You’re an investment banker who wants to stand out. How can you use logical reasoning to do so?

1 What is logical reasoning?

Logical reasoning is the process of using facts, rules, and principles to draw valid conclusions or make sound arguments. It involves identifying premises, assumptions, evidence, and implications, as well as detecting errors, flaws, and fallacies. Logical reasoning can be divided into two main types: deductive and inductive. Deductive reasoning starts from general statements and derives specific conclusions, while inductive reasoning starts from specific observations and infers general patterns.

2 Why is logical reasoning important for investment bankers?

Logical reasoning is essential for investment bankers, as it allows them to analyze, problem-solve, and make decisions when performing various tasks. For instance, logical reasoning can be used to evaluate financial performance and prospects of companies and industries, conduct due diligence and market research for mergers and acquisitions, prepare pitch books and financial models to present arguments to clients and investors, communicate persuasively with stakeholders such as senior bankers, analysts, lawyers, regulators, and media, as well as develop creative solutions that address dynamic challenges in the market.

3 How can you improve your logical reasoning skills?

Logical reasoning is a skill that can be learned and improved with practice and feedback. To enhance your logical reasoning abilities, try reading books, articles, and reports related to investment banking, finance, economics, and business. Pay attention to how the authors structure their arguments and use evidence. You can also solve puzzles, games, and exercises that challenge your logical thinking. Consider taking courses or workshops that teach you the fundamentals of logic, critical thinking, and argumentation. Don't forget to seek feedback from mentors or coaches on your logical reasoning performance; be open to constructive criticism and learn from your mistakes.

4 How can you apply logical reasoning to your work?

Logical reasoning is not only a skill, but also a mindset that you can adopt and apply to your work as an investment banker. Before beginning any project, it is important to define objectives, scope, and criteria - while also identifying key questions, assumptions, and hypotheses that guide the analysis. Additionally, reliable data and information should be gathered from various sources. During the analysis, deductive and inductive reasoning can be used to draw conclusions and make recommendations. This process should also involve testing hypotheses, checking calculations, validating results, using models, frameworks, and metrics to support arguments, and communicating findings in a clear, concise manner. Additionally, it is important to anticipate and address potential objections or counterarguments from the audience. Throughout this process, one should monitor their logical reasoning performance and seek feedback from others to identify areas for improvement. By improving and applying logical reasoning abilities, one can enhance their analysis skills and deliver high-quality work that meets the needs of clients and employers.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?