Hi
I have a question regarding MBB specifically. I have heard that MBB does not allow thier consultants on a certain project to trade in public stocks. Is that true?
Also if that is true then how do Consultants manage and grow teir wealth overtime. Obviously they are not stupid to just spend and not invest.
Thanks in advance
Hi,
At Bain, we had a list of "do not touch" companies , which usually consists of current or recent past clients, as well as potential clients. The list gets updated regularly. Outside the list, there was no additional guidance on trading rule
Basically the point is to make sure you do not come close to inside trading or even suspicions of inside trading.
Best,
Oussama
McKinsey does not allow you to trade any public stocks. Typically, consultants invest in index funds, ETFs and 401ks.
Hi,
generally true. Some firms introduced a policy that you are not allowed to trade individual stocks at all.
You can however invest in ETFs, Index, etc.
Best,
Lukas
Hi :)
Yes, you’re right. If you’re staffed on a project with a publicly listed client, you’re restricted from trading that company’s stock during and shortly after the project, to avoid any conflict of interest. But it doesn’t mean you can’t invest at all. Consultants typically invest in diversified instruments like ETFs, mutual funds, index funds, or real estate, where there’s no link to specific client projects. Firms also offer retirement plans and savings schemes that make it easier to grow wealth in a compliant way.
best,
Alessa :)
Trading =/= from holding stocks.
You can have an ETF. You can acquire diversified funds. Depending on the firm, you may be able to hold individual stocks at certain times, but at some points in time you may not be able to buy or sell them (usually when mckinsey is doing work with them + some additional period).
