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    (Original post by TOTB)
    This question is aimed at people who have knowledge or are actually in the industry themselves.

    I have a fair idea of what area of finance interests me, which is equity research. But from the little experience I have, it almost seems that to be a success in finance, you need to live a lavish lifestyle (for the first few years especially). The issue is that I come from a very frugal background and appreciate the value of a pound, and do not see the point in wasting hundreds of pounds every weekend on stuff I really do not need. Don't get me wrong, I enjoy a few drinks after work and socialising with my colleagues, but I do not see the point in throwing away hundreds of my hard earned money on lavish restaurants and overpriced clubs. I'd rather go to theatres or go for a Mediterranean weekend if I HAD to spend my money on something. I'm just wondering if "living it up" is a necessary evil to succeed in high finance?

    Most certainly not. I put away about a grand a month in my base salary and invest all of my bonus. It just depends on how you want to lead your lifestyle. Many people have plush apartments or spend a lot at strip clubs/doing coke, but that's just silly. I think the recent credit crunch has humbled many people.


    You can earn a lot of money quite quickly in this game but you can be seduced by the lifestyle. It's about being responsible and level headed. And, it's all about about what you keep rather than what you earn.
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    (Original post by Lord_Farquad)

    If this doesn't appeal to you, I suggest you look into corporate finance, investment banking isn't for you. Don't worry, most people hate banking anyway, it's probably best you do something else.


    This makes absolutly no sense.... Corporate Finance IS investment banking....
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    (Original post by johnbarkwith)
    This makes absolutly no sense
    Exactly - and to think, these are the people giving advice/people are listening to.
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    (Original post by johnbarkwith)
    This makes absolutly no sense.... Corporate Finance IS investment banking....
    I think by corporate finance in this case they meant a finance department in an industry corporation, not IBD (even though IBD is often referred to as corp fin as well)
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    Is this thread still alive? :eek:

    (Original post by rboogie)
    Most certainly not. I put away about a grand a month in my base salary and invest all of my bonus. It just depends on how you want to lead your lifestyle. Many people have plush apartments or spend a lot at strip clubs/doing coke, but that's just silly. I think the recent credit crunch has humbled many people.


    You can earn a lot of money quite quickly in this game but you can be seduced by the lifestyle. It's about being responsible and level headed. And, it's all about about what you keep rather than what you earn.
    Cheers for that. As mentioned before, I've only work and socialised with a few senior brokers and lets just say their spending budgets were the last thing on their mind!

    I don't think it's a coincidence that some of the best investors are also very humble and frugal with their hard earned money. I really think that "emotional intelligence" is far more important in investing than academic intelligence. But that's another story...
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    Schwarzmann, kravis, cohen, ken griffin - all billionaires and all spend impressively.

    On the other hand feinberg, milken at his peak, leon black etc all much more modest.

    Basic point is you can find successful investors who spend lots and some who don't, they aren't strongly correlated imo.

    (Original post by TOTB)
    I don't think it's a coincidence that some of the best investors are also very humble and frugal with their hard earned money. I really think that "emotional intelligence" is far more important in investing than academic intelligence. But that's another story...
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    (Original post by jjpp)
    Schwarzmann, kravis, cohen, ken griffin - all billionaires and all spend impressively.

    On the other hand feinberg, milken at his peak, leon black etc all much more modest.

    Basic point is you can find successful investors who spend lots and some who don't, they aren't strongly correlated imo.
    These guys spend nothing compared to (most) of the Russians/Arabs (billionaires obviously). I mean obviously there are a few counterexamples, but there will be for most theories...

    Who are generally referred to as being the worst investors around / gained their wealth through some sort of shady deal.

    I think there is something to the idea that your lifestyle does affect your investment success etc. though it is probably not the most significant factor..
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    As a broad point, I think humility is really important in the markets. invariably, when you make you a stock call you are saying you are smarter than the market, so there is a natural arrogance to the job. However, you shouldn't let that become your existence because you will miss the other side of your investment case and get caught out - badly. I think it always a bad idea to be arrogant, because you'll never be willing to push forward and assume you're always right - which can hurt you in the long run.

    some of my very smart clients/friends at the biggest funds out there (GLG, Odey, Capital etc) are all pretty non-assuming humble people. But they are all razor sharp and take advantage regularly of the all-consuming arrogance in the city that leads to consitently poor decisions.
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    (Original post by texex)
    I think by corporate finance in this case they meant a finance department in an industry corporation, not IBD (even though IBD is often referred to as corp fin as well)

    haha, this just shows your IB naivity... "Corporate Finance" always refers to IB and NEVER to a finance department in industry... Corporate Finance is the most quintessential part of Investment Banking, things such as trading and wealth management should not even come under the term IB in my view...
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    (Original post by johnbarkwith)
    haha, this just shows your IB naivity... "Corporate Finance" always refers to IB and NEVER to a finance department in industry... Corporate Finance is the most quintessential part of Investment Banking, things such as trading and wealth management should not even come under the term IB in my view...
    All sector/industry teams in IBD are effectively 'corporate finance' teams, so yes, you are right.
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    (Original post by Teenage Pirate)
    These guys spend nothing compared to (most) of the Russians/Arabs (billionaires obviously). I mean obviously there are a few counterexamples, but there will be for most theories....

    Lucky the Russians spent it while they had it. From what I've read of late, and the amount of covenants in breach, looks like some won't see that extravagance again for a while, if ever!
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    (Original post by Breitling)
    All sector/industry teams in IBD are effectively 'corporate finance' teams, so yes, you are right.

    Although not quite - eg. Corporate Finance within an accountancy firm, eg. at PWC or KPMG. Or a Corporate Finance advisory house.
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    (Original post by johnbarkwith)
    haha, this just shows your IB naivity... "Corporate Finance" always refers to IB and NEVER to a finance department in industry... Corporate Finance is the most quintessential part of Investment Banking, things such as trading and wealth management should not even come under the term IB in my view...
    If you read it in context, you would see that I was clarifying what I think a previous poster was trying to say.

    I completely agree, S&T brings in way too much revenue to be associated with corporate finance guys under the label IB.
 
 
 
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