Just said be prepared to pitch a stock that fits our mold. I was thinking of writing a report and preparing powerpoint slides, but is this to much or should I just memorize my pitch for when they ask for it?
Also, hard to know, but how nity grity in the detail do you think they get when asking questions post my pitch? From your experiences.
Check out the articles in my signature.
Make sure you understand the short side and risk very very well.
i would make a model for 3-4 stocks and have 3 likes and 3 dislikes and your conclusion, buy, sell or hold. Quick and easy. I think it is important to mention your models output and incorporate that into your likes and dislikes. Also know little bit about the company and not just numbers from 10k or your models…then you’re done. shake hands and you’re in. welcome to the team
I’d do due dilligence on the firm and get a sense for what they will look for in companies and mirror that. Sometimes interns give away a lot more than they should about the process on Linkedin descriptions, in order to impress future employers.
Totally depends on the style of the investment house. Is it exclusively bottom up (if so, relative value, DCF or are SOTP valuations used), what is the investment style (value, growth or GARP?). Suggest looking at previous market and portfolio commentaries written by the team the hiring manager works in. After this the path should be more obvious as to what they are looking for.
Then I suggest just following some of the stock pitch styles on the streetofwalls website. There’s no way you’ll need more detail than that for in an initial stock pitch.
Obviously the models used for that can vary in complexity a lot - I suggest learning the basic drivers of a stock, which you will find in the annual report for the company and its competitors, to make assumptions in the model you build. I also suggest just building a basic model like found on asimplemodel website, buyside models for entry positions really don’t need to be complicated (if they are even needed at all - some shops just take the sell-side’s models and stress or adjust their assumptions, which are often wrong due to various reasons).
While i’m on it, I highly recommend Common Stocks and Common Sense written by Edgar Wachenheim.
The CFA isn’t great when it comes to teaching how to use the material you’ve learnt in the real world (it does however give you the tools required, particularly if you are from a non-finance background). That book is a good starting point in terms of getting drivers and basic relative valuations right. As for reading financials and DCF assumptions, you can’t go wrong with any written by Damodaran (or his online course for that matter). Practice and experience does make a difference with this stuff.
Do not pitch a stock they own. Do not pitch a stock in the sector/industry they specialize in.
Thanks everyone, very helpful. Have any of you had a say in entry level BS hirings? If so, is there any particular trait/attribute that is high on the hierarchy that you’d look for? Like analytical thinker, communication skills, etc. (note: its a small firm).
Any no, no’s I should avoid?
Unfortunately they outlined the industry they wanted me to pitch the stock.
Did you fuck it up buffer?
I have a lot of say in the hiring process seeing as how I manage a portfolio now. The articles in my signature are highly valid in showing what must be highlighted in your pitch.
Im a bit confused as to why you are managing a portfolio and advising candidates. In my experience candidates either have it or they don’t and at your level why do you even care? You’re basically focused on the candidate with good stats and a bad ability to represent them, right?