🗞️This Week in Finance - May 5th 2025
Fed Holds Rates Steady - What That Means For You
On Wednesday of last week, the Federal Reserve held interest rates unchanged at 5.25%–5.50%, citing stubborn inflation but signs of cooling.
Why it matters: This could signal a slower hiring market for banks and consulting firms as companies remain cautious. Expect more selectivity in recruiting this fall. By the time this issue releases, Federal Reserve rates will have most likely gone down to 4.25%-4.50%.
Tip: Understand how rates impact valuations, debt financing, and DCF models. It’s a common interview question.
Buffett Retries as Berkshire Hathaway CEO at 94
Warren Buffett, known as the Oracle of Omaha, announced that he would hand over control of his company to Vice-Chairman Greg Abel and retire. Buffett notified the media of Abel becoming his successor four years ago, but never provided any indication on when we would step down.
What we can learn from his career:
Planning is crucial, even the most elite and legendary leaders need a plan for what happens after they leave
Buffett’s long-term success comes from patience, discipline, and investing in quality businesses over time. Long-term thinking works.
Warren Buffett focused on trust, autonomy, and picking strong managers. His leadership style is incredibly unique, take notes.
He’s not finished yet..
Warren Buffett stated that he plans on donating 99.5% of his remaining wealth to a charitable trust ran by his daughter after he passes away. According to Forbes, Buffet has a net worth of $165.3 billion, that would mean that Buffet plans on donating around $164.47 billion to his daughter’s charitable trust.
Quite the philanthropist!
🏦Term of The Week: Enterprise Value (EV)
Definition: EV = Market Cap + Total Debt – Cash
Used to assess a company's total value, not just equity. EV is a better metric than market cap for valuation comparisons.
Used in: M&A, LBO models, and interview technicals.
Example: If a company has:
Market Cap = $1B
Debt = $200M
Cash = $100M
→ EV = $1.1B
🚀Finance Career Tip: Start Your Resume Now, if You Haven’t Already
Even if you’re a freshman, start building your finance-specific resume. Include:
Finance/business clubs (real or upcoming involvement)
Excel/modeling courses (e.g., Wall Street Prep, CFI)
Mock interviews or competitions
Pro Tip: Turn class projects into bullets. Use action verbs and quantify results
📚What to Read or Watch
Mergers & Inquisitions – How to Break Into Investment Banking
Podcast: The Wall Street Skinny — careers & stories from IB insiders
🤝Final Word
Welcome to Campus Capital. Each week, we’ll break down the finance world in 5 minutes or less.
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