Banking is a strange and amazing world. It’s been around a long time and has amassed a variety of forms and traditions. One of those forms is investment banking. Investment Banking can be a rewarding field that can provide amazing returns for investors. But how do you get those amazing returns? You have to have a keen eye either personally or you need to engage the services of a firm that has a solid eye.
Is solid eye enough? That’s a relevant question. You can have a solid eye once and that’s great but what about the next time? That’s why you need to look for track record of solid investment and return. If you can’t find that then you might as well sit around and give money to people you think look trustworthy and see what happens. The truth of the matter is that an investment banker is doing something similar. The difference is that the right banker and the right firm have analyzed the data repeatedly and have a pretty solid idea of who is and isn’t a safe bet when it comes to handing out your money. The great ones are getting more back than an apologetic shrug.
Let’s look at an example of a good investment banker. What if you could weather a major fiscal down turn by making sure you had real time market data because of you had a satellite up link pulling that data? What if your first major investment activity was capitalized by friends and family? What if one of them was your grandmother and the down turn hit while you were in this early process and you saved and grew that capital? That’s what Ken Griffin did, and he did it in his dorm room at Harvard during his sophomore year. The down turn was in 1987 and Griffin had only begun his investment practices the previous year after reading an article in Forbes. That early success let him start a second fund and by the time he graduated in 89 he was managing over a million dollars. He went on to receive an additional million from Frank Meyer of Glenwood Capital LLC and manage a seventy percent return on that money. This all happened before Ken Griffin founded Citadel his own investment firm.
This is what a great investment banker looks like. One who makes sure he has data ready and knows how the market works in order to leverage that data and keep the capital trusted to them safe. Not only do they keep that capital safe they can grown and provide return on it. Now not every investment is going to be a seventy percent return and not every investor is going to be a sophomore wonder. Every investor should be willing to go to the lengths Mr. Griffin did to protect the investment that they were trusted with.
If your investment banker isn’t doing that for you, if they aren’t willing to fight for your investment and defend it like was their own money they were tossing around, you should find a new investment banker. I hear Citadel is pretty good.