Frank Aburto ⋅ Jersey City, NJ U.S. Army, Captain ⋅ 6 years served

I would have a solid stock pitch ready to go on a smaller company in an industry group you are interested in. Know the company down cold and be able to talk about trends in the industry and how the company is reacting definitely shows commitment and that you are ahead of the curve. You might want to reach out to people on the forum that have a CFA already and can help you out with better pointers. If you're in Texas right now, there is probably a huge market for people in the Energy & Power sector, which covers oil producers etc. if you would like to stay in the area, otherwise I know NYC houses many other research shops. Networking is going to be your best bet on finding people in the industry who came from the military and live in your area. Check the Veterans on Wall St website, they might have good leads for you as well.

Micah Robinson ⋅ Coppell, TX U.S. Army National Guard, Sergeant ⋅ 8 years served

From what I have researched it seems that IBs will hire BBAs for associate positions on the research side. Would either one of you agree that there are opportunities for undergrads in research? I plan on pursuing my MBA at some point but for now my plan is to get as much experience as I can in order to get into the most competitive MBA program I can. Thomas- you mention that I should develop a philosophy. I have found that my interest usually guides me towards the Graham/Dodd/Buffet approach to value investing. Do research firms want their candidates to have a philosophy they normally adhere to?

Regarding my interest in the CPA, I think I have concluded that I will hold off for now. The CFA is my top priority and despite that fact that I won't begin studying for level II until December, I don't want to overload myself with more classes/homework as I fear I might become burnt out by December. Please let me know if my decision seems logical or not.

Thanks for your responses gentlemen. I am very grateful for your willingness to share your thoughts and opinions.

Tom Cal, CFA ⋅ San Francisco, CA Army Veteran, Investment Manager ⋅ 25 years experience

Frank: Great answers.

Micah: The CFA is more common among "equity analysts". A CPA is unusual among equity analysts, and might distinguish you, especially if you develop particular expertise in the areas of financial statement analysis, "quality of earnings", etc.

A few ideas:
1. request an ACP mentor that is involved in equity research

2. understand the difference between the "sell-side" and the buy-side:
a. sell-side: you work for a firm or "department" within a firm that "sells" research to the "buy-side"; your department does not typically manage money)
e.g. investment banks that issue buy, sell, hold recommendations. These firms typically ,make money trading on behalf of clients, and under wiring security offerings on behalf of corporate clients.

b. buy-side: your department directly manages money, and you "buy" research from the sell-side. These firms make money charging fees to clients whose money they invest.

Note that these terms have nothing to do with shorting or going long stocks, but with who is being and selling the research. Many firms have departments that are buy-side and others that are sell-side.

http://www.vault.com/articles/The-buy-side-vs.-sell-side-15434841.html

3. join and attend CFA Society events
e.g. http://www.cfadfw.org/

4. develop an "investment philosophy". As you study for the CFA, take just about everything you read with skepticism. e.g. MPT, beta as a proxy for risk, standard deviation as a proxy for risk, etc. I recall Warren Buffet saying something like": It's a good thing they don't take back Nobel prizes".

5. Healthy skepticism is a great tool. Take little as "given". Understand that just about everyone in the investment industry is very understandably acting in their self-interest. Sometimes legally, sometimes ethically, sometimes not. Proceed from there.

6. consider an MBA

Frank Aburto ⋅ Jersey City, NJ U.S. Army, Captain ⋅ 6 years served

Here is a link with the search competed...a few good leads if they are still open. Given that you already work in the industry this shouldn't be a major transition for you. Easy to search, edit by city, and find items on this engine.

https://www.nationalresourcedirectory.gov/jobSearch/list?q=equity+research&moc=&x=0&y=0&location=&includeNearbyCities=on

Micah Robinson ⋅ Coppell, TX U.S. Army National Guard, Sergeant ⋅ 8 years served

Thanks for your input Frank. What suggestions do you have for someone interested in research? I am participating in the CFA program (crossing my fingers for Tuesday's results), reading investment text and periodicals and networking with people in the industry. Is there anything you might do yourself if you were in my position?

Frank Aburto ⋅ Jersey City, NJ U.S. Army, Captain ⋅ 6 years served

I have a few colleagues that went into equity research in NYC and I even explored the option for a while. From what I see, everyone focused on studying for the CFA exams rather than a CPA. The CPA can't hurt since it will give you a solid credential reflecting your mastery of accounting and financial statement analysis, but I think that most companies wanted to see you working towards your CFA first. Since the majority of senior analysts publishing reports have their CFA, they are aware of the time commitment needed to study and pass each level.I think doubling up on both tests at the same time would be very aggressive.

-Frank