How to get into EQUITY RESEARCH | How to Apply / Skills & Academics Required | How to Use Linkedin

Summary

The video script discusses the intricacies of equity research and investment banking, emphasizing the importance of understanding financial modeling and market analysis. It delves into the process of evaluating companies, including the use of historical data and forecasting techniques, and highlights the significance of internships and networking in the field. The speaker also touches on the role of research reports in investment decisions and offers insights into the practical aspects of the industry, such as the impact of competitive advantages and market trends on stock performance.

Takeaways

• 📈 Equity research is a key entry-level role in investment banking, similar to fixed income.
• 💼 Equity research involves creating detailed research reports for companies to inform investment decisions.
• 🏦 The main difference between sell-side and buy-side roles: sell-side creates and sells research reports, while buy-side manages portfolios and invests money.
• 🔍 Research reports include recommendations like buy, hold, or sell, based on detailed company analysis.
• 🧑‍💼 Sell-side firms, such as Motilal Oswal and Ambit Capital, produce research reports available on their websites.
• 💰 Buy-side entities, such as mutual funds, use these reports internally and do not disclose them publicly.
• 📊 Key skills for equity research include understanding historical data, forecasting, and interpreting financial ratios.
• 📚 Practical knowledge of different sectors (e.g., banking, retail) is crucial for accurate forecasting and analysis.
• 🔍 Thorough analysis involves reading annual reports, investor presentations, press releases, and participating in conference calls.
• 👥 Networking through LinkedIn and other professional platforms can enhance job opportunities and industry connections.

Q & A

What is the primary topic of discussion in the provided script?

The primary topic of discussion in the script is equity research, specifically focusing on how to get into equity research and the various aspects involved in it.

What does the speaker mention about the starting level for investment banking, fixed income, and equity research?

The speaker mentions that for investment banking, fixed income, and equity research, the starting level is similar, with a focus on understanding the specificities of equity research.

What is the difference between 'buy-side' and 'sell-side' as discussed in the script?

The 'buy-side' refers to investment firms that buy securities for their own account, while the 'sell-side' refers to brokers and dealers who sell securities to the buy-side. The speaker explains that research reports are typically sold on the sell-side, and decisions are made based on these reports on the buy-side.

What is the role of a mutual fund in the context of the script?

In the context of the script, a mutual fund pools money from various investors and is managed by a portfolio manager who makes investment decisions on behalf of the investors.

What does the speaker mean by '22 side' in the script?

The '22 side' refers to the research reports that are sold by the sell-side to the buy-side. The number '22' is used as a reference to the type of research reports provided by the sell-side.

What is the importance of understanding the company's competitive advantage when doing equity research?

Understanding the company's competitive advantage is crucial in equity research as it helps in evaluating the company's position in the market and its potential for growth and profitability.

What is the role of an analyst in equity research as per the script?

The role of an analyst in equity research involves creating research reports, making recommendations based on in-depth analysis, and providing insights to investors for making informed decisions.

What are some of the skills required for someone looking to get into equity research according to the script?

Some of the skills required for equity research include financial modeling, understanding market trends, interpreting annual reports, and having a good grasp of the English language for report writing.

How does the speaker describe the process of creating a research report in equity research?

The speaker describes the process of creating a research report as involving in-depth analysis of a company, including its financials, market position, and competitive landscape, followed by making recommendations and presenting findings in a report.

What advice does the speaker give for someone looking to apply for a job in equity research?

The speaker advises to have a strong understanding of financial markets, to create a compelling LinkedIn profile, to be consistent and active in posting unique content, and to network with senior members in the industry.

What is the significance of conference calls and investor presentations in the context of equity research mentioned in the script?

Conference calls and investor presentations are significant as they provide insights into the company's strategy, performance, and future plans. They offer an opportunity for analysts to ask questions and gain a deeper understanding of the company.