Advice needed: How to get prepared for the career in ER / AM / HF
Hey guys, I am a college sophomore here (major in Economics and Finance), aspiring to join the AM / HF field upon graduation. If not then perhaps sell-side ER and exit to buy-side.
Currently, I am trading stocks on my own and try to understand market actions through reading financial news. However, the stock-trading on my personal account is more like base on my instinct on various macro news (I am in HK, so political action is viral nowadays), I am able to generate decent return but I don't think it is the way for me to learn about fundamental analysis (that's what lure me into the career, I found fundamental analysis and deep investigating companies and come up with investment decision very interesting.)
On the other hand, I have learnt a lot of basic theories in lessons and have been learning valuation methods (aka DCF) on my own. But then, I can't see how I can use those theories in real life, like CAPM, do people really take the E(r) in CAPM into consideration for whether they invest into a certain stock? As for Valuation, I am still learning and I would definite gonna try hand-on and see how it feels and works.
I understand that getting into buyside is very hard, so I would like to see if anyone have anymore advice for me on how I should better equip myself up for the career. If there is anyone is kind enough that is willing to have a chat, please do drop me a pm!
Really appreciate all of your inputs and help, WSO really helped me a lot.
Hey market-enthusiast, I'm the WSO Monkey Bot...do any of these help:
Fingers crossed that one of those helps you.
bump
Start with reading all the classic value investing books: intelligent investor, margin of safety, etc... honestly margin of safety will probably cover 90% of what you can learn through books (use google for the pdf). From there I’d read all the Berkshire letters, the right fund out there will froth over you if you can pull out some obscure buffet quote... if those two aren’t enough to land you an internship somewhere (not sure how it works in hk), then I’d just find an industry you like, learn everything there is to know about it and build models for as many companies in there as you can... very easy to sound smart with that in your back pocket
appreciate it man! will definitely go and read those books.
I would love to ask a few more questions tho, regarding to your advice. 1) What do you think is the most important in getting an internship or simply a position in the fund? Technicals? Modelling skills? or Investing Experience those? (not sure about if there will be a great difference among region, but i think that US/EU buyside is much more competitive than those in HK, heard people saying most fund's Asia team is just mere existence.)
2) For modelling work, I guess I can learn it from various ways. But there will be multiple models available like DCF / Dividend Discount / comparables / multiples and so on.... Is it just base on experience or personal preference to choose which model to adopt? I am still learning the basics so perhaps not that relevant to me right now, but just kinda curious about that.
Thanks for you help man!
I’d say passion for investing is #1. It sounds like you have that so really all you need to do is show it (this comes from being well read)
Depends on the fund but as long as you can put together a dcf and spread comps you should be fine
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