Being an equity analyst is an interesting job. On the one hand, you need a lot of technical skills in modelling the financials of a company and making forecasts for earnings and other factors. And then there is the human side to it. The numbers aren’t always telling the whole story, so you have to be able to ask the right questions from the CEO, the CFO, and other people. And if that isn’t hard enough, you also have to get them to answer these questions and not evade them.
My problem was always believing what the managers said, they are after all paid to be positive. There are few thanks for sell recommendations. Companies which don't do that well can also see good returns, and vice versa, for reasons that are wholly unpredictable, let alone creative accounting, ramps etc. Plus a rising tide lifts/falling tide strands all boats etc
My problem was always believing what the managers said, they are after all paid to be positive. There are few thanks for sell recommendations. Companies which don't do that well can also see good returns, and vice versa, for reasons that are wholly unpredictable, let alone creative accounting, ramps etc. Plus a rising tide lifts/falling tide strands all boats etc