I am going to be a junior in college next year, and I am very interested in going into equity research. I am looking for book recommendations I can read over the summer to get a head start on interview season next school year.
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Ben Graham bro. Securities Analysis.
http://www.wallstreetoasis.com/forums/best-books-to-help-investing-skill
http://www.amazon.com/Paine-Webber-Handbook-Stock-Analysis/dp/0070595763
http://www.amazon.com/Best-Practices-Equity-Research-Analysts/dp/007173…
http://www.amazon.com/Whats-Behind-Numbers-Financial-Chicanery/dp/00717…
http://www.amazon.com/Quality-Earnings-Thornton-L-Oglove/dp/0684863758/…
That.
James Valentine's book is definitely the most practical for people on the job, especially if you're just starting out.
Given that you're breaking in, you might want to look at stuff like the McKinsey book on valuation (http://www.amazon.com/Valuation-Measuring-Managing-Companies-Edition/dp…) and the stuff mentioned above to sort out your technicals and make it easier to practice pitching stocks.
I would read Margin of Safety by Seth Klarman to develop a strong theoretical understanding of value investing. I think it articulates the main principles more clearly and succinctly than any of Graham's books.
Thanks for all the input. I'll try to read them throughout the summer
http://www.wallstreetoasis.com/forums/on-the-job-with-simple-as%E2%80%A… --- read the books in this link with BIWS or WSP
I would recommend the link above compared to the list below, the list is very comprehensive but since you will be joining a business school reading these should not be much of a problem by the time you are finished with your degree.. most of these books can be found online on torrents, 4shared, mediafire, etc but you should practice valuation modelling and analyses of companies on your own, making Initiation reports, Morning briefs, Sector Analysis, Update notes on companies, developing your questions for conference calls and site visits, just to understand the type of work you will be doing but obviously the client interactions cannot be practiced
however you can participate in competitions such as the GIRC of the CFA, Global Investment Contest, CIBC Equity Research Competition - Rotman, NYSSA IRC, try to participate in all of these if you can
General Direction Should be:- 1. Equity Modelling: 30, 32, BIWS, WSP 2a. Analysis: 8,49,51,50,52,53, 2b. Valuation:64/25/63,12/65/70,31/67/68,66,69,10,21,28,29 3. Investment Philosophy: 3,23,38,42,40,17,60,61,62 4. Investment Psychology: 3,7,20,43,56,57,59 5. Markets products/regulation: 27,41,48,44,46,47,16 6. Economics current/classic/theory: 14,34,45,35,6,2,5,4
this is great, +1
why Business valuation of closely Held Companies - Shannon pratt? Not that popular from what I have seen, especially compared to Mckinseys. But from what i read much easier read. Thoughts?
How does the equity and accounting portion of CFA Level 2 compare to reading the valuation/analysis books above?
only read Security Analysis and interpretation of financial statements for what I'd consider to be true valuation & accounting books. CFA curriculum is much more objective than any of the novels mentioned here, you'll learn a lot about what the stuff is and a little about what it means, but not so much how to use it. definitely worthwhile, but I think if you just learn CFA stuff without reading anything written by a practitioner, you'll turn into a robot
Valuation in the above readings goes into a LOT more detail compared to the CFA
The accounting analysis fundamentally will be the same because it is based upon the IFRS but the cases they (CFA or anyone else) use to illustrate accounting issues and their connection with valuation will vary, so for an even more in depth understand of the IFRS one should go for the following resources:-
1.Wiley IFRS 2014 Interpreteation and Application for International Accounting and Financial Reporting Standards (book/CD) 2.PwC Manual of Accounting and for a quick reference you can use the Deloitte IFRS in your pocket
do remember that the CFA curriculum of the Financial Reporting and Analysis for the 2014 papers is based upon the IFRS 2010
but these books have their limits, you should develop your own stock screening method, conduct your own research and at-least make a paper portfolio if not invest, some individuals might say that it will be pointless because of the timeliness of the information, as in that one will never be ahead of the analysts in the real world but then that would depend upon whether you are an investor or a trader and also the type of investor or trader... not to mention how you would see the information affecting your investments or trades
http://www.finaticsonline.com/Freebies/Stock_Selection_Techniques-Using…
http://www.zacks.com/screening/
http://pg.jrj.com.cn/acc/Res/CN_RES/INVEST/2012/6/11/811812f5-7b74-4f8f…
CFA level 2: learning how to swim using YouTube and on your floor
Reading real books: learning how to swim
do take the MBTI and the Big 5 Personality Trait test ... that way you will understand if you are suitable for equity research or some other career ... and at the same time make sure understand what equity research is like in terms of industry practices or work culture etc... this information will vary from country to country and to some extent organization to organization... this is just to make sure you do not end up choosing the wrong career and then 5 years into it you realize you hate your job/career etc.. the learning curve flattens pretty quickly in most careers
I visited sales, trading, and research when I visited all the major banks in NY a few months ago and I feel research is the right fit for me. I cannot see myself not working at a bank, whether it be Chicago or NY, out of college.
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