I want to learn as much as possible about ER

Hey folks,

Currently getting ready to enter the whole recruiting process bullshit and honestly I feel somewhat unprepared. I have a passion for investing and the markets, but I just feel like I don't know enough.

Any and all insight on what to watch, read, do, or digest (Adderall is already prescribed, think bigger) to help me really dial down my markets knowledge and make a good impression on my networking calls and interviews would be great. 

8 Comments
 

To crush your preparation for Equity Research (ER) and build a solid foundation, here's a roadmap based on the most helpful WSO content:

1. Build a Strong Knowledge Base

  • Books to Read:

    • Security Analysis by Benjamin Graham and David Dodd – A classic for understanding valuation.
    • Damodaran on Valuation by Aswath Damodaran – Essential for mastering valuation techniques.
    • One Up on Wall Street by Peter Lynch – Great for understanding how to think like an investor.
    • Margin of Safety by Seth Klarman – A must-read for risk management and value investing.
    • Irrational Exuberance by Robert Shiller – Insightful for understanding market psychology.
  • Publications:

    • Regularly read the Wall Street Journal (WSJ) and The Economist to stay updated on market trends and macroeconomic events.
    • Use Investopedia and Wikipedia to fill gaps in your understanding of financial terms and concepts.

2. Podcasts and Videos

  • Podcasts:

    • Exchanges at Goldman Sachs – Offers insights into market trends and strategies.
    • Motley Fool Money – General market commentary.
    • EconTalk – Covers economic and market-related topics.
    • WSJ Moneybeat – Focuses on earnings and market news.
  • YouTube Channels:

    • Aswath Damodaran’s channel – Deep dives into valuation and financial modeling.
    • Patrick Curtis’ WSO channel – Great for industry insights and interview prep.

3. Master Technical Skills

  • Financial Modeling:

    • Learn to build models like DCF, LBO, and 3-statement models. WSO offers excellent financial modeling courses to get you started.
    • Practice with templates available on WSO, such as stock pitch templates and financial modeling guides.
  • Valuation Techniques:

    • Understand multiples like P/E, EV/EBITDA, and how to apply them in different scenarios.
    • Study fixed income concepts like present value, interest rate dynamics, and quantitative risk analysis (Frank Fabozzi’s books are great for this).

4. Networking and Communication

  • Networking:

    • Schedule at least three conversations per week with professionals in ER or related fields. Use LinkedIn or alumni networks to connect.
    • Attend conferences or social events to meet industry professionals in a low-pressure environment.
  • Mock Interviews:

    • Practice behavioral and technical questions. WSO’s interview guides for ER are a goldmine for this.
    • Be prepared to discuss current events and their impact on specific sectors or companies.

5. Stay Curious and Ask Questions

  • Never stop asking questions about market environments, client outcomes, risk levels, and product structures. This will help you build confidence and avoid asking "stupid questions" later in your career.

6. Build a Stock Pitch

  • Create a stock pitch for a company you’re passionate about. This is a critical skill for ER interviews. Use WSO’s stock pitch templates to structure your analysis.

7. Additional Resources

  • Forums like WSO are invaluable for gathering insights and advice from professionals. Engage in discussions and learn from others’ experiences.

By following this roadmap, you’ll not only deepen your market knowledge but also position yourself as a strong candidate during networking calls and interviews. Good luck, and remember, preparation is your secret weapon!

Sources: Helpful Resources For Breaking Into Equity Research, You don't know anything— 5 things to do about it, How to improve your knowledge of markets?, I Want To Get Into Investing. How To Improve Your Knowledge Of Markets?, Q&A: 25 years Sales / Trading Experience

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

I spent 15 years on the buy-side, and was the PM on a 5-Star Morningstar rated fund.

You're asking what to read. Wrong question.  But I hear this all the time, so let me give you something more useful.

Reading more won't separate you. Everyone has read Buffett, Greenblatt, Lynch, Klarman. Table stakes.

What separates candidates is whether you can form a view the market doesn't have—and defend it.

Most pitches I hear sound like this: "Good company, strong management, trades at 12X." That's not a pitch.  That's a book report.

I once passed on a candidate from a target school because his pitch was a perfect 25-page deck with every ratio, KPI, and valuation metric you could imagine. Asked him what could break the thesis and he froze. Meanwhile I moved forward with a student from a no-name school who had a 2-page pitch on an auto parts supplier and could argue both sides for an hour. He'd visited dealerships and talked to mechanics. That's the difference.

The 10-K and earnings calls are just the starting point. The edge comes from primary research: talking to customers, competitors, former employees, suppliers. Understanding the industry from the inside, not just the filings. Knowing what question to ask that the market hasn't figured out yet.

PMs want to know: why is the market wrong, what changes and when, and what breaks your thesis. If you can't answer those without hesitation, you're not ready.

Pick one company. Go deeper than anyone else. Then pitch it like your money is on the line—because that's how it'll feel sitting across from a PM.

 

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