Decoding ‘Billions’: An Investment Professional’s Perspective”

I recently discovered a Netflix series called “Billions” (I know I’m late! Almost everyone in my workplace watched it years ago). I was amazed by the series because it provides great detail about the investment industry. I’ve watched many series where the main characters are doctors, art curators, book editors/publishers, and physicists, but never one about a portfolio manager. So, you can imagine my excitement when I finally found a series representing my profession.

I’m currently on the 8th episode, and I can’t help but wonder how people outside of the industry perceive us after watching it. I wonder if they are curious about how much of what is shown on TV happens in real life. The answer is quite simple. Like most TV series, some parts of it are surprisingly accurate, while others are an exaggeration of an average day. As someone who works in the industry, I’d like to share my thoughts on what was depicted accurately and what wasn’t.

It is a fast-paced environment, and time is always of the essence.

In trading, every second counts. Market prices change rapidly; thus, someone constantly monitors the trading desk. This is one of the reasons we can hardly gather everyone in the same room at the same time because there must always be someone keeping an eye on incoming unsolicited trades.

There is a lot of networking involved.

The main character in the series is often not present in the office. This is particularly true for investment advisors who are in search of prospects. They usually have a team of people who handle portfolio management, trading, and administrative tasks, similar to my 9-5 job. Meanwhile, they frequently travel for business and attend conferences and networking events. How do they find other high-net-worth individuals? Well, they are one themselves. The circle of such is small, so once you get in, you’ll see your way around through referrals.

There is a strict compliance system behind every financial institution.

All of my colleagues are professionals who possess the necessary degrees and certifications. In my opinion, it’s not worth losing their licenses over insider trading or fraud. Additionally, there is a strict compliance system in place in every financial institution. All financial institutions are regulated or overseen by a governing body. At my workplace, compliance is of utmost importance. Everyone is responsible for ensuring no one engages in illegal activities or violates internal policies and procedures. Therefore, insider trading and fraud are not cool, but compliance is!

About 95% of the job is administration.

Because no one runs around all the time saying they made millions from a trade. There are numerous administrative procedures and formalities involved in every transaction. It has to go through various levels of scrutiny and authorization, both before and after the transaction. Even opening a brokerage account could be time-consuming as thorough background checks are carried out to ensure everything is in order. Your investment objectives are checked against your risk tolerance and appetite, and just because you have funds doesn’t mean you can trade all securities or enter into complex contracts as you wish.

Some people might have different opinions about the industry, but from my experience, the job has excellent compensation and growth, but with hard work and sleepless nights as a tradeoff.

Let me know your thoughts!