Lisaveta Ramotar discusses the value of the many different approaches one can take in stocks and investments, and one of those is equity research.
There are a lot of people who pursue careers in investments and stocks, with varying degrees of success. Investment banking is a particularly popular career path people may take in this, but some people find themselves preferring equity research. Equity research is perhaps less understood and appreciated by people, but it is nevertheless a very important field and should not be disregarded. Lisaveta Ramotar discusses the finer details of equity research and the benefits of pursuing it as a career.
Lisaveta Ramotar Explains Equity Research and the Associated Benefits of a Career in It
Equity researchers specialize in, as the name implies, research. Namely, they will take a group of stocks and do an analysis of them, providing their opinions and recommendations on investments for the various members of the firms that they work for, though they do offer these services to the general public if they choose to do so. Lisaveta Ramotar notes that they will make a research report for the relevant parties to peruse, and will label the companies they are covering with either Buy, Sell, or Hold.
Lisaveta Ramotar notes that the value of an equity researcher comes in the form of being able to better guide the investment bankers, with every person in each job at the firm providing a vital service, no matter how small. Equity researchers tend to gain expertise in specific fields, as they are expected to focus only on a small number of stocks, ranging from five to 15 usually. They also tend to focus on stocks based on geographical location and/or industry, thereby making their coverage even more specialized, Lisaveta Ramotar explains.
Certain people have certain talents and interests that make them the right fit for different jobs, Lisaveta Ramotar states. Someone who is interested in the competition and risk involved in stock investment may find investment banking interesting. If you find yourself interested in the industry but is a more analytical person and enjoys writing would find equity research more to their focus. As is the case with any career path, there will be a training process involved, Lisaveta Ramotar points out. So while much of your role going into this career is going to be similar to an equity researcher, you will usually go under the title of a research associate, learning the research process, learning to communicate effectively with other members of their team as well as their firm, and other things. You can even expect to get something back in compensation from successfully guiding investments depending on the company, Lisaveta Ramotar points out, so there can even be something nice in it for you if you are skilled at this.