Day in the Life of an Equity Research Associate

I have an interview in a few days for a position as an equity research associate with and O&G investment bank in Texas. I have spent the last 2.5 years in investment banking, but out of the blue this firm reached out to me, and now here we are.

I am familiar with investment banking, but I am not quite sure what research guys do other than research. What are some key items that equity research associates look for in projects? What are some key financials used in determining things? I am really drawing a blank as to what (other than my modeling and due diligence skills) will translate over to this job.

Any advice? Thanks!

Comments (83)

 
5/17/17

Are you really a VP lateraling in as a senior associate and unsure of the responsibilities of a research associate?

I'm not poking fun at you, it is just that you may want to consider the strength of the group if they haven't explained what your transition will be like despite them reaching out to you.

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Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

 
5/17/17
<span itemprop=name>FinanceBrah</span>:

Are you really a VP lateraling in as a senior associate and unsure of the responsibilities of a research associate?

I'm not poking fun at you, it is just that you may want to consider the strength of the group if they haven't explained what your transition will be like despite them reaching out to you.

No offense taken. My firm is not a traditional investment bank, and to be honest, my title is just a title to impress people. We don't have a research group in our firm, so I am doing all of the day to day research.

 
5/17/17

If this is TPH like I think it is, you'll be doing a lot of the same valuation analysis that you're used to. Look at some of the companies they cover (won't let me post the link but it's under research on their website) and their b/s/h ratings and you'll get a pretty good idea of their process.

 
5/18/17

If I got a dollar every time i shook my head in disappointment at how wrong sell-side research analyst are, I'd be very very rich.

 
5/19/17

Sure, sell-side analysts can be wrong. Hell, I'm wrong all the time. Is predicting the future easy to you?

The sell side gets a lot of shit from the buy side. However, it's easy to throw shit from the sidelines when you're not putting yourself out there.

Is the buy side creating financial models and publishing them for the investing universe to see? No.
Is the buy side creating price targets and publishing them for the investing universe to see? No.
Is the buy side creating buy/hold/sell ratings and publishing them for the investing to see? No.

I imagine if you put yourself or the buy side guys into a sell side role that they would often times be wrong.

Additionally, creating research forecasts isn't the only thing the sell side does and for most buy side investors, isn't even what they find most valuable.

Just my two cents.

ask why, asshole

 
5/20/17

Well said.

Sell-side is an easy wife to beat but I wish that my co-workers had half the knowledge of the companies they own.

 
5/20/17

this is a complete nonsense and the biggest BS I've seen in a while. having been on both sides, I can tell that the most important thing is if you're putting the money where your mouth is, and it is much, much more important than making publicly available recommendations when you're not investing yourself.

 
5/22/17
<span itemprop=name>Mr. Skilling</span>:

Sure, sell-side analysts can be wrong. Hell, I'm wrong all the time. Is predicting the future easy to you?

The sell side gets a lot of shit from the buy side. However, it's easy to throw shit from the sidelines when you're not putting yourself out there.

Is the buy side creating financial models and publishing them for the investing universe to see? No.Is the buy side creating price targets and publishing them for the investing universe to see? No.Is the buy side creating buy/hold/sell ratings and publishing them for the investing to see? No.

I imagine if you put yourself or the buy side guys into a sell side role that they would often times be wrong.

Additionally, creating research forecasts isn't the only thing the sell side does and for most buy side investors, isn't even what they find most valuable.

Just my two cents.

Very well said. Been on both sides - neither is easy

 
5/20/17

You are one of those people that do not really grasp the value of sell side research. Let me help you. See, the sell side research is not there for you to download it from your Bloomberg terminal and make you rich after you read the header "B/S/H" and target price. It's there for you to quickly get an overview of the company and it's latest data, and add that to YOUR analysis. There, now you know.

You killed the Greece spread goes up, spread goes down, from Wall Street they all play like a freak, Goldman Sachs 'o beat.

 
5/20/17

yeah, sure. much value added when 20-30 guys are simply repeating the facts published by the company - which I've also seen myself on earnings release. thanks.

 
5/20/17

If you guys were so much better than the sell side wouldn't you be beating your benchmarks?

 
5/21/17

we are beating our benchmarks consistently. cant speak for others.

 
5/21/17

and just to make it clear - I am not claiming that sell-side research has no value whatsoever. There are guys who are willing to make out of consensus calls - and buy-side listens very closely to what they have to say to decide whether it is true or not. But those who are afraid to stick their necks out bring very little little value to both the firms they work for and the clients.

 
5/21/17

I don't know how it is with your investment process but I don't think the actual calls are the only thing of value sell-side research offers.

 
5/21/17

of course not - we're talking about industry connections as well, etc. - but the guy above made it look like the notes designed to present the company news are of particular value to the clients

 
5/22/17

Sell side research is just one data point out of many to input into a model or decision-making process. I have found the sell side quant researchers tend to be quite good. They expose me to data sets and vendors that I wouldn't have otherwise heard about. They develop proof of concept from new data sources/techniques/etc. which saves me time so I can jump into more sophisticated analysis right away. If an academic paper comes across their desk that is of interest to me or my firm, they will forward it along.

 
5/22/17
<span itemprop=name>pacificoast</span>:

yeah, sure. much value added when 20-30 guys are simply repeating the facts published by the company - which I've also seen myself on earnings release. thanks.

This certainly happens and we all know that corporate access and cues that a coverage analyst can pick up on from mgmt are many times more valuable than repeating guidance and updating a price target - but there is a reason the buyside will pay to see certain SS analysts.

I get that you are focusing in on the newsflow adding no value - makes sense. The other valuable thing about being well connected on the sell-side in this capacity is they get to talk to a whole slew of buyside guys and get their take on names; so if you speak to senior analysts/PMs at Citadel, Third Point etc. you will get access to what everyone is thinking - something a buyside analyst on his own doesn't get. That info when made anonymous and relayed can really help people understand what are catalysts and expectations for a name.

Lastly - there is a big misconception here that somehow buyside L/S guys are all target BSDs with high IQs and many SS guys are bums, FWIW I've met many weak senior analysts at the most prestigious buyside firms that come from semi-targets or lower. I couldn't believe the lack of knowledge some had of their names. With many teams competing against each other at the same shops, it was also comical to see the weak arguments they would present to go Long one shitty name vs Short another shitty name. Thankfully - I don't have to deal with that anymore.

 
5/22/17

good comment. thanks for the input

 
5/31/17
MonacoMonkey:

If I got a dollar every time i shook my head in disappointment at how wrong sell-side research analyst are, I'd be very very rich.

If I got a dollar for how many times i see hedge fund analysts flushed out of their pods or tiger cubs...well i'd have 20-30 more dollars a year. Buy side arrogance while consistently underperforming and churning is my favorite part of wall street.

 
5/20/17

Interested as well. What's the day-to-day like at the junior level? During earnings season, I'm assuming there's a lot of updating models, price targets, blasting out earnings recaps, etc. What about outside of earnings season? Also, at the junior level, what is the level of interaction with buy-side investors? with management of the companies you cover?

 
5/22/17

At the junior level responsibilities can vary by team.

For me earnings consists of obviously reading the release, listening to the earnings call and taking notes and then helping my team with anything they need to get the note out in an efficient manner. This can involve writing portions to searching releases for specific data points/numbers to making calculations of ratios or different numbers for the analyst to use in the note. Then most importantly, checking every single number and statement that is in the note. Once the calls for the day are over and we have gotten the notes out, any downtime is spent updating company models, industry spreadsheets, and marketing packs.

Outside of earnings can involve a wider variety of tasks. Most teams have a weekly newsletter type product that the junior will play a major role in keeping up with. Notes outside of earnings also tend to involve much deeper dives into the industry or specific companies so you can be sent on massive data collection projects. Updating and maintaining spreadsheets for new data pieces is a constant part of the job. Also any type of M&A activity, or meaningful industry news will typically result in the team doing a note.

As far as interaction with the buyside, once you have passed your series exams and have a year or two under your belt, you will get tons of client exposure. Your analyst can only talk to one person at a time, so clients will talk to you when your analyst is busy or when they have some smaller questions. Also you will be constantly emailing clients models, marketing packs, event invites etc. Also most analysts host plenty of corporate access events, and you will get to meet management teams as well as buyside clients.

As has been mentioned before, the sell side doesn't add much value on Buy/Hold/Sell ratings. Sell side adds value by providing the buyside color that they don't have the time or resources to get. Maybe passing on that incremental nugget they squeezed out of management the other day at lunch or giving investors a feel for market sentiment gathered from spending the whole day on the phone. Most of the time, the buyside simply doesn't have time to dig as deep or they simply want to talk to someone about the little known intricacies of a company's financials or business.

 
5/31/17

Out of curiosity - I'm looking at as similar jump. I've been on buy-side a couple years at a smaller fund and recently contacted to move to a bulge bracket bank in ER a bit more senior (similar comp). I follow a rather narrow set of stocks and the coverage would be similar to my investment role now. Thoughts? I'm planning to stick it out for 2 years and do an MBA thereafter (will be 6 years out of undergrad at that point).

 
6/29/17

i have two general questions as someone who will be looking for full-time employment opportunities at an investment bank but a little unsure of the roles being described:
1) what exactly is the difference between buy-side research and sell-side research?
2) is this research on stocks for companies that the bank should invest in? is any of this research for potential IPO or acquisitions? or is the role of an equity research associate limited to looking at stocks and pitching them to institutional investors?

 
6/29/17

also to what degree can you pick what industries/ companies you want to research?

Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

 
 
6/29/17

what do u think kreayshawn's new album will sound like

 
6/29/17
swagon:

what do u think kreayshawn's new album will sound like

juicy j and kreayshawn, thats a smokin marathon

take a shot and take a shot

its a drankin marathon

 
6/29/17

oops double post

beat-wise do u think she will keep it west coast stylin or go grittier

 
6/29/17

I have no ideas Swagon. More of a K-Pop Fan (i.e. Big Bang, 2NE1, Super Junior).

"I am the hero of the story. I don't need to be saved."

 
  • BeenPrepping
  •  6/29/17

What do you tell women when they ask what you do?

How do they react?

How much is your suit?

 
6/29/17
BeenPrepping:

What do you tell women when they ask what you do?

How do they react?

How much is your suit?

Q: What do you tell women when they ask what you do?
A: I blow up building for a living.
Never never talk about work. "I am an investment banker."

Q: How do they react?
A: I always tell them, "would you like to play a game? Whoever ask about 1) where you work? 2) where you live? or 3) where you went to school? buy a drink first."

Q: How much is your suit?
A: Average $500 (Original $1,000).
The max I spent was $800 (Original $1,400).

"I am the hero of the story. I don't need to be saved."

 
6/29/17

Thanks for taking questions. By the way man, the general quality of the posts I've seen you write here is awesome; props. Anyway, some questions below. Some are weird but I'm curious as to your opinion...if it's too many questions, just pick a couple lol, I won't be offended.

  1. Top general fashion tips? What (not too expensive) suits do you like? Best way to mix & match so it doesn't look like you're always wearing the same thing?
  2. How do you produce the final report PDF? Word / Ppt / Excel usage during this process? What are your favorite formatting tips / shortcuts for any of these applications? (interested in ppt formatting since I haven't had much exposure to it) Basically, how do you make those reports look nice?
  3. I'm interning at a HF now where the analysts often talk to ER and related people. What's it like from your point of view if someone from the buy side wants to talk with you about a company you cover? If I want to talk to an ER analyst is there any etiquette I need to know? (dunno, perhaps you're not allowed to answer certain questions) What should I do to make sure we both perform our job functions well?
 
6/29/17
Nabooru:

Thanks for taking questions. By the way man, the general quality of the posts I've seen you write here is awesome; props. Anyway, some questions below. Some are weird but I'm curious as to your opinion...if it's too many questions, just pick a couple lol, I won't be offended.

  1. Top general fashion tips? What (not too expensive) suits do you like? Best way to mix & match so it doesn't look like you're always wearing the same thing?
  2. How do you produce the final report PDF? Word / Ppt / Excel usage during this process? What are your favorite formatting tips / shortcuts for any of these applications? (interested in ppt formatting since I haven't had much exposure to it) Basically, how do you make those reports look nice?
  3. I'm interning at a HF now where the analysts often talk to ER and related people. What's it like from your point of view if someone from the buy side wants to talk with you about a company you cover? If I want to talk to an ER analyst is there any etiquette I need to know? (dunno, perhaps you're not allowed to answer certain questions) What should I do to make sure we both perform our job functions well?
  • http://www.youtube.com/watch?v=x878pLoNuBU. There are a lot of tutorials on this. Or you can go to my site: http://thesummereffects.com/.Click "GQ Rules" Under Power Words. I have a list of clips. I usually buy Charles Trywhitt and make sure it gets fitted. The max I will spend is $500 on a suit.
  • We use BlueMatrix at work. It is a publishing application that will automatically post our reports on various vendors: FactSet, Bloomberg, and etc. The company has a template, designed by BlueMatrix. We only use Word document and upload it to the system. BlueMatrix does most of the work.
  • I think from ER perspective, HF is the client so you should ask whatever you need to get the job done. Most of my friends from HF do not trust reports from ER. HF usually ask for our models and they make their own adjustments on top of them. HF just talk to ER to get a good idea of how the management is thinking. At some level, ER has pretty good access to the management. That's probably the most value added.
  • "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    School?
    GPA?
    Internships?
    Sector?
    How many suits?
    How many hours of sleep per night?

    The difference between successful people and others is largely a habit - a controlled habit of doing every task better, faster and more efficiently.

     
    6/29/17
    mhurricane:

    School?
    GPA?
    Internships?
    Sector?
    How many suits?
    How many hours of sleep per night?

    School? Undergraduate = Private Non Target, Graduate = Public Non Target
    GPA? Undergraduate = 3.02, Graduate = 3.14
    Internships? 2
    Sector? Boutique = Healthcare IBD, Boutique 2 = TMT IBD
    How many suits? 2 suits, one navy blue, one dark strip
    How many hours of sleep per night? I usually get back home by 8pm. I am at the office by 7am.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    talked to a lot er guys but always want to get the perspective from the other side:

    do you hate it when i email about an industry data and say " please respond asap"?

    jk. mad respect for you guys. if not for you my life would be more miserable

     
    6/29/17
    Ricqles:

    talked to a lot er guys but always want to get the perspective from the other side:

    do you hate it when i email about an industry data and say " please respond asap"?

    jk. mad respect for you guys. if not for you my life would be more miserable

    I let my MD handles the clients. I only forwards info when my MD asks me to.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    are you at a boutique ER shop? BB?

     
    6/29/17
    kmzz:

    are you at a boutique ER shop? BB?

    I previously worked at 3 different BBs for MO/BO roles.
    I have also interned at 2 different Boutiques for IBD roles.
    Currently at a Boutique.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    heard BB ER pay is mediocore (i guess compared to other FO roles)
    and boutique pay is very low
    truth?

    do you want to end up at a HF covering the sector you currently cover?

     
    6/29/17
    kmzz:

    heard BB ER pay is mediocore (i guess compared to other FO roles)
    and boutique pay is very low
    truth?

    do you want to end up at a HF covering the sector you currently cover?

    My firm pays the same as other BBs for ER.
    We also paid out bonus for the last three years even when some BBs stopped paying.
    I have a few things in mind including starting my own firm in Asia.
    Personally, I don't think my personality is suitable for ER > HF route.
    I am looking to transition into IBD > PE route.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17
    Human:
    kmzz:

    heard BB ER pay is mediocore (i guess compared to other FO roles)
    and boutique pay is very low
    truth?

    do you want to end up at a HF covering the sector you currently cover?

    My firm pays the same as other BBs for ER.
    We also paid out bonus for the last three years even when some BBs stopped paying.
    I have a few things in mind including starting my own firm in Asia.
    Personally, I don't think my personality is suitable for ER > HF route.
    I am looking to transition into IBD > PE route.

    Quick questions: Does your boutique sponsor you? Or did you get it from the BBs and green card already?

     
    6/29/17
    blueslord2910:
    Human:
    kmzz:

    heard BB ER pay is mediocore (i guess compared to other FO roles)
    and boutique pay is very low
    truth?

    do you want to end up at a HF covering the sector you currently cover?

    My firm pays the same as other BBs for ER.
    We also paid out bonus for the last three years even when some BBs stopped paying.
    I have a few things in mind including starting my own firm in Asia.
    Personally, I don't think my personality is suitable for ER > HF route.
    I am looking to transition into IBD > PE route.

    Quick questions: Does your boutique sponsor you? Or did you get it from the BBs and green card already?

    While I was in BBs, I worked under CPT and OPT.
    Yes, my current job sponsored my H1B visa.
    The official policy is they will sponsor my green-card down the road.
    I have been with this firm for 1 year and 3 months.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17
    Human:
    blueslord2910:
    Human:
    kmzz:

    heard BB ER pay is mediocore (i guess compared to other FO roles)
    and boutique pay is very low
    truth?

    do you want to end up at a HF covering the sector you currently cover?

    My firm pays the same as other BBs for ER.
    We also paid out bonus for the last three years even when some BBs stopped paying.
    I have a few things in mind including starting my own firm in Asia.
    Personally, I don't think my personality is suitable for ER > HF route.
    I am looking to transition into IBD > PE route.

    Quick questions: Does your boutique sponsor you? Or did you get it from the BBs and green card already?

    While I was in BBs, I worked under CPT and OPT.
    Yes, my current job sponsored my H1B visa.
    The official policy is they will sponsor my green-card down the road.
    I have been with this firm for 1 year and 3 months.

    I did not know that Boutique will sponsor or that is what I heard. Thanks!

     
    6/29/17

    Copied from other thread excuse me for that :

    Like to have a view on my profile :

    I am currently working as a Geophysict in O & G service firm, working towards my CFA level 1
    Here is my profile
    Age:28 yo

    In terms of Finance:
    1. Preparing for CFA level1
    2. Taking Wall Street Prep premium course...(will sit for certification in two months )

    Technical
    1. Master in Geophysics, Bachelor in Engineering Geology (Civil Minor)

    Couple of publications : 6
    Book chapters : 2
    President of student bodies like EAGE, SEG
    work ex :
    2 year work ex in Gas Hydrate and Mining sector in Asia
    1 year Work ex in Geophysics in Calgary, Canada (8 months + 4 month ( current employer)
    Summer : Total oil, france
    current compensation 80k$ + bonus

    Looking to get in : ER or M & A

    Some questions :
    1. Wondering abt packages I should expect if I am doing transition from technical to finance. (Just curious if i expect a cut from current compensation)

    1. I can easily switch to operater company by year end, so should i gain more exp on operater side before moving to finance.
    2. I want to shift to finance soon, will it reflect bad on resume if i do it before spending year.with current employer ( Worked 8 months for small company. presently 4 months with global company )
    3. Skills I need to add other than CFA level 1 and wall street premium course.

    5.If i am meeting analyst for a coffee what to do or not to do ?

    6.I saw a star analyst number on some website, any tips for doing cold calling ?

    1. There is Job opening for Associate in one of the Banks, It ask for following requirement , what are your views on it.. I am not sure if siitting for CFA level 1 will qualify as enrollment and I just started wall street prep course so i dont think if it falls under strong modelong skills

    Qualifications:
    A degree in business
    A degree in engineering, geology or geophysics
    Chartered Accountant (CA), Certified Management Accountant (CMA), or Certified General Accountant (CGA) designations would be an asset
    Enrollment in the Chartered Financial Analyst (CFA) program would be an asset
    Work experience in the oil & gas sector or in a finance role would be an asset (co-op experience will be considered)
    Skills:

    Strong accounting, financial modeling, technical and writing skills
    Excellent spreadsheeting and graphing skills. Macro modelling skills preferred.
    Ability to perform under pressure and meet time-sensitive deadlines, sometimes for extended periods of time
    Ability to multi-task and manage several on-going projects at the same time
    Self-motivated, team-oriented, hardworking and detail-oriented
    Major Activities:
    Create and maintain company financial models and industry databases
    Generate tables and graphs
    Assist in generating research publications and morning comments, including writing
    Conduct primary research from industry and financial sources
    Prepare marketing presentations using PowerPoin

    Thanks

     
    6/29/17
    energyanalyst:

    Some questions :
    1. Wondering abt packages I should expect if I am doing transition from technical to finance. (Just curious if i expect a cut from current compensation)

    1. I can easily switch to operater company by year end, so should i gain more exp on operater side before moving to finance.
    2. I want to shift to finance soon, will it reflect bad on resume if i do it before spending year.with current employer ( Worked 8 months for small company. presently 4 months with global company )
    3. Skills I need to add other than CFA level 1 and wall street premium course.

    5.If i am meeting analyst for a coffee what to do or not to do ?

    6.I saw a star analyst number on some website, any tips for doing cold calling ?

    1. There is Job opening for Associate in one of the Banks, It ask for following requirement , what are your views on it.. I am not sure if siitting for CFA level 1 will qualify as enrollment and I just started wall street prep course so i dont think if it falls under strong modelong skills
  • Wondering abt packages I should expect if I am doing transition from technical to finance. (Just curious if i expect a cut from current compensation)
    People around me with similar work experience and seniority, makes $80,000 to $120,000 base and bonus is 50% to 100%.
  • I can easily switch to operater company by year end, so should i gain more exp on operater side before moving to finance.
    I don't really know what this question is.
  • I want to shift to finance soon, will it reflect bad on resume if i do it before spending year.with current employer ( Worked 8 months for small company. presently 4 months with global company )
    As long as you can defend yourself in job-hopping, it should be fine.
  • Skills I need to add other than CFA level 1 and wall street premium course.
    Understanding the sector that the analyst cover. Able to put together an initiation report all by yourself. Being able to put together a quarterly earning report based on earning press release. I think most people care about being able to do real (applicable) works compared to CFA and Investment Banking prep courses.
  • 5.If i am meeting analyst for a coffee what to do or not to do ?
    Not to do:
    Ask for a job
    Demonstrating your technical abilities
    Trying to outsmart him
    Asking what he does on a daily basis

    To Do:
    Ask him "how can I best prepare myself to work at a group similar to yours?"
    Focusing on what you can do for him (save him time, get things done on time)
    Read his reports and ask him very specific questions
    Give him investment ideas

    6.I saw a star analyst number on some website, any tips for doing cold calling ?
    Yes, call him. Most likely you will have a better chance talking to his Associate.

    1. There is Job opening for Associate in one of the Banks, It ask for following requirement , what are your views on it.. I am not sure if siitting for CFA level 1 will qualify as enrollment and I just started wall street prep course so i dont think if it falls under strong modelong skills
      What are the requirements?

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17
    Human:
    energyanalyst:

    Some questions :
    1. Wondering abt packages I should expect if I am doing transition from technical to finance. (Just curious if i expect a cut from current compensation)

    1. I can easily switch to operater company by year end, so should i gain more exp on operater side before moving to finance.
    2. I want to shift to finance soon, will it reflect bad on resume if i do it before spending year.with current employer ( Worked 8 months for small company. presently 4 months with global company )
    3. Skills I need to add other than CFA level 1 and wall street premium course.

    5.If i am meeting analyst for a coffee what to do or not to do ?

    6.I saw a star analyst number on some website, any tips for doing cold calling ?

    1. There is Job opening for Associate in one of the Banks, It ask for following requirement , what are your views on it.. I am not sure if siitting for CFA level 1 will qualify as enrollment and I just started wall street prep course so i dont think if it falls under strong modelong skills
  • Wondering abt packages I should expect if I am doing transition from technical to finance. (Just curious if i expect a cut from current compensation)
    People around me with similar work experience and seniority, makes $80,000 to $120,000 base and bonus is 50% to 100%.
  • I can easily switch to operater company by year end, so should i gain more exp on operater side before moving to finance.
    I don't really know what this question is.
  • I want to shift to finance soon, will it reflect bad on resume if i do it before spending year.with current employer ( Worked 8 months for small company. presently 4 months with global company )
    As long as you can defend yourself in job-hopping, it should be fine.
  • Skills I need to add other than CFA level 1 and wall street premium course.
    Understanding the sector that the analyst cover. Able to put together an initiation report all by yourself. Being able to put together a quarterly earning report based on earning press release. I think most people care about being able to do real (applicable) works compared to CFA and Investment Banking prep courses.
  • 5.If i am meeting analyst for a coffee what to do or not to do ?
    Not to do:
    Ask for a job
    Demonstrating your technical abilities
    Trying to outsmart him
    Asking what he does on a daily basis

    To Do:
    Ask him "how can I best prepare myself to work at a group similar to yours?"
    Focusing on what you can do for him (save him time, get things done on time)
    Read his reports and ask him very specific questions
    Give him investment ideas

    6.I saw a star analyst number on some website, any tips for doing cold calling ?
    Yes, call him. Most likely you will have a better chance talking to his Associate.

    1. There is Job opening for Associate in one of the Banks, It ask for following requirement , what are your views on it.. I am not sure if siitting for CFA level 1 will qualify as enrollment and I just started wall street prep course so i dont think if it falls under strong modelong skills
      What are the requirements?

    Position : Oil and gas Research associate

    Requirements

    Qualifications:
    A degree in business
    A degree in engineering, geology or geophysics
    Chartered Accountant (CA), Certified Management Accountant (CMA), or Certified General Accountant (CGA) designations would be an asset
    Enrollment in the Chartered Financial Analyst (CFA) program would be an asset
    Work experience in the oil & gas sector or in a finance role would be an asset (co-op experience will be considered)
    Skills:

    Strong accounting, financial modeling, technical and writing skills
    Excellent spreadsheeting and graphing skills. Macro modelling skills preferred.
    Ability to perform under pressure and meet time-sensitive deadlines, sometimes for extended periods of time
    Ability to multi-task and manage several on-going projects at the same time
    Self-motivated, team-oriented, hardworking and detail-oriented
    Major Activities:
    Create and maintain company financial models and industry databases
    Generate tables and graphs
    Assist in generating research publications and morning comments, including writing
    Conduct primary research from industry and financial sources
    Prepare marketing presentations using PowerPoin

    Thanks

     
    • BeenPrepping
    •  6/29/17

    whats your favorite place to hangout in nyc?

     
    6/29/17

    Important skills to be successful in ER?
    Is there a future in ER? because I heard the industry is dying
    Do ER staff work in cubicles?
    What are ER hours on the west coast?
    What do you do day to day and how much time is spent on the phone?

     
    6/29/17
    DotCarter:

    Important skills to be successful in ER?
    Is there a future in ER? because I heard the industry is dying
    Do ER staff work in cubicles?
    What are ER hours on the west coast?
    What do you do day to day and how much time is spent on the phone?

    Important skills to be successful in ER?
    Having an opinion on everything.
    The ability to explain things in a very simple language.
    Interest in the market.

    Is there a future in ER? because I heard the industry is dying
    More people are saying that sell-side research is dying and in the future people are going to for pure-research firms like: Buckingham Research Group and CLSA. There is just too much conflict of interest. Telsey Group used to a very good Retail Research shop but now they are getting into banking business as well so.

    Do ER staff work in cubicles?
    Some of other Associates in my firm have their own offices. Mostly, yes.

    What are ER hours on the west coast?
    I am in East Coast.

    What do you do day to day and how much time is spent on the phone?
    Morning call. In my firm, the MD deals with the clients.
    Associates only get on earnings calls and do some client supports.
    Most of the time Associates works on modeling, and putting together reports.
    All those grunt works. Yes.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    After tomorrow, I'll ask you a lot :D

     
    6/29/17

    I think you already have the relevant work experience. Should definitely take a "Oil & Gas" modeling class, like this one: http://www.wallstreetprep.com/programs/self_study/... else on this job description, I wouldn't worry much about it.

    At this point, compared to another candidate with previous ER experience, you just need to prove yourself that you can do the job (you already worked in the industry), you can write well and you can build model.

    The most effective way to prove that is to at least put together a short initiation report (5-10 pages) on one of the companies that this Analyst is covering. This probably shows him that you are on par with candidate with previous ER experience.

    In term of applying, I strongly discourage applying online. I would suggest doing a search like this: "Urban Outfitter's Analyst Coverage", http://investor.urbn.com/phoenix.zhtml?c=115825&p=... big firms have an IR site on their website that shows all the analysts currently covering along with their contact info.

    I would highly suggest reaching out to the analysts directly for getting a job. If the analysts were busy, try talking to the associates under them. Some of them will be willing to pass your resume along.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17
    Human:

    I think you already have the relevant work experience. Should definitely take a "Oil & Gas" modeling class, like this one: http://www.wallstreetprep.com/programs/self_study/... else on this job description, I wouldn't worry much about it.

    At this point, compared to another candidate with previous ER experience, you just need to prove yourself that you can do the job (you already worked in the industry), you can write well and you can build model.

    The most effective way to prove that is to at least put together a short initiation report (5-10 pages) on one of the companies that this Analyst is covering. This probably shows him that you are on par with candidate with previous ER experience.

    In term of applying, I strongly discourage applying online. I would suggest doing a search like this: "Urban Outfitter's Analyst Coverage", http://investor.urbn.com/phoenix.zhtml?c=115825&p=... big firms have an IR site on their website that shows all the analysts currently covering along with their contact info.

    I would highly suggest reaching out to the analysts directly for getting a job. If the analysts were busy, try talking to the associates under them. Some of them will be willing to pass your resume along.

    I have access to the ER report from BBs, but wonder if I could still send email and network with them this way? Thanks!

     
    6/29/17
    blueslord2910:
    Human:

    I think you already have the relevant work experience. Should definitely take a "Oil & Gas" modeling class, like this one: http://www.wallstreetprep.com/programs/self_study/... else on this job description, I wouldn't worry much about it.

    At this point, compared to another candidate with previous ER experience, you just need to prove yourself that you can do the job (you already worked in the industry), you can write well and you can build model.

    The most effective way to prove that is to at least put together a short initiation report (5-10 pages) on one of the companies that this Analyst is covering. This probably shows him that you are on par with candidate with previous ER experience.

    In term of applying, I strongly discourage applying online. I would suggest doing a search like this: "Urban Outfitter's Analyst Coverage", http://investor.urbn.com/phoenix.zhtml?c=115825&p=... big firms have an IR site on their website that shows all the analysts currently covering along with their contact info.

    I would highly suggest reaching out to the analysts directly for getting a job. If the analysts were busy, try talking to the associates under them. Some of them will be willing to pass your resume along.

    I have access to the ER report from BBs, but wonder if I could still send email and network with them this way? Thanks!

    Just email the Analyst on the report that you would like to speak to him to understand about his sector. Call him. If this failed, call the corporate office number, tell her operator to transfer to the Research department (mention the analyst name), once a Secretary at the department answers the call, ask her to transfer to the associate who work directly the Analyst.

    You can quickly figure out how the analyst is like and who is his associate, if you dialed in for the conference call for the companies that the analyst cover.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17
    1. How much human/group interaction do you have? There's no "let's sit around at a table and churn out these reports", is there? There's that common saying that ER analysts mainly work independently; truth?
    Human:

    I have no ideas Swagon. More of a K-Pop Fan (i.e. Big Bang, 2NE1, Super Junior).

    1. What is your opinion on K-pop groups who are trying to push into the American markets? Successful? Worth it? Shouldn't they spend more time really getting a stronghold on their East Asian markets first? For that matter, what do you think of K-pop groups making inroads in Japan? K-pop vs. J-pop?

    /former East Asian Studies major

    Currently: clinical psychologist (in training)
    Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

     
    6/29/17
    chicandtoughness:

    1. How much human/group interaction do you have? There's no "let's sit around at a table and churn out these reports", is there? There's that common saying that ER analysts mainly work independently; truth?

    Human:

    I have no ideas Swagon. More of a K-Pop Fan (i.e. Big Bang, 2NE1, Super Junior).

    1. What is your opinion on K-pop groups who are trying to push into the American markets? Successful? Worth it? Shouldn't they spend more time really getting a stronghold on their East Asian markets first? For that matter, what do you think of K-pop groups making inroads in Japan? K-pop vs. J-pop?

    /former East Asian Studies major

    1. How much human/group interaction do you have? There's no "let's sit around at a table and churn out these reports", is there? There's that common saying that ER analysts mainly work independently; truth?

    We do talk to management after the earnings calls and for regular updates on company progress. We also provide some sort of support to IBD for both deal and non-deal roadshows. We also take time to go on industry related conferences to meet up with managements to build relationship and also to take in new companies to place under our coverage.
    Compared to IBD, ER people work in a much more independent manner. At least at my firm, Research Associate deals directly with MD so you don't have the typical hierarchy (Analyst-Associate-VP-Director-MD) like in banking. And as Research Associate (till Associate level in ER), you do most of the grunt work, as you move to VP level in ER, you start covering your own companies, and MD spends most of the time talking to the clients (buy side).

    Human:

    I have no ideas Swagon. More of a K-Pop Fan (i.e. Big Bang, 2NE1, Super Junior).

    1. What is your opinion on K-pop groups who are trying to push into the American markets? Successful? Worth it? Shouldn't they spend more time really getting a stronghold on their East Asian markets first? For that matter, what do you think of K-pop groups making inroads in Japan? K-pop vs. J-pop?

    K-Pop is already dominated in the Asian countries, almost all of them. Some K-pop grounds are more popular in Japan than the local J-pop groups. I do see that bands (Rain, Lim Jeong Hee, Wonder Girls, 2AM, 2PM, Miss A, JOO, San E, JJ Project.), under JYP Entertainment, already have significant presence in the Asian-American communities. It is just a matter of time. Park Jin Young is a very smart manger and also a very good business man.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17
    Human:

    K-Pop is already dominated in the Asian countries, almost all of them. Some K-pop grounds are more popular in Japan than the local J-pop groups. I do see that bands (Rain, Lim Jeong Hee, Wonder Girls, 2AM, 2PM, Miss A, JOO, San E, JJ Project.), under JYP Entertainment, already have significant presence in the Asian-American communities. It is just a matter of time. Park Jin Young is a very smart manger and also a very good business man.

    I wouldn't necessarily say that. K-pop groups have a strong hold in China and Japan, but local groups will still always have the support of the country; I find it very hard to believe that someday K-pop will be dominating the Oricon charts. Not with abnormalties like AKB48 and old-time favourites like Arashi and Johnny's still alive and kicking. I do respect Korean artists, however, for putting in some dedicating time to learning how to sing in foreign tongues -- Wonder Girls' Chinese wasn't too bad, and groups like Rania and 2NE1 have extremely good English, etc. If only J-pop groups would try to assimilate to local culture more, they could have a better hold on the international markets as well, but I think the distinctly -Japanese- (and slightly backward) ways of the J-pop industry are also what gives it some of its charm; that is, it's special simply because they don't wish to expand that fast or focus on globalization. A matter of industry differences, I suppose.

    Currently: clinical psychologist (in training)
    Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

     
    6/29/17

    I grew up listening to H.O.T, One Time, Shinhwa in High School. :-)
    Favorite song: Tasha, Yoon Mirae's Memories
    Korean version

    English version

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17
    Human:

    I grew up listening to H.O.T, One Time, Shinhwa in High School. :-)

    Ahh, some of the good oldies. I miss the "older" sound of 90s/early 00s K-pop. Baby V.O.X, SeeYa, Fin.K.L. Groups like Wonder Girls and all these newer clones have nothing on the K-pop artists who can actually -sing-.

    For something more ER-related: for someone interested in transitioning to buy-side ER after b-school, is it better to transition first to sell-side (IB or ER or whatever) after b-school and then move to buy-side, or just directly try to move into buy-side ER? I won't have any IB/ER experience prior to b-school (consulting).

    Currently: clinical psychologist (in training)
    Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

     
    6/29/17
    chicandtoughness:
    Human:

    I grew up listening to H.O.T, One Time, Shinhwa in High School. :-)

    Ahh, some of the good oldies. I miss the "older" sound of 90s/early 00s K-pop. Baby V.O.X, SeeYa, Fin.K.L. Groups like Wonder Girls and all these newer clones have nothing on the K-pop artists who can actually -sing-.

    For something more ER-related: for someone interested in transitioning to buy-side ER after b-school, is it better to transition first to sell-side (IB or ER or whatever) after b-school and then move to buy-side, or just directly try to move into buy-side ER? I won't have any IB/ER experience prior to b-school (consulting).

    I did have a friend who went to a hedge fund AUM 300MM-500MM with a scientist background. He interned there for six months before they offered him a full time job. So this transition is possible.

    However, most of my peers do sell side ER before moving to HF. Think in term of MS Retail Coverage (sellside) > SAC Retail Coverage (buyside). Most people put in 2-3 years in sell side ER before moving to HF. There are just too many qualified competition gunning for that HF job.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    What was your answer to: Why ER/IB?

    The difference between successful people and others is largely a habit - a controlled habit of doing every task better, faster and more efficiently.

     
    6/29/17
    mhurricane:

    What was your answer to: Why ER/IB?

    ER
    1. I like to learning about a sector.
    2. I am good and familiar with financial modeling and putting together industry reports.
    3. I am interested in investing.
    At ER why not IBD: more interested in the market and investing.
    Not that much interested in deal experience.

    IBD
    1. I like to learning about a sector.
    2. I am good and familiar with financial modeling and putting together industry reports.
    3. I want to involved in transaction and have deal experience.
    At IBD why not ER: more interested in putting together a deal from beginning to the end.
    More interested in advising clients (Corporate Finance) than investing in the market.

    I am just giving you a short-to-the-point answer.
    Most interviewers just want to hear that.
    Of course you can expand your thought process on those points.
    As you can see both IBD and ER requires the same things, (point 1 and 2).
    The only difference is point 3.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    http://www.youtube.com/watch?v=fhseD2tRLUY
    I don't know how to embed, but it is Mr. Taxi by SNSD. I love them :D

     
    6/29/17

    What path did you take to where you are now? (Degree, Jobs)
    What path will you take from now? (Future Jobs)
    Is your compensation comparable to IB?
    Lifestyle? (Hours?)

    Thanks legend

    "All things are difficult before they are easy"
    - Thomas Fuller

     
    6/29/17
    burnsy:

    What path did you take to where you are now? (Degree, Jobs)
    What path will you take from now? (Future Jobs)
    Is your compensation comparable to IB?
    Lifestyle? (Hours?)

    Thanks legend

    What path did you take to where you are now? (Degree, Jobs)
    BS Finance, MS Accounting
    BO/MO roles at 3BBs, IBD Internship at 2 Boutique, Consulting at Startup

    What path will you take from now? (Future Jobs)
    IBD > B School > PE
    Entrepreneurship (Family Business)

    Is your compensation comparable to IB?
    Yes

    Lifestyle? (Hours?)
    7am to 7pm (regular)
    7am to 10pm (earnings season)

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    Excellent post, thank you!

    1. I work in a non ER group at my firm and would like to network into ER. Is it better to start with my firm, or should I start with other companies and make all my mistakes there before approaching people where I work?
    2. Is an MBA recommended?
    3. Is it possible to lateral over to ER by working part time? My hours will be pretty good for a while and I'd like to make the best use of it.
    4. What are the growth sectors? Where is the most opportunity, both number of jobs and potential for growth at the job...

    Get busy living

     
    6/29/17
    UFOinsider:

    Excellent post, thank you!

    1. I work in a non ER group at my firm and would like to network into ER. Is it better to start with my firm, or should I start with other companies and make all my mistakes there before approaching people where I work?
    2. Is an MBA recommended?
    3. Is it possible to lateral over to ER by working part time? My hours will be pretty good for a while and I'd like to make the best use of it.
    4. What are the growth sectors? Where is the most opportunity, both number of jobs and potential for growth at the job...

    Bro, you should have asked me this during the first half of my birthday party. :-)

    1. I work in a non ER group at my firm and would like to network into ER. Is it better to start with my firm, or should I start with other companies and make all my mistakes there before approaching people where I work?
      Personally, I would just reach out to other people outside the firm.
      Internally, people might take it differently and might view you unfavorably for wanting to switch roles.
    2. Is an MBA recommended?
      For ER, yes. Take a time off.
      For people gunning up for Associate in IBD or PE roles, no. Get those positions (at analyst level) first before you go to B-school. Because once you are in B-School and started applying, remember that your competition already have those necessary work experience and you will be at a considerable disadvantage.
    3. Is it possible to lateral over to ER by working part time? My hours will be pretty good for a while and I'd like to make the best use of it.
      During your down-time make sample work + cold call + network
    4. What are the growth sectors? Where is the most opportunity, both number of jobs and potential for growth at the job...
      Anything that require constant market updates, obscure knowledge, significant industry contacts
      Think: TMT (mainly Tech), Healthcare, FIG, Energy (Oil & Gas)
      Not: Consumer, Industrials

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    How to prepare for ER interview

     
    6/29/17
    energyanalyst:

    How to prepare for ER interview

    1. WSO Interview Guide
    2. Look up the companies that the analyst covers
    3. Prepare to pitch at least 1 long and 1 short idea (focus on structured thinking and reasoning)
    4. Focus on personal story (pitch)
    5. Review technical questions

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17
    Human:
    energyanalyst:

    How to prepare for ER interview

    1. WSO Interview Guide
    2. Look up the companies that the analyst covers
    3. Prepare to pitch at least 1 long and 1 short idea (focus on structured thinking and reasoning)
    4. Focus on personal story (pitch)
    5. Review technical questions

    On number 3: what do you really mean? We do not need any ratio and intrinsic value here?

     
    6/29/17

    Thanks...Last one, What is range of compensation for ER Associate for oil and gas......Heard Oil and gas get paid higher than other field

     
    6/29/17
    energyanalyst:

    Thanks...Last one, What is range of compensation for ER Associate for oil and gas......Heard Oil and gas get paid higher than other field

    If you were interested, please PM your info. I can refer you to a friend at SIG who covers Oil and Gas as an Equity Research Associate.

    "I am the hero of the story. I don't need to be saved."

     
    6/29/17

    How do you feel about the fact that 2/3 of k-pop is now in engrish.
    I grew up listening to H.O.T. and S.E.S. where engrish was an accent to the song rather than the norm :(.

    You should listen to korean hip-hop like the Quiett, B-Free, Swings, etc.

    On a side note, guessing you're Korean? Any plans to return to the homeland any time soon? Are you knowledgeable about buy-side recruiting in Korea?

     
     
    6/29/17

    what bank is this? are you interviewing for an associate or assistant position? some sr. analysts are more willing to hand their models over to junior folks than others, and as someone just joining the team, you can't expect to be able to do the modeling right out of the gates since you may not know much about their coverage space. however, you definitely don't want to just be sifting through news and stuff all the time...granted that's part of the job, but you want to make sure you have good experience with the models. if you're that concerned whether it's a coverage position or just an administrative role, why don't you just ask the company?

    anyway, she could be telling you the truth, or just trying to temper your expectations a bit....who really knows. however, if you've been interviewing with the BB bank "for a while" as you say, chances are you are not their top candidate and they are speaking with people that are more qualified for the job than you are. take that however you want, but it's something to consider if you're trying to assess how strong a candidate they think you are.

     
    6/29/17

    The bank is CS. A while is perhaps in accurate but thus far I've had an initial phone screening, then went in and met the MD and the other analyst, then I had a phone interview with an HR guy, then I interviewed with the two other associates on the team and the MD again. I say awhile because the in-person interviews need to be fit in before work so it's involved a few trips to their office to get it all fit in.

    And that's true, the MD said they'd gotten close to extending an offer to another individual, but that person ended up going with a different job. But the MD says she likes me and is on the fence.

    As far as I know the job is a research associate position. The way I stumbled into the opportunity is unusual (applied for a position on doostang, told I'd be a better fit for this position); but I was told initially that it was for a a research associate gig.

    Don't get me wrong, the MD added that after I'd proved myself on doing whatever grunt work I'd get additional responsibility. But she definitely seemed to deliberately avoid holding herself to anything. She's extremely cautious because she recognizes that she's a brand and all it takes is one person to mess everything up (i.e. someone she's just onboarded and doesn't know that well yet).

    I'm just not sure whether what she's offering me is par for the course--where, as opposed to IB, you have to prove yourself before you can even begin getting into the modeling/report writing.

     
    6/29/17

    Thats the ER business model, an MD or senior analyst in research is basically runs their own company. Additionally, everything the person does is out in the open, so everything sees your successes and failures.

    Starting off, you are gonna do nothing more than monitor news flow and update models. Quite honestly, there really is not too much else to do in research. You don't really build models that often, an established research team usually have models built already and use the same models and just update them. The only times you actually build a new model is if you are initiating coverage or are in a new space (like a new sector coverage or in small/mid caps).

    As you get more senior in the team, then you get added responsibility. Added responsibility means actually drafting notes (earnings notes, company updates, etc.), drafting new research reports, attending industry events, and then if you build a good enough reputation, talking to clients and management. Since in research you are expected to have a strong, detailed knowledge of your space, your companies, and basically everything that happens in it, the team will need to get you caught up on things, and generally make a pretty strong investment in your development to make you a productive member of their team.

     
    6/29/17

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