This blog post is part of a series on things I learnt as a junior Investment Banker. If you're interested to follow the previous blog post, you can go here.
Photo by Hunters Race on Unsplash
I am biased to believe that one’s yardstick for success in any field is greatly determined not by the strength of their abilities, but by the rigour of their habits. In pursuit of building the latter, I want to offer more practical lessons that would be helpful for my future self and for any reader who may be interested to learn further about what it takes to be an Investment Banker.
Learning #3: Be prepared for anything
Someone senior to me once gave me wise words of advice- "It's never done until the money hits the bank". Truer words have not been spoken. Within whatever brief time I've already spent in the business, I've witnessed enough moments to realise that a deal could fall through at any moment. Sometimes it can be avoided, other times it can't. One thing is for sure, it stings every time.
If you've watched enough TV shows or attended career seminars, you will hear at least one person compare Investment Banking to a high-stress situation like a war-zone . I used to laugh it off earlier, but now I don't. IB is no less than being in the firefighting business when it comes to the mental fortitude required in dealing with fires. Those that assume otherwise, get burned (pun intended).
You probably have no idea what is going on behind a senior Banker's pleasant, smiling demeanour when you interact with such a person. Most senior Bankers I have met have gotten to where they are because of their ability to control stress and excessive emotional swings and continue to work like it is a fine day to be alive regardless of how the day actually is.
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A general note to incoming freshers- most things I say in this series will probably be relevant to other allied career roles like Management Consulting and even to CXO-level professionals. I thought you should know because these professions share similar characteristics by virtue of being in the same ecosystem as I mentioned in my previous blog post.
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It makes sense, therefore, to be prepared for anything at all times. There's a lot of shock and awe involved on a regular basis in this line of work so it is best to remain unfazed by any and all distractions, grandstanding, peacocking, filibustering, hard-balling during negotiations and submissions that either parties of transaction may be involved in. Be grateful on the good days, and keep your chin up on the bad days- you build a thicker skin over time anyways.
How to build mental fortitude to handle unexpected exigencies?
I have two suggestions that aren’t originally mine:
The OODA principle- I don't know who the original theorist behind the idea is, but I heard it from Jocko Wilink. OODA- Observe, Orient, Decide and Act is used by US Navy SEALs and other elite forces to eliminate/minimise the effects that brain fog creates in the moment in a high stress situation. Feel free to read more on the topic.
Learning from hindsight- This is a ritual we follow at my firm. At the end of every major deal, the VP and the Analyst or Associate leading the mandate gets to present their learnings and present any recommendations to deploy best practices for future mandates by evaluating their experiences in hindsight. The collective knowledge from the learnings of our peers (even at the juniormost levels) help us to defuse any 'sparks' before they even turn into fires. Why not use the same principles for your own self?
The next suggestion should be obvious to you by now.
Learning # 4: Take care of your physical health
Anybody in this line of work would relate that Investment Banking is tough business but luckily it is cyclical. There will be periods of lull (like the one I am using right now to pen down this note) as well as days when you are drowning neck-deep in work. It is your prerogative to ensure you are able to deal with stress at all times and that requires being physically healthy.
There will be times when prioritising health may not seem appropriate or worth it, but all bad habits will eventually catch up to you. Lack of proper sleep, inappropriate eating habits and schedules, along with myriad other bad habits that people near you tend to wear as badges of honour aren't actually all that glamourous.
I want to keep this lesson short. Ensure you keep yourself active consistently and get enough rest despite your schedules because it is vital if you want to keep working at high efficiency.
If that isn’t enough reason to stay healthy, do an observation exercise for yourself: notice what % of the uber-rich people you meet are overweight/obese. My personal observation suggests it is low. Rising obesity related to food insecurity/poverty is already a problem in developed countries, and is a trend increasingly evident in developing nations like India as well. Being fit is a status symbol for the rich- if you want to join them, be like them.
That’s it for this blog post.
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