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jerryking : equity_research   14

If I Were 22: Face It, You're Going to Be Kissing Some Career Frogs
May 19, 2014 | LinkedIn | Sallie Krawcheck.

At this early stage of your career, there’s a real temptation to go into a field of work because your friends are or because it’s “hot.” But there’s also an enormously small likelihood that it will still be hot 10, 20, 30, 40 years from now. So, rather than wedding yourself to an industry, instead shift your focus to gaining experiences and learning as much as you can, so that you build transferrable skills.

For you, Sallie-at-22, that will be in the banking and media industries; in the finance, marketing and sales functions; and in writing and financial analysis. Keep a running note of what works and what doesn’t work for you, what you like and what you don’t like, what you’re good and what you aren’t, the work styles that suit you and what doesn’t, where you passions lie and what leaves you cold. The chance of the stars aligning on these fronts in your first job, or even your first couple of jobs, is very low, so you’ll have to keep searching.

By building up this store of knowledge, you’re going to have what feels like a lightning bolt insight that you should be in equity research at the mature old age of 29.
career_paths  new_graduates  advice  trial_&_error  Managing_Your_Career  Sallie_Krawcheck  equity_research  journaling  reflections 
may 2014 by jerryking
The economics of equity research: Analyse this
Sep 21st 2013 | | The Economist |

Check out also Bloomberg Magazine or FT for articles on the future of equity research.

Independent providers do not have an answer to every problem: making research on smaller firms profitable is a perennial issue. But they do offer radically different services from the banks’ unimaginative valuation models. Bespoke services are in demand. Hedge funds now use research dollars to pay for ground surveillance on the progress of mining or oil projects in Africa, in order to value them better. Others take to the sky. RS Metrics, a satellite-intelligence provider, has reported strong demand from the financial sector for its aerial-imaging services. Some funds even hire former intelligence agents, from firms like Business Intelligence Advisors, to test whether corporate bosses are massaging the truth in investor meetings.
equity_research  hedge_funds  bespoke  Evalueserve 
november 2013 by jerryking
Prudential Research Model May Have Been a Dinosaur
June 8, 2007 | WSJ | Scott Patterson.

The decision by Prudential Financial PRU +0.70% to close its stock-research arm doesn't mean research is doomed, but it does signal an important shift. Deep-pocketed investors such as pension funds and hedge funds are hungry for exclusive, specialized research that can give them an edge over competition.

Experts say Prudential's research had become too widely distributed to draw enough interest, or dollars.

"The notion of widespread dissemination of a recommendation, that model is 40 years old," said Mike Thompson, director of research at Thomson Financial. "If you talk to the hedge funds, what they want are ideas that are actionable that not everyone gets."

The trend has given rise to independent, specialized research outfits. There are 63 independent research firms today, up from 14 in 2000, according to Thomson Financial.
equity_research  Wall_Street  investment_research  hedge_funds  pension_funds  exclusivity  nonpublic  slight_edge  proprietary  hard_to_find  novelty  interestingness  actionable_information 
february 2013 by jerryking
No salesman will call
March 31, 2006 | Report on Business Magazine | DOUG STEINER.
Yes, you can get free on-line investment advice that's solid and has no
strings attached...."Selhi's website focuses on advice about investing,
which is very different from investment advice. In recent years, he and
several other volunteer sages and coaches have been regulars on several
websites, and have got to know one another. Many of them are also
self-taught. Others are industry professionals who are retired or
disillusioned by the lack of truth about investing costs.

Together, this group has built a new website,
http://www.financialwebring.com, that is a forum for a low-cost
investing community. Through blogs, links and chat rooms, the site helps
everyone through every step and unspoken nuance of the investing
process. When I asked Selhi why he does all this, he responded with a
question: "Why do people volunteer?" He doesn't make money from his
work. The satisfaction comes from helping others. "
Doug_Steiner  investment_advice  free  DIY  advice  equity_research  disillusioned  investing  investors 
august 2010 by jerryking
Contrary Rules for Business Success
Jun. 24, 2009 | The Globe & Mail | by Harvey Schachter.
Reviews The Moneymakers, by Anne-Marie Fink, Crown Business, 310
pages, $32. Fink gets paid to separate the wheat from the chaff in the
corporate world or, to put it in business terms, separate the
moneymakers from the destroyers of shareholder value. Fink is an equity
analyst with J.P. Morgan Asset Management, she has billions of dollars
resting on her assessment of companies and their management.
equity_research  investment_research  books  rules_of_the_game  book_reviews  Harvey_Schachter  slight_edge  signals  noise  value_creation  value_destruction  shareholder_value  JPMorgan_Chase 
february 2010 by jerryking
Follow successful investment managers, you'll learn from them
August 13, 2005 | Globe & Mail ROB pg B7 | by Ira Gluskin.
"The first question that you should ask is why does anyone in the
investment industry want to be interviewed or quoted?...A tip to
facilitate your newspaper reading productivity... The most important
articles to read are by, or about successful investment managers.
Articles by or about investment executives and corporate executives come
next. Research analysts should be read afterwards. The last experts to
rely on are economists, with one notable exception. Jeffrey Rubin of
CIBC.".......Avoid all the articles interviewing Mr. and Mrs. Average Canadian who want to share their investment expertise with us. Certainly there are many astute investors out there in the real world, but the real world is full of experts on sports, movies and politics as well. However, the editors of these sections do not choose to air these amateur views like they do in the financial section. I repeat that I recognize that there are brilliant investors out there, but they don't have the discipline of achieving reported performance numbers like myself. This lack of discipline prevents the reader from knowing whether they are dealing with lucky or smart people.
Ira_Gluskin  investment_advice  in_the_real_world  Jeffrey_Rubin  Gluskin_Sheff  money_management  wealth_management  high_net_worth  Toronto  Bay_Street  reading  productivity  howto  economists  investment_research  equity_research  research_analysts  worthiness  discernment  smart_people  luck  investors  self-discipline 
october 2009 by jerryking
FT.com / Wealth - Star performer’s secret: he is smart
November 13 2006 12:26 | Last updated: November 13 2006 12:26
FT.com By John Authers reviewing Anthony Bolton's "‘Investing with
Anthony Bolton – the Anatomy of a Stock Market Winner’, by Anthony
Bolton & Jonathan Davis. Harriman House Publishing, £12.99."
book_reviews  stocks  equity_research  stock_picking  investing  stockmarkets  books  research_analysts  smart_people 
march 2009 by jerryking
FT.com / Wealth - Ask before you dive in and buy
November 17 2006 21:04 | Last updated: November 17 2006 21:04
FT Book review by By Anuj Gangahar of ' The Only Three Questions that
Count' by Ken Fisher.

Raising questions should be the constant mantra of investing.
books  book_reviews  equity_research  Ken_Fisher  investing  questions  think_threes 
march 2009 by jerryking
Prudential Research Model May Have Been a Dinosaur
June 8, 2007, WSJ letter to the editor by a Mr. Scot Patterson.
Points out that deep-pocketed investors such as pension funds and
hedge funds are hungry for exclusive, specialized research that can give
them an edge over competition.
hedge_funds  equity_research  due_diligence  scuttlebutt  exclusivity  ProQuest  private_information  inequality_of_information  slight_edge  nonpublic 
march 2009 by jerryking
Information Haves and Have-Nots - WSJ.com
Sept. 22, 2008 | Wall Street Journal | by L. Gordon Crovitz.
Piece on the ramifications of not having access to good information has
had on pricing securities. No one asks the right questions as research
analysts desert Wall Street.
======================================
...The credit crunch can be reduced to a single word. Not "greed," which also exists in stable markets. The word is "information," the absence of which has put taxpayers on the hook for billions, ruined Bear Stearns and Lehman Brothers, and led to the fire sale of Merrill Lynch and AIG. The continuing absence of information about the true value of underlying securities means no one knows when the market has hit a new normal for the important purpose of rebuilding.

Why did so many smart people at so many top firms make dodgy investments? Why were there so many unknown unknowns, now at least becoming known unknowns? One explanation is the absence of warnings from research analysts. For decades, the large Wall Street brokerages had armies of analysts who, when they did their jobs right, asked the hard questions and issued tough reports that often alerted both company executives and public investors to market-moving issues.

There are now about half as many Wall Street analysts as in 2000......."Research analysts have gone the way of high-button shoes and buggy whips." Alas, unknown risks have not. The now-former senior executives at Bear Stearns, Lehman and Merrill must wish they had been able to retain all their star banking analysts. Those analysts just might have waved enough red flags -- in public or even in the hallways of the banks themselves -- to alert management to risks in their portfolios......a few of those analysts left these Wall Street firms for the "buy side," such as hedge funds, which keep their research proprietary, for their own trading. Predictably, it was well-informed short sellers at these firms who first alerted the market to the true value of credit derivatives and other mispriced instruments by driving down shares of firms such as Lehman.

At a time when real understanding is at a premium, we're increasingly in a world of information haves and have-nots......A corollary is that proprietary information will be more valuable than ever, giving well-informed traders an even bigger edge.

What's the solution? The temporary ban on short selling of financial firms will have the unintended effect of worsening the information gap. Professionals will perform the equivalent of short selling through nontransparent instruments and markets, leaving individual investors to be guided by public share prices that no longer reflect all known information......Part of the answer came in news earlier this month that Credit Suisse will make macroeconomic research from its analysts available to noninvestor clients of Gerson Lehrman Group, a powerful force in the world of independent research such as for hedge funds. Equity researchers from Credit Suisse joined the some 200,000 expert consultants that Gerson Lehrman has attracted to its network.......Clients of Gerson Lehrman pay hefty fees to tap this deep knowledge through one-on-one phone calls and meetings. Serving these clients will help Credit Suisse fund its 700-person research department.

When Gerson Lehrman launched a decade ago, it was to serve the deep information needs of investors in highly technical areas such as health and biotechnology. As Wall Street analysts began to leave the scene, it brought on experts in virtually every industry globally, with 150 research managers to help clients conduct more than 10,000 consultations monthly. These are often on arcane topics, such as the likely growth in salmon farming in Norway, or the odds of success for a particular drug trial. Perhaps some research was even done on, say, the proper pricing of derivatives.

Regulators can try to put genies back in bottles, but complex financial instruments that, when properly used, create value will only become more commonplace. Innovation will also be required for better-informed markets. By recruiting a huge number of experts and using online social-media tools to connect them to clients, firms like Gerson Lehrman can bring information, knowledge and insights to the people who most value and need it.
arcane  asking_the_right_questions  buy_side  equity_research  expert_networks  financial_instruments  Gerson_Lehrman  hedge_funds  information  information_gaps  information-poor  information-rich  L._Gordon_Crovtiz  market_intelligence  proprietary  regulators  research_analysts  selling_off  short_selling  uncertainty  unintended_consequences  unknowns  Wall_Street 
january 2009 by jerryking

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