I am currently in a junior equity research role and I'd like to ask for some advice on how to remember the massive amount of data I am put through. in fact, altough you may instantly object: "oh boy, you only got 7-8 names and you got to remember only important stuff, the kind that moves the stock etc etc": I agree (and it may very well be that I am doing something deeply wrong) but unfortunately:
1) I (or to be more precise and true, my boss) have clients who can ask the most trivial details and we are expected to answer (boss says: "the junior is deep with the numbers, ask him" at which point you could picture me getting very pale). 2) I cover Media, Telecom and Publishers which have like 5 business units each (each with different strategic analysis, competitors, problems, stuff to know) with TLC having an unholy amount of data to be remembered. so 7 names are not THAT representative 3) to answer the classic question: "but to be a good pick, how many "random business input" do you need to have on this / that / that other one?" which requires additional supporting data. the mosaic theory does not come cheap in terms of required information 4) the usual Q/H/FY information (generally Q+Q / H / FY) plus some historical data for investors who are not familiar with the name on everything. I got to know gross/ EBITDA / EBIT margin / capex / rev growth, and it's better to know those for each division. 5) Sector stuff: all kinds of data here 6) guidance; target exec said X, but thought Y and managed to deliver Z 7) macro: I assume that if you are a good salesman, data here are not that important, but to comfortably move and to pick what you need to quantitaevely substantiate your thesis is, in my opinion, a big plus (at least I would think so if I were on the other side because I'd think the Analyst may not be a total corporate-access-tool)
honestly I am overwhelmed, thus seeking advice. how do you handle this much?
Remembering Financials (Originally Posted: 07/26/2014)
Designation wise I am responsible for Capital Goods industry, but given the boutique nature of my firm I have to work across the industries. I am able to understand business models while I am researching or making a pitch book.
However, many a times after 3 months of pitching a partner comes up and asks what were the margins for this company/industry and I've trouble remembering that.
How do you guys remember financials (key BS and PL line items). I am thinking about reading some mnemonics books, are they helpful?
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