^i actually have not attended any networking events because of this…i dont really bring much to the table and i dont want to be viewed as what you are describing…because itd be a pretty one-sided networking effort…thats the reason for asking
Totally agree that one-sided networking efforts are worse than not networking at all. Without some sort of quid pro quo, there’s really no point trying to network. But, by trying to hone your own skills as an investor (such as reading the articles referenced in my signature below), you can put yourself in a much better position to add value rather than to mooch.
I can tell you the people that are most likely to get my attention are the ones that come at me with great investment ideas, and even better, offer to help me look at names that are already on my radar. I really couldn’t care less about somebody’s sob story since we all have one (no offense to you sentimentalists out there). Someone coming to me with a sob story means that they think their plight is somehow more important than anyone else’s.
In contrast, if some guy or girl is willing to run around town to do store visits or call a bunch of competitors/suppliers/customers to help with some stock I’m researching – and ultimately, if they can be some part of the formula where they help me make money for my fund – then I will go to bat for them with respect to forwarding job leads or career advice. Why? Because this is the sort of work that I need to do every day, and the easiest way to add value to my life is for someone to take some of that work off my plate. And if someone helps me make money, then I help that person get a job. Otherwise he or she is just some other person in New York looking to get something without giving anything in return, and there are way too many of those kinds in this shark-infested place anyway.
There is one story from someone on this forum whom I have permission to share. He is a student at a smaller state school that e-mailed me last August offering to help me with some equity research, since ultimately he was trying to get a job at a hedge fund. My initial thought is, why do I need this and how can this guy help? Can I even trust his work? Do I want to waste my time trying to mentor someone who might just be sucking information from me? I had all these red flags in my mind and the one thing that always carries a scarcity premium for me is time. But, here he was – didn’t even ask me for career advice – simply thought it would be ‘nice’ for him to learn about the business and thought maybe he could absorb something from me just doing some work alongside me, but mostly, he just seemed like a helpful guy that was really curious about finance.
Anyway, so there was a name that I needed help with but I didn’t have time to visit with a bunch of people in the supply chain, so I gave him a roster of parties I wanted him to dig up info on and if he was up to it, that would be great. If not, no big deal. Anyway, he probably spent all-in 25-30 hours trying to help me out, with the understanding that I was going to give him some occasional feedback and he could use this idea as something to pitch to potential employers. Stock ended up being a good short call, gapping down 15% on a missed quarter in a strong tape. Anyway, since he never had real investing experience he didn’t end up getting a job at a hedge fund, but through the process I tried to teach him how to talk finance and sound like somebody credible. Ultimately after I suggested how he might get in touch with a couple of VP’s/MD’s coming from a non-target, he networked like a beast, and ended up getting a job at a bulge bracket bank in investment banking.
So here is a guy on this forum that basically went from working the student store and cafeteria at his university for $12/hour, to getting what will be a $100K+ all-in compensation in his first year after graduation. In fact, this might be premature to say but I think he has a chance to be one of the best analysts in his investment banking class. Unlike some of his analysts who got the job because they were some trust fund baby, this guy earned his keep through nothing more than a blue collar work ethic and a willingness to break through walls.
Now, keep in mind that for every 1 of him there are 99 other people that don’t want to do any quid pro quo work and just get free handouts. So, if you want to be part of the 1% then this is one way to get there.
you realize you just opened yourself up to getting flooded with a bunch of people who will try to replicate EXACTLY what he did…both quality and non-quality…
i do appreciate you sharing that…interesting arrangement…so this person did most work by phone and traveled on his own dime? or was in the area already?
brilliant kid. respect
^ No, he’s from somewhere in the Midwest so he really had to work the phones a bunch, and occasionally drive 50-100 miles to go visit with some customers. I also asked him to send me a few stock write-ups upfront just so I could make sure he wasn’t just horsing around. But, it was really all on him – I said he could take it or leave it, no big deal either way since I know most seniors in college are more interested in getting wasted and hooking up with chicks.
But, externally of helping me out (he didn’t know me, just like I didn’t know him), I thought he really just treasured the learning opportunity. I was also hopeful that someone else would notice his drive and competitive spirit – we couldn’t hire him but I hoped someone else would. Ultimately, I think the investment bank that gave him an offer is going to be pretty happy with their decision.
Its a numbers game. Just keep trying. do different things. degaf. and dont be afraid to fail etc. the more you fail, the more you learn. That being said background is pretty important (most screen for it), but effort trumps it any day. When I had no experience, my cover letter said i was willing to work 100+ hours, they never held me to it. But looking back it was funny to see crap like that. Obviously, i’ve taken it off now since i am no longer as desperate for exp. But you get the picture.
wow…
definitely raised the bar to a whole new level. no doubt. thanks a bunch guys. point taken and i believe i may have a route in place but obviously will take work =)
nm.
I agree it’s a numbers game for the most part, and you have to be tenacious. However, you can also stack the deck in your favor by hustling hard and figuring out how you can help others. Much easier to ask for help in return once you’ve offered it first. Someone famous once said luck is what happens when preparation meets opportunity. I really believe that’s true.
Chance favors the prepared mind.