Difference between sell-side and buy-side equity research (culture/ atmosphere, salary, career paths, etc.)?

Hi, I'm very curious about the difference between being a sell-side or a buy-side equity analyst. Of course, one main difference is that you don't talk to clients when you are a buy.side analyst and that your reports aren't published, as they are for internal use only. but what else? do pay (of course comparing apples with apples, so top bb with top asset manager e.g.) and hours differ significantly? hierarchy different? culture?

thanks a lot for any insights!

Buy-side pays more. Buy-side can be more or less hours, it depends (much more results driven; hence less emphasis on hours; more on whether your recommendations pan out or not).

A buy-side research analyst has more places to go within the firm than a sell-side one. Culture varies a lot from firm to firm, regardless of buy-side or sell-side.

 

Buy-siders don't really 'cover' companies in the sense that sell-siders do. A buy-sider can look at a company, decide they have no interest in it, and move on and never look at that company again. Because of this need to be able to evaluate a large number of companies, they tend to cover an entire industry (e.g. energy), or often times even multiple industries, where a sell-sider will cover a sector (e.g. oilfield services) within a single industry.

The main purpose of sell-side research (driving commissions and supporting IB deals asides) is to conduct on-going research on a given set of companies. The main purpose of buy-side research is to find an idea you have enough conviction in that you can actually act on.

 
whatwhatwhat:
MFFL:

decide they have no interest in it, and move on and never look at that company again.

no

More or less yes. If I find that a company wont fit our strategy I don't need to look at it again until it hits our watchlist price target or never again if we don't like management.

Follow me on Twitter: https://twitter.com/_KarateBoy_
 

Definitely the MF gig, assuming the buy side is a part of your five year plan.

Pay always sucks on the junior level no matter where you are. The difference between 70K and 80K base is nothing in the long run. On the buy side you'll likely get the same technical experience and (most importantly) you'll be trained to think like an investor. The focus is different in sell-side ER, and getting in on the buy side is way harder than getting in on the sell side IMO.

 

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