Why Goldman Sachs Interview Questions
How to answer the question "Why Goldman Sachs?"
Goldman Sachs (often abbreviated as GS) is an American company specializing in investment banking. The company also offers other financial services. The firm operates in 30 countries. Some of the main locations are Brazil, Germany, and the United States.
By revenue, the company is the second-largest investment bank. The company is a part of the Fortune 500 as well.
Before even applying for a position at Goldman Sachs, be mindful of the company’s interview process. Learn about it
here. It is also important to attend virtual and in-person events. This demonstrates interest.
GS’s application process consists of submitting the application, performing a HireVue virtual video interview, a HackerRank assessment for those applying for an engineering position, and then SuperDay.
‘Superday’ is the final interview round at investment banks. At GS Superday, candidates may be interviewed anywhere from 2 to 5 times.
Shortly after, the GS team will extend offers to those who are selected via email or phone. To learn more about the firm’s interview process, read this. Information about the company, in general, can be found here.
Goldman Sachs Interview Tips
Here are some of the interview tips that might help you:
- Be specific: Describe moments as best as you can so that companies can keep accurate records of what was said. In-depth answers will allow the review board to go back to specific parts of your answer.
- Focus on skills directly applicable to finance/investment banking: How are your quantitative skills? Can you make financial models, analyze data, value a company, etc.? Make sure you can do all of these and more. As a good resource, use the Wall Street Oasis for learning definitions and even take courses that can teach you exactly what you need to have a successful interview.
Note
Get in touch with GS employees and learn what they love to drill applicants on.
- Dress professionally: Do not overlook your appearance. Be professional, you are there for a formal interview.
- Understand different financial statements: A job at an investment bank entails looking at financial statements. Be able to evaluate a company’s financial health. How do the various financial statements relate to each other?
- Showcase what you know: As you are interviewing for a prestigious financial firm, be prepared to answer questions about the markets. Understand events that affect the market as a whole as well as events directly related to Goldman Sachs.
Note
Highlight what you do well. If you must talk about something you are not good at, speak of it from a development point of view. Say that you will work on a certain aspect, and the job will allow you to do so.
- Think outside the box: If you are applying for a GS role, odds are that your finance skills are top-notch. You are not going to impress your interviewer by reciting what a cash flow statement is, how to value a company, etc. Win a spot in GS by showing how you think. Investment banks are always in high-pressure situations. How well do you adapt to the moment? Be able to explain your decision process while still embodying the values of the company. Couple that with strong financial skills and you will land an interview for the next round.
- Ask questions: Whenever the interviewer asks if you have any concerns or questions, make use of the opportunity.
Note
Always ask at least one question.
Some examples of questions include:
- Are there options for career progression in this role at GS?
- How do employees at GS balance work and life?
- What are some of the team’s current tasks?
Just ask something that shows you care about the company and your fit in the company. Interviewers take note of this and may put in a good word for you as you are engaged.
- Tailor your answers to the job requirements: One of the main criteria GS looks at when narrowing down the applicant pool is how well the applicant fits the job requirements. Review the job description ahead of time and prepare your answers so that they showcase what you can do concerning what the job requirements say.
Why Goldman Sachs Interview Question
Every bank has this one question – “Why Goldman Sachs?” The answer you give to this question is a crucial criterion by which the company makes a hire or not.
Although the question is very basic and seems surface level, the true answer GS is looking for is about your motivation and personal story.
Why do you want to work at GS? How will you be different from every other employee? What do you bring?
Tips to make your answer great are:
- Showcase what you bring to the firm
- How you can grow
- Use a personal anecdote
- This makes the answer more personal
- How GS’s values resonate with you
- Do not bring up the salary
A sample response is:
“I am thrilled to interview for Goldman Sachs. The company’s commitment to excellence and historical performance in finance made me realize that this is the firm for me. I am a hard worker, and I believe I embody the company’s values.
Goldman Sachs is a connected firm. Employees discuss with each other, and everyone gets to know one another. I admire this in a firm. Everyone is more than an employee. GS prioritizes the individual.
As a top bank, the work performed daily is ever-changing. I am interested in M&A and like a dynamic workplace. I love GS’s scope when working with clients on M&A and that the work is never the same as the day before.
Another reason why GS caught my eye is because of the company’s role in the social scene. I think more firms need to pursue CSR in the manner that Goldman Sachs has because it is truly inspiring.
I would love to be a part of such a diverse environment.”
Goldman Sachs Interview Questions: Behavioral Questions
During the GS interview process, one will be asked several behavioral questions. You may be asking a behavioral question. These questions understand how a candidate demonstrates GS’s core values.
How do you handle different situations? How do you behave in a high-pressure situation? What experiences do you have that will suit you well for this role?
All of these answers come out in behavioral questions. GS will evaluate if the company is a fit for you. Be prepared and have thoughtful responses to the behavioral questions. Do not overlook these questions.
It is important to highlight your actions, the challenges you have endured, and the outcomes. These answers should be drawn from professional experiences.
Examples of behavioral questions include:
Answer this question by emphasizing what you learned. You made a mistake. So what? It’s ok. Everyone makes them. What is more important is what you learned from the experience.
An answer to this might look like this:
“I overlooked a crucial detail when making a report one time. I did not catch my error until I presented the report to my team. Some figures were very wrong and portrayed errors in the company’s gross sales. I admitted my fault and asked for an extra day to work on the report.
My team allowed me to do this. I fixed my errors, and everything went smoothly.
This experience taught me to own up to errors and always double-check work.”
Answer this question by showcasing problem-solving skills. Usually, a demanding client makes for subpar work experience. It is important to describe the client’s high demands and what you could do to work with them. How did you work through the problem?
An answer to this might look like this:
“During a consulting project, my client had high asks and asked for revisions about 8 times in the week leading up to the project delivery. It was inconvenient, but I listened to their feedback and made appropriate changes.
My team and I were flexible, and we sat through a full-day review system where we walked through each step of the project delivery with the client to ensure we addressed all of their requirements.
By being accommodating, we delivered the project successfully, and that client is now a longstanding client of the company.”
Answer this question by explaining why you had to make a decision during that uncertainty. Back up your decision. Do not seem doubtful about your decision, as that portrays you as diffident.
An answer to this might look like this:
“In a previous role, I was tasked to analyze a client’s demands and propose a reallocation of resources for the client to prioritize efficiency. Last minute, the client changed their budget. This gave me little time to respond. The meeting with the client was the following day.
I spoke to some team members, and we came up with a new proposal. When we presented to the client, we made sure to emphasize that we made a decision while in an uncertain situation. Thankfully, the client approved of the new ideas and applauded our responsiveness.
Making the decision confidently helped the team and me work around a budget issue and deliver the project to the client professionally.”
Answer this question by setting the scene first. This provides context for the interviewer. Make sure you describe your feelings of empathy. As an employee of a firm, you need to showcase the firm’s commitment to the client. What was wrong? How did you address it?
An answer to this might look like this:
“At my previous job, I worked with a client who needed a project delivered urgently. However, the company could not get the work done that quickly. I met with the client to understand their concerns, explained why the deadline was not feasible, and made the client reassess.
The client changed the deadline, and we worked with them for future deals and promised a better outcome.”
Answer this question by being honest. If you have the experience, speak about it. If you do not, say you do not. Don’t exaggerate what you have done. That being said, say that you welcome the opportunity to present to a large audience if the job calls for it.
An answer to this might look like this:
“I have never had to present a pitch in front of a large audience. My work in previous roles involved me speaking to, at most, 15 people in a small meeting room.
Although I do not have the experience, I look forward to speaking publicly if this role needs me to.”
Answering behavioral questions is not a challenging task. Just try to understand what the questions are asking. Provide specific details, utilize the STAR method, and connect to GS’s values.
Goldman Sachs Interview Questions: Technical Questions
While behavioral questions aim to understand you as a person, technical questions are designed to evaluate a person’s thinking process and knowledge. Landing that dream job goes beyond just the interpersonal skills; how well do you know your stuff?
Technical questions allow companies to see a candidate’s ability to apply theoretical concepts, their understanding of the industry, and their problem-solving skills.
Goldman Sachs’s interview questions vary from candidate to candidate. The questions depend on the industry the candidate hopes to work in and the position they are interviewing for.
To be prepared for technical questions, it is advised that candidates stay up-to-date with the news and understand industry developments.
Additionally, understand the job requirements and make sure you have experience for whatever is required.
Examples of technical questions include:
“Equity research involves more risk. This type of research evaluates stocks by considering company financials and the nature of the industry. Fixed income research mainly looks at debt securities and assesses credit.”
“GS advises clients, structures deals, helps with negotiations, and provides tools for valuation. These services allow clients to succeed in these M&A deals.”
“The Black-Scholes model determines the theoretical value of an option. The model considers cumulative distribution function, time, stock price, strike price, risk-free rate, and volatility."
“Artificial intelligence can process data rapidly, generate models for options and other investments, and assess risk.”
Take your time with technical questions. Understand what is required of you for the role, have solid examples prepared, and explain your problem-solving approach.
Conclusion
Hopefully, this article helped with what to expect for interview questions at Goldman Sachs. The firm is a leader in banking and financial services. It’s important to prepare for such a reputable firm.
Do not expect it to be a ‘walk in the park.’ Every word of your answer should have a purpose and demonstrate your breadth of knowledge and personality.
No one way of preparing will work for everyone. Each interview is a learning process. Read as much as you can about the company, and you will figure out the way that works best for you to prepare. Remember, you are not alone in this.
Do as many practice questions as possible, both behavioral and technical. The questions will most likely be very different during the actual interview. But, at least you gain the experience of answering the questions.
Experience is the key. Interviewers can tell if you practiced the day before. Practice, and then you will be calm and collected. Don’t worry. You got this! This article, the Wall Street Oasis website, and the GS company site are great resources to check out.
Good luck with your applications and interviews!
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