Feeling lost in front of the extent of the knowledge necessary to be a good Equity Analyst
Hi,
I'm equity analyst at one of the top MM HF since 1 year (my first job).
As the title indicates, I have difficulties being confident in my abilities to be a good analyst.
My boss seems happy about my work but when I read WSO topics talking about use of alternatives data, advanced investment process, DCF, I feel like an impostor.
Actually, all I do is reading annual report, doing earnings estimates and listening to conf calls.
I need help
Thanks
If it makes you feel better after two years of MF PE I still can’t make a model from scratch from a 10K since I just used my firm’s template for two years
It's having a process and the bottom line that matters. You are developing yours and according to your boss your doing a good job (experience-adjusted). Take it positively and keep on improving.
There are people dealing with alt data, doing extensive models and being very knowledgeable on certain sectors, which nonetheless suck at investing.
There is no single formula to make it right. My boss (became billionaire running his HF) has never opened a spreadsheet, at least not in the past 3 years I worked for him (and it's not spending countless hours on modelling what he wants from me).
Give yourself some time. Sometimes reading annual reports and arriving at earnings estimates (accurately) are more than enough. Focus on unit economics, revenue drivers and pattern recognition. Spend some time occasionally to build that full DCF model dry run if that's bothering you
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