Stock write up for ER final round interview !

How do you structure a stock idea write up if it needs to be only 1 page?
The stock write up must include:
brief investment thesis
risks
valuation of the stock idea

Please share some tips if you know how to do it. I would really appreciate it

 
Best Response

For a BB ER , it may be a combination of technical and fit, largely depending on who you interview with. I went through five interviews with the entire ladder and got a mix all the way through. Meeting with the Associates tends to be technical and cookie cutter interviews, the Analyst, more fit and 'how do you think/problem solve' questions.
Although, with direct experience, one of the guys laughed and said, well all my normal questions will be too easy, so give me a minute to come up with something to try and stump you. Even got the old 3:15 on a watch question too.

I would approach it by getting as much of the analysts research as I can, and then trying to emulate their style, up to and including phrasing and terminology. In that, if they talk about the Bull and Bear case for a stock, you talk about the bull and bear case, if they phrase something a certain way, now you do too. Small detail, use their formatting for Q1/12 or 1Q/12 or Q1/2012, little shit like that helps, makes you seem more like them, and folks typically like people like themselves.

For these purposes I'd include: -Two sentences on what the company is (depending of course on what company, shorter or longer).
-Your thesis is why the company is a good investment, maybe it's got under represented growth potential, great dividend stream, overly discounted cash flow etc. One of my favorites is the over sold stock, 'our investment thesis on XXX-O is that while the company remains intrinsicly valued at XXx/share based on (insert valuation methodolgy) the stock has decreased in price by XXX%, creating a low risk buying opportunity, with an estimated XX% projected return on investment. -I'd put the valuation methodology before risks -I like key catalysts, what's going to happen to make the stock move, and when, investors care about when, because if this stock won't move for nine months, maybe we don't buy it for eight, and go for some other trades in the meantime. -Risks: lots of guys cookie cutter this shit, even in industry, might be appropriate, might be worth explaining the downside of the catalysts here. for bonus points, and it might not work for your stock, but if you're doing a sum of the parts style valuation, you could put a price tag/share in each risk (for that matter, catalysts too).

IMPORTANT: You have one page, brevity is key, don't flood the page with facts, make points. Infact,make 3-5 points, that's all anyone can remember anyway.

 

Ullam nihil tempora sit adipisci voluptatem sed non. Sit et ea ipsam. Mollitia quas ab dolor quod sit.

Quibusdam omnis eos quis unde. Quisquam minima iste accusantium omnis expedita sed reprehenderit. Repellendus impedit asperiores unde minima voluptas quam. Ducimus impedit aliquid illum dolor.

Incidunt rem velit rerum quibusdam reprehenderit repudiandae. Et vel non repellat numquam adipisci. Voluptates dolorem dolor eum deserunt velit. Officia et ea nisi sint.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”