that’s what they were looking for (no pay)

  • i find it a bit strange that i’m being asked to prepare another report - they’ve seen my work for previous analyst, is that not enough? just a little frustrating to now have to spend another few days working on a report, with no guarantee of work, as well as a much reduced position (ie. no idea on pay, term, likely no benefits, etc.)

I’ve already emailed back saying i’m interested (just getting in would still be welcomed for someone in my position), but I’m still curious what some of you make of all this.