Don’t hire analysts fresh out of college, says one analyst. Let them gain experience in their respective industry first.
“I would say it’s very important to have industry experience, because you only get insight by working in the industry,” Trip Chowdhry, the Managing Director of Equity Research at Global Equities Research, told StreetID. “When I say industry, I mean that your first job should not be a Wall Street job. The first job should be, for example, if you want to be a technology analyst, you should work for a technology company.”
Chowdhry warns that if your first job is on Wall Street, “you will just think like everybody else.”
“You’re not differentiated, and you will not get any insight,” he said. “Insight is only [acquired] by going hands-on. [You need] to see how everything works [firsthand].”
After that, you are free to enter Wall Street — preferably with five or six years of experience. “There is no value in repeating press releases,” Chowdhry says of the more menial tasks analysts may perform. “No value in taking the company’s management around and babysitting them. There is no value in listening to an earnings call and transcribing it. Why? Because that’s a commodity. A high school dropout can do that.”
“What can come to the table is your experience — your experience for five years, 10 years, in different roles,” Chowdhry continued. “You gain insights, you gain instincts, and that’s what the clients expect Wall Street to provide.”
Improving Job Market
Chowdhry thinks that the job outlook is improving, especially for firms that offer a “compelling value, a differentiating value, and is passionate to put customers and clients first.”
“Those companies will do very well,” he said.
Areas of Growth
With regard to the areas where Chowdhry anticipates growth, he said that he thinks research will always be needed. “Good research is always valued,” he said. “I think people who have been in the industry for many years should think of going to Wall Street because that is what Wall Street is missing.”
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