Becoming an Industry Expert
i was wondering if anyone could shed some light on how to become an "industry expert" in any given industry or coverage group? i was specifically interested if anyone (perhaps a season coverage banker) could give specific resources or processes that a beginner could follow to actually develop an understanding the dynamics and economics of certain industries. so far, i've decided that it would be beneficial to grab the annual reports of all the companies operating within that industry and read them back to front. on top of that, is there anything else that would help enrich the process?
bump
Bankers don't need to be experts in an industry - their job is to close transactions, not know how to build the best business in their respective sector. While a general understanding of an industry is beneficial, most of it will be learned on the job. With the exception of a few banks that specialize in certain verticals, you will be recruited as a generalist and placed in certain verticals after receiving an offer.
This isn't totally true. I'm a generalist and while I agree that a banker's crucial role is closing deals, there's a world of difference between my work and an industry expert.
Imagine you're pitching a space radiator manufacturer in Cambodia.
After a week you'll have the basic knowledge about space radiators and know who the buyers are based on random internet sweeps.
Meanwhile the industry expert will know what space radiators are from the get-go and KNOW all the buyers personally.
Guess which one is more likely to get it?
This also impacts the execution stage as well - guess who'll have the better templates for IM's, Models etc.? Shit, guess who'll actually HAVE any templates?
Obviously such focused industry groups don't exist, but there is still a much bigger overlap between the Industrials Group and the target and a Generalist, who was actually just buying a fin-tech company before they got this.
How to become an industry expert in hours (Originally Posted: 10/18/2010)
Was talking with an alum of my school and he said in order to do really well in an S&T interview you need to know the a few industries inside out, specifically those relating to the firm your interviewing for.
Been attempting to learn the mining industry inside out but would love some advice/other opinions
Read research reports on big miners. I've found if you read a few international corp research reports, and dig further while reading, you can learn a lot.
Where do you even go about finding research reports??
A lot of broker firms give them for free. Trade King is one example.
thanks baucee
Research reports are nothing but BS. Take them with a grain of salt. The real information is in the 10K's. Will teach you everything about the main drivers of growth, factors affecting profitability, expenses, MD&A, competitors, and a plethora of more information.
I'd recommend S&P, Moody's and Fitch. All 3 should be free and they have solid industry research.
10-K's are good or look at an industry outlook research report, or an initiation of coverage report on a business in that industry.
On a side note, no way you can become an expert on an industry in an hour. Some people spend their entire careers focused on one specific industry.
^^^He is right. I became an alternative's industry expert in about 5 hours though.True story.
An alum actually told me the same thing recently. What kind of things should I know about the industry? key trends, key players? anything else? I would really appreciate any insights from people in the industry. Thanks.
Why would any firm expect you to actually know anything at all?
What pricks! They should just hire people with no real knowledge whatsoever and just hope that they can pick up the slack and start making some real cash money.
LOL
The importance of being an industry expert as an IB Analyst ??? (Originally Posted: 01/16/2015)
Hi monkeys!
What are your thoughts on the importance of gaining industry "expertise" as an IB Analyst?
Execution used to be the best learning school as the role is extremely technical. Also, you will have deals to talk about if/when you decide to exit to PE. However, nowadays large groups at some BB are doing their modelling in-house and they don't outsource much of the excecution work. Therefore, it seems like working in such an industry team might even be better than pure execution as you also get to know an industry in depth. Does this make sense? I am missing something?
Thanks and happy new year!
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