I'm a beginner research analyst and I'm trying to figure out which sector I should start with for valuation. I used to work on property in my previous job, but I only stayed there for a few months so suffice it to say I did not get enough background on the industry and would like to start fresh.
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Right now, i’d probably suggest going with Transportation/Aviation. Lots of turmoil so good stuff to learn from
I think it would be interesting to watch considering that it's one of the sectors taking the biggest hit now, but wouldn't the volatility make it hard for a beginner? Especially with the movement in oil prices now
Transport (particularly Aviation) have a lot of nuances that will definitely make it a challenge. So yes, you would learn a ton especially given the current environment, but it under no circumstance would it be considered one of the easiest sectors to learn. I'm in the same boat at the other poster, retail/consumer is probably the most straight forward/easiest for a noob to comprehend out of the gate.
Retail or consumer company that you understand business/product at an easy level is what I would recommend to start off
will look into that, thank you!
Retail and consumer staples are probably the easiest to understand. their supply chain are straightforward enough that you could understand them in 2 days.
Avoid capex intensive industries such as Auto, Mining, O&G because usually they are very complex and regulations-senstive.
makes sense - anything with heavy capex and regulatory risk could be hard to value. i decided to start on the retail sector for now. i'm looking into a pure play hypermarket stock that i think would be easy to study.
still in undergrad but doing FIG investments for school investment firm and RX IB. rational behind it: if you learn FIG you can still understand 80-90% of other sectors, but if you do the other sectors, Goodluck understanding FIG. as for RX, the complexity of capital structure and the huge role that debt plays out and its intricacies makes it super compelling to learn in. long run I still wanna do vanilla PE but I think both experiences will help tremendously given 1) tremendous technical prowess 2) every other industry will be “easier” to understand. When you’re a principal/PM and 40, you don’t wanna be trying to learn fig but instead maybe learning retail in a week or two and go from there.
i almost got into IB actually, but I wasn't ready (for personal reasons and given my lack of experience at the time). i'd probably try again eventually, but right now, i'm working independently (again, for personal reasons) so this is mostly for practice for when I go back into the industry.
What? Every reply here is so wrong.
Technology or biotechnology. Everything else is dead or dying.
but wouldn't that be hard for a beginner?
might not be important, but I do want to add that I am from a developing country so we don't really have a lot of tech companies to choose from (there are a few penny stocks), and with my resources, it will be difficult to value and invest in international markets.
it's an interesting sector, though, and i feel like i'd enjoy valuing tech firms once i get the hang of things.
Yeah, biotechs would be very difficult for a beginner if you're trying to learn valuation. Only benefits would be the balance sheets are usually pretty simple.
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