So feeling really down at the moment. I am a CFA charterholder and just cant land a job to save myself.
I have 5 years experience in financial analytical roles, doing lots of valuations, credit analysis and other financial modelling work at 2 big4 firms.
Now, back in Australia and cant land a gig. Its been 3 months. I know most will say thats not very long, but I wouldve thought itd be a bit easier with my experience.
Thinking of starting up my own thing. Does anyone know how hard it would be to do valuations or perhaps equity research and get into companies and sell this to them?
Doing your own thing is always harder than working for the man. That’s why I’m not doing my own thing now, though I’d like to at some point.
I think you could have some success doing the financial anlaysis/modelling type stuff for corporates. I say that because I know and work with people that do. I don’t have experience on the ER/valuations side to really comment on that line of work, but I’d guess that would be harder to go solo with.
Certainly something I’ve been considering but the golden handcuffs keep me in my little cube plugging away each day.
Extremely difficult if you don’t have a track record of making good calls. There’s a reason why many companies that invest in hedge funds require a three year track record. In your situation, you not only have to put together some insightful stock picks but you will also have to pitch your stuff aggressively. Many people have no idea how hard it is to be a good stock picker. I think your best bet is to get on somewhere with a steady income and probably you have to change the way you’re networking. Trying to start your own research biz is only a good idea if you have money saved up and a strong rolodex of contacts to begin with.
Have you ever considered something web-based? An ex-coworker of mine (was a broker for 15 years) started a stock-picking website… something simple and subscription based. He does a few monthly picks and charges people 20 or 30 a month for his recommendations and market color. Makes a pretty good living.
If you are even halfway decent at valuations, you could probably do that. As a former ebusiness owner, I can say the setup fees are fairly low. Biggest expenses I would say are inital web design (but that can literally be outsourced very cheaply these days) and legal consultation just so you get your disclaimers right (So no one can sue you if one of your reports is off target). Merchant accounts to accept credit card payments are inexpensive as well. And as you are just selling access to reports, your overhead is just hosting fees and advertising (which will be your biggest expense).
It might take time to get a following, but after your initial outlay you are not spending much to keep it going. Then its just a matter of building a track record that you can further use to sell your services. Having the charter and 5 years of experience puts some weight behind you, and tells people you aren’t some slapdick in their mother’s basement pumping stocks.
If you have some decent market commentary and push out a couple reports a month (as well as maintaining current) in addition to proposing ideas, people will pay for that. The hardest part is just getting your name out there, but thats advertising. If you charge $30 a month… with only 100 subscribers you’re grosssing 3k a month… and 100 people is nothing…
The other route would be offer FREE reports and sell adspace… but to be honest, people value things by what they pay for them, and you probably wont be taken seriosly.
Put it this way, if ex-Philly Lenny Dykstra can make money by charging people for access to his website only to tell them to sell way out of the money options… someone like you who knows what they are doing can make some coin too.
And if you fail? So what, you’re out a couple grand at most. If it takes off, you can do your job on an iPad in a bar at 11am and live the dream.
BTW: I was literally about a month away from doing the above when I was unemployed for a year. Even had the domain bought… but things fell into place career wise and the rest is history.
I have thought about that, and I have plenty of experience creating and maintaining a website and have one that I use as my kind of home for freelance work I do (which is very little).
Nevertheless, the biggest issue, as you mention, is getting those visitors to the site. I for the life of me struggle with this with any web venture I have ever tried.
i may be getting an offer in M&A at a mid ier accountant. Small transactions like 5m to 10m usually. But can also be in the 50m to 100m range sometimes.
Reallynot happy because it would be in accounting firm and have to keep timesheets, I really hate that.
Seems like I can only get in at the accounting type firms with my resumes. Banks dont want anything to do with anyone who hasnt been in a bank before, guess its symptom of the current economic environment. Lots of people floating around with banking experience and not enough positions.
I’m based in Australia (Sydney, to be precise) so I’ll give some local perspective on the equities research scene.
Three months isn’t a long time, certainly I know some people on the buy and sell side who have had to wait 6 months before being employed. As you put it - lots of people, not many positions, and my guess would be that you don’t have sufficient local experience vs. other candidates.
Second, do you have a network you can tap. I know at least one position for equities research at a bulge bracket that is being marketed by word of mouth. It is a small world.
Third, and related to the first point, conditions are still tough. I know at least one second tier broker (i.e. not an investment bank) that cut a few senior analysts over the past couple of weeks. I doubt it will be the last as the revenue pool continues to shrink. So don’t despair…
Anyway let me know if I can help you out with advice for the local scene.
