Best Practice For Equity Researches

of Dec 2024

Equity research is a critical aspect of investing in the stock market. It involves analyzing company financials and market trends to make informed investment decisions. For individuals looking to develop their equity research skills, there are various education and teaching products available. However, choosing the right product can be a challenging process. This article offers valuable tips to consider when choosing practice for equity researches products.

Determine your learning needs

The first step is to determine your learning needs. Equity research products vary in terms of skill level, teaching methods, and content coverage. Some products cater to beginners, while others are tailored to experts looking to enhance their skills. Therefore, before choosing a product, it is essential to assess your knowledge base and determine what you hope to gain from the program. This way, you will select a product that suits your learning level, pace, and preferred teaching method.

Examples of equity research products by skill level

• Beginners – Udemy’s “Equity Research for Beginners,” Coursera’s “Fundamentals of Equity Research,” and CFI’s “ to Equity Research” courses.
• Intermediate – Morningstar’s “Equity Research Methodology and Critique” course, Wall Street Prep’s “Advanced Financial Statement Analysis” course, and CFI’s “Advanced Financial Modeling and Equity Research” course.
• Experts – Analyst Hub’s “Advanced Valuation Techniques and Applications,” New York Institute of Finance’s “Advanced Equity Research Workshop,” and Wall Street Oasis’ “Advanced Equity Research Training” program.

Consider the format

Equity research products come in various formats, including online courses, webinars, podcasts, eBooks, and physical classes. While each format has its pros and cons, your selection should depend on your learning style, schedule, and budget. For example, if you prefer flexibility, an online course or eBook may be more suitable, while a physical class would be ideal for those who prefer face-to-face interactions.

Examples of equity research products by format

• Online courses – Coursera’s “Equity Research and Valuation” course, Investopedia’s “Advanced Investing Course,” and Wall Street Prep’s “Financial Modeling Self-Study Courses”.
• Webinars – CFA Institute’s “Equity Research Webinar Series,” RBC Capital Markets’ “Equity Research Essentials” series, and Valueline’s “Equity Research Webinar for Investors”.
• Podcasts – Bloomberg’s “Masters in Business,” Seeking Alpha’s “Wall Street Breakfast,” and Wall Street Oasis’ “Asset Management and Equity Research Podcast”.
• eBooks – Amazon’s “Equity Research and Valuation,” Wiley’s “The Equity Research Handbook,” and Morningstar’s “How to Read a 10-K”.
• Physical classes – CFA Institute’s “Equity Research and Valuation Training,” NYU Stern’s “Equity Research and Valuation” course, and Wharton School’s “Equity Valuation and Analysis” program.

Examine the instructor’s qualifications

Another critical factor to consider when selecting equity research products is the instructor's qualifications. The instructor should have relevant and practical experience in the field, and be able to deploy real-world examples to reinforce concepts. It would be best if you also looked for instructors who are credible and have a strong track record in the industry. Before purchasing a course, review the instructor's bio, credentials, and career profile to determine if they are the right fit for your needs.

Examples of equity research instructors

• Damodaran Aswath – Professor of Finance at NYU Stern School of Business, author of “Applied Corporate Finance,” and widely regarded as a leading expert in equity valuation.
• John Roque – Managing Director at Marketfield Asset Management, author of “Technical Analysis Explained,” and a frequent guest on CNBC and Bloomberg describing his research.
• Barbara Roper – Director of Investor Protection at the Consumer Federation of America, a frequent commentator on securities policy issues, and invest models for investors.

Look for hands-on practice

The best way to develop your equity research skills is through hands-on practice. When selecting an equity research product, make sure it offers practical applications that allow you to apply the concepts learned. Some products offer case studies, simulations or exercises that enable you to practice analyzing financial statements, forecasting earnings, and valuing companies. Engaging in practical exercises can help enhance your critical thinking, problem-solving, and decision-making skills, reinforcing theoretical knowledge.

Consider pricing and value for money

Pricing is another critical factor to consider when selecting equity research products. While there are free products available, high-quality courses and workshops can be pricey. Therefore, it is crucial to examine the product's value for money and determine if the benefits outweigh the cost. Additionally, consider other hidden costs such as additional textbooks, helpful investment tools, and additional software that may be required to complete the course.

Examples of equity research products by pricing

• Free products – Investopedia’s “Equity Research,” Udemy’s “Stock Investing and Stock Trading,” and Valueline’s “Stock Analyzer”.
• Intermediate products – Coursera’s “Fundamentals of Equity Research,” CFI’s “ to Equity Research” course, and Morningstar’s “Equity Research Methodology and Critique.”
• Expert products – Wall Street Oasis’ “Advanced Equity Research Training,” Analyst Hub’s “Advanced Valuation Techniques and Applications,” and NYIF’s “Advanced Equity Research Workshop.”

Conclusion

Equity research is a critical skill for investors and finance professionals looking to invest in the stock market. Choosing the right education and teaching product is a vital component of skill development. By determining your learning needs, examining the format and instructor qualifications, looking for hands-on practice, and considering pricing and value for money, you can choose a program that best suits your needs and goals.