Equity Research Interview Tips
Equity Research Interview Tips
Below are several tips for your equity research interview:
Have a point of view. Whether you are discussing a current event or stock, always take a side. Don’t stand in the middle. If asked whether Apple stock is a good buying opportunity this year, have an answer. Clients rely on analysts to provide insights and opinions that guide their investment decisions. Your value lies in having a clear viewpoint and defending it.
Back everything up with numbers and data. Use quantitative language as much as possible. Rather than say “Apple will sell a lot of units this year”, be direct and say “Apple will sell 250M units this year”. Embrace quantitative words to provide precise and tangible information. It might feel unsettling because you don’t want to be wrong and so you want to hedge your bets. But again, it comes back to having a point of view. Investment decisions come down to exact figures and you can’t do that with vague language. The ability to navigate through numerical intricacies not only showcases your competence but also instills confidence in your assessments.
Showcase EQ and IQ: Successful analysts combine analytical rigor with effective communication and relationship-building skills. It involves not just poring over financial reports and market trends but also engaging with clients and corporate stakeholders. Reading a 10-K and dissecting every number is crucial, but equally important is the capacity to articulate complex financial insights to a diverse audience.
Technical skills. Excel and PowerPoint skills are a baseline requirement. But so is understanding the jargon that finance professionals use. You should be able to speak fluently about balance sheets and valuation models. Multiple expansion and discount rates should be in your daily vocabulary.
Have an investor mindset. You are not a market researcher nor a reporter. Your job is to use research and translate it to investment decisions. Every analysis undertaken should directly correlate with its impact on specific stocks. Supply chain is causing a delay in shipments? How will that impact Apple's earnings over the next quarter? What does that imply for their valuation?