Equity Research FAQ
Hours: 40-80/week depending on earnings, roll outs, roadshows, marketing, etc...
Comp: 55-80 base for associates with 10-50% bonus
Prestige: No prestige in the firm you work for, more important is your analyst and if he has a marketable franchise. Working for a no name analyst at a BB is not as good as working for II rock star analyst at no-name shop.
Interviewing: Have a stock pitch ready (preferably in a sector/industry outside of the one you're interviewing in), be able to take a press release for earnings and sift through the fluff for important info and then writing a note on it, be able to build an iterative 3 statement model with a full comp table and DCF...
Exit Opps: B-school, HF, AM, IBD, Industry/sector you covered as management.
I think that covers it all, these questions are asked all the time. By all means please fill in where I may have missed something.





This is helpful, thanks. +1
This is helpful, thanks.
+1
Good info. I assume you're in
Good info. I assume you're in the industry, random question I always wonder, why don't you get the Cert User star?
A lot of people do certain things to add days to their life. I do things to add life to my days.
A Posse Ad Esse wrote: Good
Good info. I assume you're in the industry, random question I always wonder, why don't you get the Cert User star?
I am not interested in divulging the information to do that. You are correct, I do work in the industry though.
See, that's the only possible
See, that's the only possible reason I could come up with. Good to know I was on the right track.
A lot of people do certain things to add days to their life. I do things to add life to my days.
I just want to clarify what
I just want to clarify what he says only applies to research on the sell side. but kudos on the guide
Hours: 40-80/week depending on earnings, roll outs, roadshows, marketing, etc...
Comp: 55-80 base for associates with 10-50% bonus
Prestige: No prestige in the firm you work for, more important is your analyst and if he has a marketable franchise. Working for a no name analyst at a BB is not as good as working for II rock star analyst at no-name shop.
Interviewing: Have a stock pitch ready (preferably in a sector/industry outside of the one you're interviewing in), be able to take a press release for earnings and sift through the fluff for important info and then writing a note on it, be able to build an iterative 3 statement model with a full comp table and DCF...
Exit Opps: B-school, HF, AM, IBD, Industry/sector you covered as management.
I think that covers it all, these questions are asked all the time. By all means please fill in where I may have missed something.
What-to-do-What-to-do
I just want to clarify what he says only applies to research on the sell side. but kudos on the guide
I guess using words like Roll-Out, Marketing, and Roadshow (which could go either way) would have been a sign this is geared towards sell side research. Providing color on buy side research is very difficult as their are many intricacies that are firm specific.
ray, you should make a
ray, you should make a buyside ER FAQ and see what comparisons exist
Cosign the OP.
Cosign the OP.
If I had asked people what they wanted, they would have said faster horses - Henry Ford
Ray Finkle
I just want to clarify what he says only applies to research on the sell side. but kudos on the guide
I guess using words like Roll-Out, Marketing, and Roadshow (which could go either way) would have been a sign this is geared towards sell side research. Providing color on buy side research is very difficult as their are many intricacies that are firm specific.
i know i know i just dont want some newbs being confused.
On Buyside research: don't
On Buyside research: don't ask comp at BB vs Boutique; I speak for a lot of people in saying I would rather be a buy side analyst at several boutique firms than I would at GSAM. The BB buyside firms are as follows:
Putnam, T. Rowe, Fido, Wellington, PIMCo, BlackRock, Janus, Vanguard.
what about mutual funds like
what about mutual funds like franklin templeton & MFS?
I know someone who is a new
I know someone who is a new associate and makes near 100 base. Is this for real?
He did join after 3 years of working in a different industry, but nothing in ER.
Ray, could you please share
Ray, could you please share some insights on different BB's ER strength and current situation? Based on institutional investor, it seems that JPM, Barcap, and BAML are top 3 BB ER now. I heard that CS ER doesn;t have bonus this year. Nomura is expanding. GS and MS are ranked very bad (8th and 9th if I recall correctly) but MS hired a lot of senior analyst back to late 09 so they may come back this year.
I would also like to hear on your thoughts on culture and compensation at different BBs. I know GS is competitive while CS is quite laid back. Not too many ppl talk abt sell-side research here.
thx
runthetown wrote: I know
I know someone who is a new associate and makes near 100 base. Is this for real?
He did join after 3 years of working in a different industry, but nothing in ER.
Yes, this is absolutely possible. The majority of the Street, assuming you work for a BB or reputable MM/Boutique, pays associates in the $60-100K range for base. There are outliers depending on location, size of firm, your experience, how long you've been there, etc.
foreverbxr wrote: Ray, could
Ray, could you please share some insights on different BB's ER strength and current situation? Based on institutional investor, it seems that JPM, Barcap, and BAML are top 3 BB ER now. I heard that CS ER doesn;t have bonus this year. Nomura is expanding. GS and MS are ranked very bad (8th and 9th if I recall correctly) but MS hired a lot of senior analyst back to late 09 so they may come back this year.
I would also like to hear on your thoughts on culture and compensation at different BBs. I know GS is competitive while CS is quite laid back. Not too many ppl talk abt sell-side research here.
thx
I think culture is different from firm to firm. I guess JP has the best culture in my opinion as they retained a lot of ex Bear guys. Barclays retained a lot of the Lehman people and they are the most stuck up culture. Goldman I have no clue but I would guess it is pretty intense. BofA got a great staff with merrill but they are big deal chasers (Hank Blodget...). CS I think pays the best and it is supposed to be a great place to work. MMs like Stifel, KBW, RBC, Baird, and Blair all put out good stuff.. Stephens as well. Comp is pretty much the same across the street, it goes up with experience... I touched on that in my original post.
So I guess I would rank research like this:
1)DLJ
2)Bear Stearns
3)Lehman Brothers
So
CS
JPM
Barcap
Ray, thanks for your input.
foreverbxr wrote: Ray, thanks
sell side research at BB's
lifesgreatmystery wrote: sell
Ray, how many names do you
How useful is getting an MBA?
I notice that the older I am the more I sound like Illini Programer
- accountingbyday
FInkle, This is good stuff.
Steve Mallory
Ray Finkle wrote: Steve
ShawnDU2009 wrote: Ray
The Investment Banking side
Hey I am pretty new to this
CLE wrote: Hey I am pretty
Ray Finkle wrote: CLE
I notice that the older I am the more I sound like Illini Programer
- accountingbyday
To piggyback on the "talking
There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
Kenny_Powers_CFA wrote: To
Ray, This is a great thread.
Aces High wrote: Ray, This is
Ray Finkle wrote: Aces High
Ray Finkle wrote: Upon that;
What is the motivation of
susanchang wrote: What is the
There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
susanchang wrote: What is the
Ray Finkle wrote: Hours:
vitaminc wrote: Ray Finkle
40 hours is definitely low
No disrespect. Just pointing
How many stocks does the
Id say 15-20 is about the
bulgebanker wrote: How many
A few more Q's: 1. How much
Maherj1 wrote: A few more
my thoughts: 1) having a BB
Do most teams carry two or
Rule of thumb 6-8 stocks per