Overly cautious networking?

Hi guys

Before I begin I'll give a brief background of myself; non target grad entering the second year of his role in Credit Risk MO at BB. I want to make the move to Equity Research and have been sourcing a contact list over the past couple months to reach out to as well researching the role. Before I contact anyone for a sit down I want to be sure that I'm 100% prepared. I aim to purchase BIWS modelling prep next month and I've been reading research reports as I go along. Ideally I want to have written my first research report by the end of the year. I'm also in the midst of reading James Valentine. However I have two questions for the learned folks of WSO:

1. Do I need to know my stuff 100% before I begin reach out to have coffee etc with people?

2. What is the best source of information for learning about equity valuation? I've seen previous posts link to the McKinsey Valuation text and Damodarn Investment Valuation.

I intend to sit my CFA level 1 in june 2015, would like to have established some good links before then. Am I going about this all in the wrong way? Tell me your thoughts WSO!

Thanks as ever.

(Also please excuse any formatting issues I'm posting this from my phone)

Comments (12)

Aug 18, 2014 - 5:20am

No, start reaching out straight away. You're not going to be tested on things like modelling etc if talking to people about their backgrounds and that kind of thing.

Do all that you want to do in terms of prep alongside networking, start that asap.

Aug 18, 2014 - 11:34pm

Haha thanks.

I've heard Damodoran's valuation is great for an in-depth guide and I want to read it, but haven't checked it out yet. I think Rosenbaum's Investment Banking could also be good for you because IB and ER use similar valuation techniques.

Aug 19, 2014 - 1:01pm

Oscar - I am in a similar situation as you are. Preparing to reach out to alum/contacts, planning on purchasing BIWS, CFA level 1 in June, etc. Currently in a PWM role at a family owned shop. Non-target as well.

It would be cool to get to know each other and follow each other's progress. I'll shoot you a PM.

Best Response
Sep 9, 2014 - 9:36am


http://www.wallstreetoasis.com/forums/on-the-job-with-simple-as%E2%80%A6-my-research-process ... important fo your research process - list relevant of books

read the CFA Level 2 FRA, also read any Pwc and Deloitte comparison of IFRS and US GAAP, or summary of the IFRS

if you want a diverse list of books check this link http://www.wallstreetoasis.com/forums/book-recommendations-for-equity-research ... (not really relevant except for the Analysis list and the Valuation list ... also add the CFA insititute book called Valuation Techniques to the list)



webuser.bus.umich.edu/.../Equity_Research_Interview_Questions.doc ---- for the sell side

www.lbsimc.org/content/index_5_2145523323.pdf ---- for the buyside

for stock screening, valuation, modelling, etc

Sep 21, 2014 - 2:01pm

I would suggest skipping McKinsey for now since it takes a longer time than using BIWS's ER valuation material, once you are done with the BIWS material then feel free to use McKinsey

check as much as ER relevant material (this means buyside stuff as well) ... also buy the WSO interview prep/networking material and other relevant material for the job seeking process, even if it seems expensive it is just a one time investment.. but if you are in some other country then i guess the networking part wont be so useful

use the interview questions in the links provided (in my previous post) to prepare, as for the other things such as:-
1. knowing the FRA that will take time,
2. knowledge of the industry is a must this will also take time

so for now
1. keep in touch with the latest news, you should also try to find to find out which sectors the firm you are applying to specializes in (this caries greatly - usually a firm with more resources covers more) .. some people recommend that you should know the as much as you can about the sector in which the firm specializes, kind of shows how you can fit in readily
2. along with an understanding about how businesses run,
3. have a clear idea about how you would go on about building a model,
4. walking though financial statements ... http://www.wallstreetoasis.com/forums/finanical-modeling-financial-statement-analysis-interview-questions
5. A step by step process about how to pitch a stock, if you do not have a stock pitch right now no problem, be honest about your current stage of prep but at the same time also show clearly step by step (shows your dedication, discipline) how you would intend to prepare on your own while also being trained by the firm
6. knowing the basic categorization of valuation methods (3 or 4) it is more of a semantic issue but you should know which model is applicable for the type of a company you are analyzing ... this is where the McKinsey chapter 6 'Frameworks for Valuation' comes into play
7. Why the switch to ER? you have to have your own reason for this, if it is a trait related reason then have an example to demonstrate that trait or if it is a nature-of-work related reason then check the next point (for example is it the attention to detail or your keen interest driven by wanting to find out the value of businesses: as in why is it valued as much as it is, or how does all of this fit into the broad economic framework, or is your interest in stock screening, etc--- these are just examples)
8. Basically whatever you have done recently should relate to the ER work .. which is more than modelling btw (but don't try to relate something that doesn't ... in other words don't force the connection)


also check the link below for .. it has a model and reports from a student competition

also check this link Very Important as well --- it has an ER Test and an Equity Research Handbook (guidebook) though I do not know who has made that handbook nor can I say how credible it is

I should have posted all of this before ... and be patient during the job search, good luck

also check the posts about ER job tests on WSO such as writing a research note, modelling tests, case studies, etc

an extra stock pitch link http://www.forbes.com/2005/04/26/cx_sr_0426stockpicker.html

Sep 20, 2014 - 4:33pm

also forgot to mention Site visits, the questions for site visits, questions during conference calls ... check Call Transcripts to get an idea about what the questions are like


Oct 6, 2014 - 5:01pm

just in case you might need this as well

links for analysts' questions for management




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