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How much does a new SS ER analyst get these days?

One of my friends, he tells people he makes up numbers for a living. 

We’re gonna win so much, you may even get tired of winning. And you’ll say, 'Please, please. It’s too much winning. We can’t take it anymore. Mr. President, it’s too much.' And I’ll say, 'No, it isn’t!' We have to keep winning!

infinitybenzo wrote:

rawraw wrote:

infinitybenzo wrote:

robustening wrote:

Right.

The actual research process just doesn’t pan out for SS analysts. To properly research a piece of legislation or emerging trend that will drive CF of the companies they cover will require a lengthy research process that winds up reaching into areas they lack expertise. The end result is we punt. For instance, the house and senate tax bills are going to bear significant changes for our coverage names. We looked into re-valuing all of the names given different scenarios but quickly realized after talking to a few IR departments that nobody knows wtf is going on. Oh, sweet, an area we might be able to add clarity. So we start trying to figure out what the **** is going on by conducting interviews with tax lawyers. Very quickly we realize that the process will take months and we don’t even know what these bills will look like by then. So, we squash it. Publish a one page report with vague commentary and a half-assed sensitivity analysis attached to the usual 6 pages of SS compliance disclosures.

But I guess what the **** is the difference? The piece generated a ton of insight and we all spent hours on the phone that week. 

dude this was a great post.  Thanks mate. 

Moral of the story (which is something I have been saying) is that research is half assed and an art at best and total BS at worst…

Not all sell side is the same, though.  I respect Evercore ISI stuff, for example.  At least in my space, they always seem to be on point.

Well I was speaking of research overall…for both buyside and sellside.  It’s not really “research”  It is almost offensive to use “research” in equity research because this makes it sound very scientific, professional, complicated, robust, and revolutionary…..

Seems like you are a little upset about this. You are making a lot of assumptions and semantic distinctions that would be too burdensome for me to reply on at my phone. I think we agree, but you are having a very visceral response to the fact there may actually be that 10% in the market… 

rawraw wrote:

infinitybenzo wrote:

rawraw wrote:

infinitybenzo wrote:

robustening wrote:

Right.

The actual research process just doesn’t pan out for SS analysts. To properly research a piece of legislation or emerging trend that will drive CF of the companies they cover will require a lengthy research process that winds up reaching into areas they lack expertise. The end result is we punt. For instance, the house and senate tax bills are going to bear significant changes for our coverage names. We looked into re-valuing all of the names given different scenarios but quickly realized after talking to a few IR departments that nobody knows wtf is going on. Oh, sweet, an area we might be able to add clarity. So we start trying to figure out what the **** is going on by conducting interviews with tax lawyers. Very quickly we realize that the process will take months and we don’t even know what these bills will look like by then. So, we squash it. Publish a one page report with vague commentary and a half-assed sensitivity analysis attached to the usual 6 pages of SS compliance disclosures.

But I guess what the **** is the difference? The piece generated a ton of insight and we all spent hours on the phone that week. 

dude this was a great post.  Thanks mate. 

Moral of the story (which is something I have been saying) is that research is half assed and an art at best and total BS at worst…

Not all sell side is the same, though.  I respect Evercore ISI stuff, for example.  At least in my space, they always seem to be on point.

Well I was speaking of research overall…for both buyside and sellside.  It’s not really “research”  It is almost offensive to use “research” in equity research because this makes it sound very scientific, professional, complicated, robust, and revolutionary…..

Seems like you are a little upset about this. You are making a lot of assumptions and semantic distinctions that would be too burdensome for me to reply on at my phone. I think we agree, but you are having a very visceral response to the fact there may actually be that 10% in the market… 

yes, there are that 10% in the market. Because of that 10%, the 90% of us including myself make a living in this industry labeled as market “expert” or professional.

Be yourself. The world worships the original.

infinitybenzo’s view represents the skeptic’s take on the industry which may not be as appreciated by some people, but i also applaud the intellectual honesty. as someone that used to sit in the sell-side role and has seen all kinds of bad (or at least lazy) practices both there and also now on the buy-side, his posts strike a chord because there are some very valid elements to them. bottom line is, i think there is underperformance in the markets because both sell-siders and buy-siders try to take “shortcuts” which actually never ceases to amaze me because you can make so much money in this business by doing the real work. but, why bother if you can spend ~70% less effort and still participate in ~70% of the risk-adjusted upside anyway, and your downside risk of getting a call wrong is getting laid off and having to go find another job? it’s not like you have to pay back millions of dollars to the bank or your LP’s for making a lousy call….

I agree. I work in IR/Strategy for a S&P 500 firm in the TMT space. Out of the 25+ banks following us, I would say only 3 actually understand our business well and put time and effort in creating valuable reports… and guess what? You probably never heard of 2 out of the 3!! Independent ER shops do a much better job and deeper analysis than most BB ER in my sector… It really came as a surprise as I thought maybe one day I’ll try to jump ship to SS ER but most of them do not even factor in rising rates this year that’s just sad…

"You want a quote? Haven’t I written enough already???"

RIP