4 recommended books for equity analysts

For many people who don’t start their careers at top sell/buy side firms in developed nations it is an uphill battle to reach international standards in their work. The only solution then it to leverage on other people’s experiences and try to learn from them. As they say, a book can have a person’s lifetime experience in it. Thus I would like to recommend four books for equity analysts which I consider to be very helpful.

1. Confessions of a Wall Street Analyst by Daniel and Jennifer Reingold

This was a the first book I read among the four I will list. It is a sort of biography of the years Daniel worked as a sell-side analyst. He lived through the madness in the telecom industry and is part of the ‘golden’ era of sell-side when analysts earned tens of millions of dollars in compensation. While the book highlights a lot of negatives of Wall Street, the key takeaways for me was clearly the lifestyle of an analyst. The amount of dedication required to get the insane financial rewards on Wall Street is no joke. There is definitely a lot for the new analyst in this book.

2. Best practices for Equity Research Analysts by James J. Valentine

This book by James Valentine had been a Godsend for me. For me, any book that gives me 3 unique insights useful for my life is a book worth reading. By that standard, James had created a masterpiece where every single page was full of practical, useful advice for analysts. This is definitely a must read and I would even encourage non-finance related people to give the book a shot.

3. The Investment Checklist by Michael Shern

On the buy side, analysts usually start in a junior role where they do simple modeling and valuation work for senior guys. However, as people rise up it becomes increasingly important to generate investment ideas and distinguish the good from the bad. The Investment Checklist by Michael provides exactly what the title says. It gives readers comprehensive checklists on analyzing and evaluation companies. The sequential nature of the book can be a bit boring, but overall the book is very useful.

4. The Manual of Ideas by John Mihaljevic

This is the only book in this list that I haven’t finished reading. However, based on the first two chapters I felt that the book definitely deserved its place in this list. What John does with this book is find the various ways investors find ideas. In one sense, this book is sort of similar to the Investment Checklist. However, the emphasis in this one is more on generating investing ideas while for Michael’s book it was analyzing companies (separating the good from the bad). John has interviewed some of top fund managers of the world and many of them are available online on youtube. He also has a podcasts of some of these interviews on itunes.

Here is a more extended list of books that I recommend for stock investing.

Asif Khan, CFA

Asif Khan is presently a Research Analyst (Financial Sector) for Exotix which is a frontier market focused investment bank. He has more than 6 years of work experience as equity analyst in both buy and sell side roles across Asian frontier markets. Asif is a CFA Charterholder and has a dual major in Finance & Economics from North South University.

3 thoughts on “4 recommended books for equity analysts

  1. Thanks for mentioning The Manual of Ideas is a book. I thought it was only a subscribed website for value investing ideas.

    Just a thought, is Confessions of a Wall Street Analyst anything like Liar’s Poker?

    1. The Manual of Ideas started as a subscription magazine. But John recently wrote a book as well borrowing heavily from the magazine.

      The confessions book probably has similarities with Liars Poker. But the story is told from the perspective of a sell side analyst instead of a bond salesperson.

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