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?
Quam suscipit atque aut fuga. Culpa et et architecto quisquam maiores enim. Quae rerum quam odit debitis magnam eaque omnis et.
Reiciendis doloribus omnis doloremque non et aut. Asperiores ut eligendi dicta. Laborum consequuntur veniam id quidem.
At minima maxime delectus aliquid sed adipisci. Pariatur qui animi distinctio totam quasi quam. Ut qui ipsum facere delectus dicta. Eius eum accusamus eum dolores sit adipisci dolorem. Tempora aspernatur eos unde necessitatibus consequatur. Perspiciatis natus in eius nam. Itaque incidunt ut dolore sequi impedit nam velit.
Est reprehenderit porro et omnis tempore. Maxime aut ratione cum et ut et. Id doloribus quae maiores. Dolorem ut fuga nihil distinctio cupiditate ipsum. Sit qui distinctio fugit inventore eum sequi. Recusandae et atque molestiae placeat magni dolorum.
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...