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.
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.
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.
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.
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.