Category Archives: Best practice

7 skills to boost your influence as an analyst

The best equity analysts routinely use their influence to be more effective. In almost any task of an analyst’s job -whether speaking to management, investors or portfolio managers one-to-one or just sending an emailing to a random potential information source-, there is an influencing element involved. There are a number of important skills required for… Read More »

How to identify and monitor the main drivers of a stock

The most distinguishing element of great analysts is that they spend a disproportionate amount of time on the few drivers that are likely to move their stocks. This approach turns the traditional company analysis on its head because they’re not attempting to know everything about their companies. The problem many analysts have is that they… Read More »

10 time management tips for equity research analysts

Everything analysts do during the day should contribute towards the primary objective of identifying mispriced securities, or in the case of sell-side analysts, helping clients identify mispriced securities. If the activity doesn’t meet this objective, you should stop doing it. For the buy-side, stop taking calls and reading e-mails from those who don’t help the… Read More »

7 tips to optimize your stock coverage universe

Long term career success or failure for equity analysts is many times dictated by the universe of stocks they are initially assigned to cover. Early in their careers, most buy-side and sell-side analysts have to accept whatever they’re given. But if at some point you are asked to provide input in defining your stock universe,… Read More »

The 8 principles of a good equity research analyst

Although every problem should be solved with its own unique tool, here are some principles that transcended the specifics and govern the broad equity research practice: 1. Be sceptical. Very sceptical, and even more sceptical. Great analysts rarely accept anything at face value. Douglas Cohen, who has spent 16 years at Morgan Stanley as both… Read More »

How to analyze a stock

INVESTMENT FRAMEWORK Industry Study Is this a good business? What are the key success factors to superior performance in this industry?  (Value Added Research “VAR”) Define the market opportunity.  How do competitive products address this opportunity? What are the barriers to entry (“moats”)? (VAR!) What is the relative power of: (VAR) Customers Suppliers Competitors Regulators… Read More »