i currently have offers for both buy side and sell side…i have experience of neither…just corp. finance experience…i’m not very sure which one i should choose…any suggestions on which would be better?
What would the two jobs entail? Do they both offer exactly the same pay and conditions? You aren’t giving people much to work with here.
strong side! weak side! haha, just had a thought of “Remember the Titans”… I’d say sell side if you see yourself more as an extrovert and like the “marketing” aspect (assuming you are talking sales and not research), and buy side if you are more into the academic/theory and like doing the actual analysis and pulling of the trigger. I’d say there are positives and negatives with both, but most people prefer the buy side as you are making decisions and adding value. On the other hand, I’m sure a money sell-side guy who can be a rainmaker has no problem feeling like he adds value. Do you mind sharing how you transitioned from the corporate finance world? It’s what I’m currently trying to do ; )
Buyside if you are really into investing. Most guys I know on the sellside are using it as a platform to get on the buyside.
It’ll vary depending on what specific job you are going after but a lot of your personal happiness with your decision will rest on how much you enjoy client interaction. When I was on the sell side I got really sick of being the client’s whipping boy but I actually found that I missed interacting with clients and experiencing the variety that comes with working with many different characters on many different transactions. Again, depending on what you are doing, the buy side can be much more insular, although many people like the experience that comes with acting as a principal and having your work at risk.
I am willing to bet that you are lying. Nevertheless, choose sell-side if you prefer wasting your time talking to people and not challenging yourself.
I asked my friend Motley: Ever wonder what the difference is between these “buy-side” and “sell-side” analysts you occasionally hear about? Wonder no more. First, understand that much of the stock trading each day occurs between large institutions, such as pension funds and mutual funds. To determine which stocks to buy and which to sell, these institutions rely on the research and opinions of analysts. Analysts who work for brokerages, dispensing recommendations to clients, are sell-side analysts. Buy-side analysts don’t sell their research to outsiders. They work for mutual fund companies or other financial institutions and give recommendations internally, almost exclusively to portfolio managers and other money managers. It might make more sense if you imagine a retail situation, where you’re shopping for a new broom at Sweep City (ticker: BRUUM). The guy who works there, describing and recommending various brooms to you, would be the sell-side clerk. He’s out to drum up business and make sales. Meanwhile, a friend of yours who’s giving you advice on why you should or shouldn’t buy brooms at these prices would be on the buy side, aligned with you, the buyer.
EMHdenied Wrote: ------------------------------------------------------- > I am willing to bet that you are lying. > > Nevertheless, choose sell-side if you prefer > wasting your time talking to people and not > challenging yourself. Second that notion. If you can get a buyside gig there really wouldn’t be a debate. Sell-side = monkey (fecal throwing monkey to be specific)
fxguy1234 Wrote: ------------------------------------------------------- > strong side! weak side! > > haha, just had a thought of “Remember the > Titans”… > > I’d say sell side if you see yourself more as an > extrovert and like the “marketing” aspect > (assuming you are talking sales and not research), > and buy side if you are more into the > academic/theory and like doing the actual analysis > and pulling of the trigger. > > I’d say there are positives and negatives with > both, but most people prefer the buy side as you > are making decisions and adding value. On the > other hand, I’m sure a money sell-side guy who can > be a rainmaker has no problem feeling like he adds > value. > > Do you mind sharing how you transitioned from the > corporate finance world? It’s what I’m currently > trying to do ; ) Thanks a lot everyone for their helpful responses… fxguy1234, networking at the local CFA chapter helped me in the transition … i guess buy-side will suit my personality better as i’m not that into marketing and sales as i am in research and analysis
Are these both equity analyst roles? I’d side with the majority here and say that buyside is more satisfying intellectually and generally has better hours too. If you are good at it, SS can offer a lot of $$$ however. Probably more so in equity sales than in research. That really is more of a salesperson type position than research and analysis.
Generally, Sell-Side: better for the salesman, who likes placing harassing calls Buy-Side: better for someone who can handle receiving harassing calls, or doesn’t mind spending all day in an office creating spreadsheets and reading regulatory filings Kind of joking on both, but a little truth also
ValueAddict Wrote: ------------------------------------------------------- > EMHdenied Wrote: > -------------------------------------------------- > ----- > > Sell-side = monkey (fecal throwing monkey to be > specific) I’m not sure monkeys would stoop that low, too much self-resepct
Having worked on both sides here’s my two centavos Sell-Side Research: long hours, a lot of sales activity and getting close to Co’s Mgmt. Peaks of works during earnings seasons. You re probably looking into 10+ different models in the same sector and co’s which have to be extremely up-to-date. Except for deal periods, not a lot of stress. Buy-Side Research: Less hours, but certainly more stressful as your arse in on the line. You probably run 10+ models from different sectors.
why is there such a heavy emphasis on financial models? when was the last time you made a good investment because of a financial model. i think a lot of people use financial models to substitute for thinking. I dont’ think there is a single thing a model can do either then to keep track of some important numbers.
I’d say start out on the sell-side. (1) it pays better (2) you learn how to model the fundamentals far more comprehensively and (3) you make some good contacts. Yep, you might be treated like cr*p for the first couple of years… but so was i on the buyside! Then when you’re fed-up of the whole industry, move to the buyside, work some respectable hours and play more tennis. I dont buy the argument that buyside is more intellectually satisfying. IMO there’s more challenge in writing a 40 page report on a sector/stock and then arguing your corner with clients than putting the same investment case together, buying the stock and seeing if it goes up or not. I found my six years on the buyside so dull i wanted to poke my eyes out with a stick.