How can I be an independent equity analyst and sell my own research on sites like Reuters?

Water Cooler Careers
#1

I have been an accountant for more than 15 years now and pretty good with working with listed companies - preparing accounts for a couple listed companies. Im hoping to sit for CFA level III next year and a regular on stock market chat forums; and I think I have a good grip on equity research, though im not employed as an equity analyst. My plan is to continue with my work and to provide independent equity research reports without complicating independence. I plan to cover UK markets - the smaller end - LSE AIM shares.

#2

Make amazing calls based on innovative primary research and cap your downside risk. It’s all about your performance.

#3

ive thought about this myself…

most importantly you need to have the right licenses to “sell” the research as investment advice. it different from going to an internet forum and telling people XYZ is going to the moon. there is a reason every IB sell side report has a page worth of disclosures/disclaimers. the CFA is a good start, and might qualify for some exam exemptions but registration is a seperate process. if you want to be taken seriously by institutions, you need to be legit.

my plan would be to invest in a professional looking webside and start from there.

#4

Thanks HugeGamma, maybe we can pull some resources if you are considering this seriously.

#5

I’m in the process of trying to start my own shop. You don’t need a license if you rely upon the “publisher exclusion” of the Investment Adivsor Act of 1940. You can’t provide personalized investment advice and your research has to come out on a consistent basis.

#6

true but the big money is in the stuff that is not exempt… if you are serious about having a legit business with corporate clients you need the licenses… not a big deal at all for someone that can pass the CFA exams

#7

The market is saturated and has been trending toward free content for over a decade. I think you or anyone would have a difficult time launching a new paid service. The only way to get a paid service off the ground is to have a stellar reputation for making winning calls. If your calls are that good, why not just go work on the buyside instead? You could make more money with none of the administrative hassel of running a publishing business.

Good luck either way.

#8

I know a guy with a newsletter that generates >$100k a year. Spends about 10 hours a week on it (and earns another $100-150k in his day job). Pretty solid. But, alas, that’s some survivorship bias. Most people that try this fail miserably.