Congrats Richard on your appearance on Bloomberg and thank you for the insightful post.
There is no money in the business and as long as analysts are restricted, the business will die--its days are counted. So the demand for sell-side analysts will decrease.
But also the supply of sell-side analysts will decrease. Newer generations are skipping the sell-side stepping stone and going directly to the buy-side. It makes sense, more money and a better life-work balance.
Thanks. Buy-side is a harder job, going directly to the buy-side doesn't mean all of them will succeed, especially when majority of the buy-side seats remain close minded to fresh college grads.
It's a profession that measures your output not input. Better life-work balance is only for those who produce.
Thanks Richard! Great analysis as always. I would say that the modeling on the sell-side is still useful as some buy siders I talk to still use it and play around with the inputs to flesh out their own model rather than switching over to a service like Tegus, even if they have access to it. But yes, conferences and site visits will always be able to provide value for smaller investors who can’t get access on their own to mgmt.
Interesting, thanks for the insight. Maybe some sell-siders model better than a 3P vendor? The dispersion of work quality in sell-side research is quite high, so what you shared makes sense that every buy-sider still has a go-to sell-side shop for model access.
Congrats Richard on your appearance on Bloomberg and thank you for the insightful post.
There is no money in the business and as long as analysts are restricted, the business will die--its days are counted. So the demand for sell-side analysts will decrease.
But also the supply of sell-side analysts will decrease. Newer generations are skipping the sell-side stepping stone and going directly to the buy-side. It makes sense, more money and a better life-work balance.
Thanks. Buy-side is a harder job, going directly to the buy-side doesn't mean all of them will succeed, especially when majority of the buy-side seats remain close minded to fresh college grads.
It's a profession that measures your output not input. Better life-work balance is only for those who produce.
Thanks Richard! Great analysis as always. I would say that the modeling on the sell-side is still useful as some buy siders I talk to still use it and play around with the inputs to flesh out their own model rather than switching over to a service like Tegus, even if they have access to it. But yes, conferences and site visits will always be able to provide value for smaller investors who can’t get access on their own to mgmt.
Interesting, thanks for the insight. Maybe some sell-siders model better than a 3P vendor? The dispersion of work quality in sell-side research is quite high, so what you shared makes sense that every buy-sider still has a go-to sell-side shop for model access.