Goldman Sachs Interview
Terms in this set (27)
4 Ways investment firms make money
Investing and lending
financial advisory such as mergers and acquisitions, and underwriting, which is a promise guaranteeing payment in case of loss, or a promise to buy all unsold shares when new securities are issued.
Investing and lending
: just investing and lending money and making money on the interest. It's also like buying loans from other banks
This includes working with mortgage-backed securities, and trading credit products. Trading currencies and commodities, trading equities (value of shares in a company), and principal investments, which is where the bank makes its own investments.
this is where Goldman provides advice and financial planning services and offers investment products.
it's an investment program where investors provide money and the group sum is professionally managed and diversified across many different investments, thus reducing risk.
: Another example of an investment partnership. There are investors (limited partners) and managers (general partners). The goal is to maximize profits while minimizing risk (hedging against risk)
It's a contract between two or more parties and the value of the contract is based on the assets involved such as bonds and currencies
Goldman Sachs in the news with dark pools
Goldman Sachs on Friday will begin a reboot of its dark pool business as part of a deal with Nasdaq that is meant to boost competitiveness and offset regulatory burdens.
Dark pools are promoted as ways for asset managers to trade large blocks of shares without moving the market, but they are subject to less regulatory oversight and transparency.
Goldman Sachs in the news worried about Trump
Analysts at Goldman are worried that Wall Street is putting too much confidence in Trump's ability to get the tax reform done in the near future. Most investors believe that Trump will be able to do this, but analysts are worried that Wall Street has only received little evidence as to how the tax reform would affect them. One analyst noted that the top 10 states that will be affected by tax reforms will impact 46 members of the House, and not a single Republican senator.
Weakness 1: Receiving harsh feedback
In the past, I've had the tendency to take things personally and get offended > I've been working on being brutally honest with myself and not taking things personally while striving to accept and work on what is told to me.
Weakness 2: Too detail oriented
could slow things down, but I take a lot of pride in the work that I do and want to make sure that I always present my best possible work.
What are your strengths?
I am very tenacious and hard working. When I set a goal or am interested in something, I work very hard to achieve that goal or learn more about the subject. Share experience with math, both Calc 1 and Calc 3.
I am observant and like to innovate. I like learning about new processes, and then drawing on previous knowledge or researching more about it and improving where possible to make things more efficient. Example with glaze gun or air compressor.
Which of your skills and experiences make you appropriate for this job?
My curious mind and analytical abilities. I enjoy learning about new topics and mastering them by obtaining a very deep level understanding of how and why things work. I always ask "why" and do not like doing things just because that's the way it's always been done, or just out of blind faith.
Time management and prioritization. I always start on new assignments immediately and strive to complete them well ahead of time.
Why Goldman Sachs?
I understand that Goldman Sachs takes great pride in work they do, and that they place the customer's interests' first by doing things by the spirit and letter of the law. This aligns with my value of quality work. I strive for excellence in what is important to me, and doing quality work is very important to me. I would love to be surrounded by other individuals with similar mentalities. I also believe in being honest and transparent because that's how we can build further trust with clients.
I also noticed creativity and imagination are welcomed. Mention my desire to learn and innovate.
Advancement in company has lots of opportunity. I love having goals and major accomplishments I am working towards. I like how Goldman promotes from within and that there are many opportunities to grow and improve.
What makes Goldman Sachs different to its competitors?
I like that Goldman Sachs doesn't demand compliance, but that the employees are both free to and encouraged to disagree. I like this approach where differing opinions are welcomed in an effort to reduce the risk of groupthink and have major decisions made by only a few people and their individual interests.
Why do you want to work for this division of Goldman Sachs?
For Mutual Fund operations analyst: I enjoy risk management and calculating and modeling it with statistics. I would thoroughly enjoy learning more about applications of risk management in the real world, and understanding the complex trading issues mentioned in the job description sounds like it would be a great fit for me.
For Execution Services Analyst: My second favorite class at Weber State was International Finance and understanding at a somewhat deep level how money markets operate and the effects that banks can have on the economy. I enjoy problem solving and drawing on previous knowledge to improve processes.
What skills do you think are required to do this job?
Analytical aptitude and an inquisitive mind; always learning new and better methods.
Strong ability to collaborate with coworkers and work together on projects
Strong communication skills to explain concepts to clients or other individuals.
Can you talk about a mistake you made in the past, and how you overcame it?
S: Talk about experience with research paper about assuming what a variable meant for several months, how it ended up being something different
T: My teacher offered an extension since she knew I had been working hard all semester and we both incorrectly assumed what the variable measured.
A: I was able to obtain additional data, and while not a perfect substitute, I still came up with some interesting results and learned a great deal about the research process.
R: Even though the results I got were contradictory to what I had been researching all semester, I was able to come up with some valid potential reasons, and several professors in the Econ department were impressed with the work that I did.
Can you talk through a time you worked with a co-worker? How did you build that relationship?
S: At the Results Companies, we had a lot of downtime and some of my coworkers began to complain about being bored.
A: I tried to help pass the time by asking questions about them to get to know them better and tried to have my positive attitude rub off on them. I also helped them learn the programs we had to use and answered their questions.
R: We all became good friends which helped during the slower times and helped them have a more positive outlook on the job.
Can you tell me a time when you failed to meet a deadline?
S: Experience with Paul Wennerholm wanting me to help him figure out his GPS to go hiking with.
T: He wanted me to learn how to upload courses on his GPS to follow and teach him how to do it.
A: I was young (14 or 15) and couldn't really figure it out. I tried to figure it out, but it didn't look to me like you could do what he was wanting so I sort of blew it off.
R: Weeks later when he finally wanted me to show him what I had come up with, I had to tell him that I didn't really figure anything out. It was a valuable learning experience to never give up on something, especially when people are counting on you. To this day, I strive to get started on projects immediately and do whatever it takes to figure something out instead of procrastinating.
Which role do you usually play in a team?
I typically like to learn about what we're working on, become proficient in it, and then helping those around me achieve their potential and/or answer any of their questions regarding the project. I like to help out when and where I can.
Tell me about yourself. You have three minutes.
1. I am tenacious and dedicated to learning new concepts that are relevant
2. Time management
3. Innovation and creativity
4. Excellent organization skills
5. Committed to improvement and excellence
Your friend is cheating in a test. He's on his last warning. You're the only one who knows he's cheating. What do you do?
If I looked at this from a Kantian perspective and asked "What kind of world would this be if keeping quiet about unethical things such as cheating were the norm, what kind of world would this be?" I don't think it'd be a very trustworthy world, and probably not a pleasant place to live. As hard as it'd be, I think I would say something to someone for the benefit of a greater number of people.
What's been the most important experience of your career? Why?
I would say all the upper division math classes that I have taken. None of them were particularly easy, and often times I would feel discouraged and completely lost during lecture. However, I began to realize how strong my determination is because I began to accept that new topics would be difficult, but once I took a step back, highlighted what I needed to learn, and began learn those things one at a time, I eventually understood the topic on a deep level. This approach helped me be the top student in some of my math classes, and helped me learn how to never back down from a challenge or be intimidated because something seems hard at first.
Why am I okay with a contract position?
Because I have a desire to have a long-lasting and rewarding career, and I think this is an excellent opportunity for me to showcase my abilities and demonstrate how I can positively contribute to Goldman. It is also an excellent way to broaden my skills while helping Goldman reach their goals.