Observing body language to detect management lies

One of the most important jobs of an analyst is to assess the quality of management. We’d all like to know when the person on the other side of the conversation -especially executives of stocks we’re researching- is being untruthful or at least sending us down the wrong path. Even among those who has extensively… 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 »

7 traits of a successful equity research analyst

Unlike most financial roles, being an equity research analyst is an exciting and stimulating career with the added bonus that it can also be quite lucrative. However, not everyone is cut out for the job. Here are some attributes of great equity research analysts: • Intelligent: You don’t need to be the smartest person in… Read More »

Top 10 reasons why most research analysts get it wrong

Here are the reasons why most equity research analysts make the wrong calls or just fail to do a proper job. They… 1. Cover too many stocks or fail to effectively manage inbound information flow, which reduces the likelihood of identifying the unique insights required to generate alpha. 2. Fail to understand the critical factors… Read More »

Google is the new apple

As the stock market has currently been going through its greatest runs, most investors are looking forward to all those safe stocks that can easily offer them better returns and that at least match with the broader market. According to reports, over the past few weeks, S&P Depository Receipts has approximately offered 25% returns and… Read More »

The dark side of Kiva’s microfinance

Kiva is definitely one of the most uniquely powerful websites on the Internet because it allows citizens of the first world to give small loans to people trying to start a business or make ends meet in the third world. There have been plenty of differently people to come out in support of Kiva over… 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 »

Top private equity recruiters

Private equity recruiters have seen better days. Once upon a time, private equity firms did most of their hiring through recruitment agencies, but industry sources suggest that PE shops are now doing up to 75% of their hiring themselves. However, if you are looking for a new job, there is little to lose by contacting a… Read More »