As a retail investor, I wanted to get more insight into what a day in the life looks like in a professional setting. Here are my notes from my research.
- Combination of technical, fundamental, quantitative analysis to support a strategy with an objective to outperform the market
- Sourcing: responsible for building and maintaining a pipeline of opportunities
- Investment Analysis / Underwriting: Summary “one pager” of companies, analysis at various prices
- Portfolio company monitoring: a) type of transaction; b) size and life-cycle of the investment; c) management teams’ capabilities; and d) financial and operational performance
- 8am: Check for breaking news
- 8:30am: Morning meeting
- 8:45am: Check emails
- 9am: Early morning trading
- 10am: Discussion with clients
- 10:30am: Management meeting
- 12:30pm: Meeting with analyst
- 2pm: Research
- 4pm: Market Close
- 5pm: Conference call
5 Types of Investment Jobs:
- Investment Banking: Focus on raising capital for companies
- Investment Analyst: Analyze data, track trends, research companies and formulate opinions to help drive decisions for others
- Trader: Those who are actively buying and selling securities
- Financial Advisor: Client facing to help individuals invest and covers other things like retirement, mortgages. Helps clients stay invested.
- Portfolio Manager: Managers a set of securities or equities. Decision maker of an investment firm.
- Work about 7:30am to 7:30pm, earning season extends to 10pm
- Start from sell side to buy side (sell side is to analyze companies to promote for brokers, buy side is to buy good companies)
- Buy side is more performance driven
- Sell side is to analyze a set of companies, or a particular industry
- Equity research reports: Equity researchers conduct thorough analysis and research of companies and their share price to issue investment recommendations.
- Education of the opportunity of the industry, company and how to invest in it