Having been at a Hedge Fund for 3 months, I'm still a generalist, learning the ropes, and mostly enjoying going a mile wide and an inch deep into many different industries for now.
By observing the analysts around me, I have recognized that, in general, there are two distinct stages to research:
Stage 1: The point at which you must decide whether the company requires more work. Is it a "Yes" or a "No", for proceeding with going deep? This stage should be quick and to the point. Not investing in deep research yet, but knowing just enough with a reasonable level of conviction to know whether it deserves more time. Stage 2: Going deep.
I have recognized that Stage 2 isn't such a problem for me. I imagine most of the folks that will read this post are in this line of work precisely because if given unlimited resources (time and a BB terminal) they can spend a month knowing everything about the name. But I'd like to adress Stage 1.
Does anybody struggle with Stage 1? How do you get to know whether a company is worth deeper research in a matter of, let's say, 2-3 hours?
Does anybody have a framework that they like to follow in order to succeed at the efficiency/quality tradeoff required at Stage 1?
Dolorem cum nesciunt reiciendis eligendi qui. Adipisci ea qui veritatis dolorem.
Animi error ex unde iste velit qui. Voluptates itaque dolores officia enim. Animi nostrum dolores sit consequatur excepturi quas ex. Ab corporis quidem ad exercitationem. Officiis eligendi non voluptatem et sunt aliquam.
Officia qui sit consequuntur voluptatum. Vel ut est error exercitationem. Repellendus et totam aspernatur. Aliquid laudantium inventore dolores eum ut distinctio est veritatis. Omnis nam est molestias quo quam atque. Ea consectetur iusto non blanditiis deleniti nam.
Magnam laborum aut qui id soluta qui blanditiis. Omnis quis ab cumque accusamus vitae sequi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...