Book Reviews, Value Investing

Best Practices For Equity Research Analysts: The Best-Seller For Equity Analysts

Best Practices For Equity Research Analysts: The Best-Seller for Equity Analysts to Master Their Profession by The Finance Professional’s Post

The most highly acclaimed and comprehensive learning tool available, Best Practices for Equity Research Analysts is an on-the-job reference filled with the practical knowledge and specific tasks buy-side and sell-side equity analysts need to claim their place among the most highly regarded in their industry.

Most equity research analysts learn their trade on the job, by apprenticing under a senior analyst or portfolio manager. However, these senior producers often have little time to train new analysts. Those who do have the time may not have developed research skills worth emulating (after all, over half of money managers underperform their benchmarks). Furthermore, in modern day equity research, analysts without a mentor don’t have time to learn on their own through trial and error because the stakes are too high.

Now in Best Practices for Equity Research Analysts, Author James Valentine, CFA, a former Morgan Stanley award-winning analyst and Associate Director of Research, explores the key concepts today’s competitive analysts need to know, providing practical career development advice for buy-side and sell-side research analysis. Conveniently organized for use as a learning tool and everyday on-the-job reference, the book covers the five key activities that generate sustainable alpha:

  1. Mastering organization and interpersonal skills
  2. Generating unique qualitative insights
  3. Generating quantitative insights
  4. Mastering valuation and stock-picking skills
  5. Communicating stock ideas so others take action

Clear, concise explanations with over 50 stand-alone Best Practice exhibits serve as road maps to becoming a top equity research analyst on the buy-side or sell-side. These strategies, intended to generate alpha, have been collected from leading professionals in the field.

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Best Practices for Equity Research Analysts – Description

Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts by James J. Valentine

A real-world guide to becoming a top-performing equity analyst

Praise for Best Practices for Equity Research Analysts:

“Jim Valentine has taken his decades of experience as a highly successful security analyst and written an effective and comprehensive guide to doing the job right. I only wish I had this book by my side throughout my career.” — Byron R. Wien, Vice Chairman, Blackstone Advisory Partners LP

“Given the fast pace and high-pressure nature of the markets, analysts don’t have the luxury to make mistakes. James J. Valentine’s Best Practices for Equity Research Analysts should be required reading for all new and experienced analysts, particularly those who were not lucky enough to be brought up in the business under a mentor. Valentine can be that mentor.” — Jami Rubin, Managing Director, Global Investment Research, Goldman Sachs

“Jim’s book is an excellent window into the world of securities research. Very few works cover the complete life cycle of an analyst and the necessary balance between theory and practice. This is one of them.” — Juan-Luis Perez, Global Director of Research, Morgan Stanley

“Valentine’s book doesn’t rehash the basics of finance but covers all the nonacademic topics in terms of how the analysts should manage their time, resources, data, and contacts in order to come up with the best stock picks. This book is required reading for beginning analysts and a must-read for all analysts who want to develop an edge.” — Carl Schweser, Founder of Schweser’s Study Program for the CFA Exam

Best Practices for Equity Research Analysts is by far the best written and most comprehensive book that I have read on how to become a top-notch analyst. I shouldn’t be surprised; it was written by one of the best analysts that Wall Street has ever seen. Every securities firm should require their analysts to read this book.” — Eli Salzmann, Portfolio Manager

Most equity research analysts learn their trade on the job by apprenticing under a senior analyst. However, equity analysts who work for senior producers often have little time or incentive to train new hires, and those who do have the time may not have research skills worth emulating.

Now, Best Practices for Equity Research Analysts offers promising equity research analysts a practical curriculum for mastering their profession. James J. Valentine, a former Morgan Stanley analyst, explains everything today’s competitive analyst needs to know, providing practical training materials for buy and sell-side research analysis in the United States and globally.

Conveniently organized for use as a learning tool and everyday reference on the job, Best Practices for Equity Research Analysts covers the five primary areas of the equity research analyst’s role:

  • Identifying and monitoring critical factors
  • Creating and updating financial forecasts
  • Deriving price targets or a range of targets
  • Making stock recommendations
  • Communicating stock ideas

Expanding upon material covered in undergraduate courses but written specifically to help you perform in the real world, this authoritative book gives you access to the wisdom and expertise of leading professionals in the field. You’ll learn best practices for setting up an information hub, influencing others, identifying the critical factors and information sources for better forecasting, creating a better set of financial forecast scenarios, improving valuation and stock-picking techniques, communicating your message effectively, making ethical decisions, and more.

Without Best Practices for Equity Research Analysts, you’re just treading water in the sink-or-swim world of the equity analyst.

Best Practices for Equity Research Analysts

Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts by James J. Valentine