Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts

Introduction
Chapter 1. Do You Have What It Takes to Be a Successful Analyst?
Part 1: Mastering Organization and Interpersonal Skills
Chapter 2. Take Control to Optimize the Coverage Universe
Chapter 3. Prioritize Time for the Most Valuable Activities
Chapter 4. Influence Others to Accumulate Insights and Get Heard
Chapter 5. Construct and Organize an Information Hub
Chapter 6. Buy-Side Only: Maximize Benefits of Sell-Side Relationships
Part 2: Generating Qualitative Insights
Chapter 7. Identify Factors That Impact a Sector's Valuation and Performance
Chapter 8. Identify and Monitor a Stock's Critical Factors
Chapter 9. Create Sustainable Proprietary Sources of Insight
Chapter 10. Get the Most from Interviewing for Insights
Part 3: Generating Quantitative Insights
Chapter 11. Detect Deceptive Numbers
Chapter 12. Leverage Statistics for Insights
Chapter 13. Conduct Surveys to Acquire Unique Insights
Chapter 14. Identify Yellow Flags through Forensic Accounting
Chapter 15. Identify the Relevant Microsoft Excel Features for Equity Research Analysts
Chapter 16. Creating the Best Spreadsheet Architecture for Financial Analysis
Chapter 17. Develop Company Financial Models to Elicit Insights
Chapter 18. Forecast Scenarios for the Most Important Critical Factors
Part 4: Mastering Practical Valuation and Stock-Picking Skills
Chapter 19. Understand the Benefits and Limitations of Common Valuation Methodologies
Chapter 20. Overcome Challenges to Creating Discerning Stock Calls
Chapter 21. Avoid Common Psychological Challenges That Impede Sound Investing
Chapter 22. Leverage Technical Analysis to Improve Fundamental Analysis
Part 5: Communicating Stock Ideas So Others Take Action
Chapter 23. Create Content That Has Value
Chapter 24. Identify the Optimal Communication Channels
Chapter 25. Convey the 7 Critical Elements of Stock Recommendations
Chapter 26. Special Considerations for the Most Important Delivery Channels
Part 6: Making Ethical Decisions
Chapter 27. Identify and Resolve Ethical Challenges Works Cited
Index

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. Ionly 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 ResearchAnalysts 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 amentor. 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 betweentheory 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 todevelop 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 havelittle 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 buyand 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 areasof 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.