Undergrad Interested in Value Investing Career - Where to start?
I'm currently reading through Benjamin Graham's The Intelligent Investor and I think I would like to pursue a career in AM that uses the investing guidelines he gives in the book. However, as a junior undergrad in the SF area, I am not sure what type of firm and position I should be looking for. For a summer internship in SF, should I look for equity research or Asset Management position? BBs or boutique firms? How can I specifically find firms with a value-oriented strategy? Thanks.
Your best bets are probably Wells Capital Management in San Francisco or Franklin-Templeton in San Mateo. They both have some deep-value products and more formal internship and recruitment programs.
A way to find managers you'd get along with is to do your own research on stocks that you like and then research who has a large stake in them. Larger companies (S&P 500) are owned by everyone, so pick smaller ones. Come up with a list of 5 or 10 stocks and look for the top 10 or 20 owners - see if anyone shows up a few times.
Sell-side equity research tends to have very little to do with Ben Graham type of stuff.
Thanks for the reply. Wouldn't value investors also have some resource for looking for AM firms? Also, by sell-side ER, you mean the ER divisions at investment banks right?
Ben Graham himself said that value investing is dead and that funds still using his approach would lose money. Get yourself something to read that's not out of date and some college education, THEN figure out what you want to do.
Proof-link please.
That's probably the most idiotic interpretation of what he said I've read to date haha.
Graham merely pointed out that the advent of technology has made it more difficult to find bargains because of lack of coverage e.g. it's rare to find good companies these days selling below net current assets/liquidation value. This point was stressed multiple times in Security Analysis. He also noted that as long as human beings are prone to mob psychology and herding mentalities that bargains will always present themselves due to market cyclicality.
Sirbankalot is talking about an interview in the 70's with Ben Graham. Ben Graham says that security analysis takes up a lot of time and it should be done using quantitative methods instead of doing in depth research. But he was very old then and didn't have much interest in security analysis.
I know Fisher has offices in SF, -only go there if desperate Do a quick am search on google for sf offices.
Greenlight Capital... BOOM.
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