I am not the only one in favour of the idea of ‘start investing young’.
Many believe that starting young will lead to a better quality life financially, which is true. I believe in starting young because it is an important step in building an investment banking career. Young Investor – When to start?
According to James Glassman, start young is good, at birth is nice. I come across one of his articles in which he describes the seven rules for investing young. The most predominant factor is ‘to start young’.Investment – What are the Benefits of Starting Young?
If you start young and have the right strategy, you don’t really have to worry about money in your life.
If you start young and get to know the market well ahead of your peers, you have a competitive advantage when starting an investment banking career.
If you start young, you don’t necessarily have to work for others. Like Tim Sykes, Michael Stahl and the TeenAnalyst trio, they are the bosses of themselves even before graduating.
If you start young, you are on the track to retire young and retire rich.Investment Banking Career – Best to Start Young
Of course not at birth, however the younger the better. Though there are rare cases that some successful investment bankers didn’t start young and didn’t come from a related educational background, it is important that you get yourself acquainted to the market and make your investment banking resume unique and outstanding.
Are you set to build an investment banking career?Recommended Career ToolsThese career tools are seriously short-listed by Anna Maria D'Souza for those who serious want to start an investment banking career.Amazing Cover LettersAmazing Resume Creator Secret Career DocumentHow to bring the concept of ‘investment’ into the life of a young person?
Make it a gift – if you have a teenage child, or want to encourage any young person to invest. Here’s a true story.
My boss has a friend whose daughter is also called Anna. On Anna’s 12th birthday, my boss bought her 100 shares of Esprit as a gift. Esprit was also listed in Hong Kong, so I copied his idea and bought some Esprit shares for my own birthday. In January 2004, the share price was HK$24.5 and today it closes at HK$120. While Anna is only 16 now, she already sees the power of investment and starts to make some trades on herself, though she hasn’t decided to make herself an investment banker.
Interest statement: Anna Maria D’Souza is not a current share holder of Esprit.
Investment Banking Career
As bonus announcement period is approaching, let’s review the top earners among investment banks in 2006.
Do You Want to be An Investment Bank CEO Or a Trader?
Guess who’s making a 9-digit income – a CEO or a trader. Read this post. Also read this.Top Players at Top Investment Bank - Goldman Sachs - 2006
Driss Ben-Brahim – proprietary trader – London
Pierre-Henri Flamand – principal strategies trader - London
Morgan Sze – principal strategies trader – Hong Kong
Read detailsMorgan Sze City: Hong Kong Firm: Goldman Sachs Age: 41
Estimated Income: $75-$100 million Source: Trader Daily, April 2007 FREE stock quote Stock Trading Robot How Much Does a CEO Earn?
In my last post, I mentioned the recently retired ANZ CEO John McFarlane. Rarely a CEO’s employment contract is published, but here is Mr. McFarlane’s.
Key terms of Mr. McFarlane’s contract extension are:
• a one-year extension to Mr. McFarlane’s existing contract until 30 September 2007
• fixed annual remuneration of $2,000,000
• target variable annual remuneration of $2,000,000 linked to annual performance
• long-term incentives, subject to shareholder approval at ANZ’s 2004 Annual General Meeting, comprising 175,000 Performance Shares. The shares will vest, subject to achieving performance hurdles in the period from 31 December 2006 to 31 December 2009. The total value of the proposed grant is estimated to be $2,500,000.
Source: ANZ press release 26 October 2004
Are you set to start an investment banking career?
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Retiring ANZ Chief On Carving Your Own Path
Though I believe firmly that it is important to start young if you want to build an investment banking career, there are exceptions. If you feel you want to join the field, do it.
John McFarlane, the ANZ CEO who stepped down by September 30, 2007, started his career at Ford Motors.
What Did John McFarlane Tell Graduates?
Here is an extraction of an interview published by Wall Street Journal on October 8, 2007 – the full article is only available to pay subscribers. Trying not to violate the copy right law, I can’t send you a link to read the full article, but extracted some content of interest to my readers.WSJ: What was your first job and what did you learn from it?
Mr. McFarlane: My first job was in the production area of Ford Motor Co. in England where I was a graduate trainee in 1969. I don't think you'll find tougher circumstances, so everything after that was much easier. But I learned about manufacturing, operation, cost control, and purchasing. I learned that I didn't want to be in manufacturing, and I went and did my M.B.A.
WSJ: Do you think people should go to business school or skip the M.B.A.?
Mr. McFarlane: Going to a quality business school does matter. It teaches you the language of business and gives you an insight into all aspects of business, so that you aren't likely to come across any problem of which you don't have at least a basic awareness.
WSJ: What would you tell someone starting out in your field?
Mr. McFarlane: In my conversations with graduates, one thing that often comes up is how to find a good balance between work and life. I simply say get a life. Work is important, but there are other things that are more important.
The other question is how to succeed. Essentially this is ensuring you are passionate about what you are doing and that you are good at it.About John McFarlane – A Short Bio
Born in Dumfries, Scotland, in 1947, Mr. McFarlane was educated at Dumfries Academy, later gaining an MA from the University of Edinburgh and an MBA from Cranfield. He advanced his finance studies at the London Business School.
Mr. McFarlane began his career in manufacturing with Ford of Europe in 1969, followed by a 31-year career in banking in Europe, Asia and Australia. Following 18 years with Citibank, ultimately as head of Citibank in the UK and Ireland, he became Group Executive Director of Standard Chartered in 1993, based in London and Hong Kong, and in 1997, became CEO of ANZ. He lives in Melbourne.
Source: ANZ website (published until September 30, 2007)
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