Jason,
First off, as many have done so, I'd like to thank you for your time and efforts in both writing this article and continuously responding on everyone’s comments.
I am a 30 yr old process engineer working in the personal care industry with an ongoing goal of one day being a great investment analyst. I love the idea of breaking down a company and finding its intrinsic value. Yet, saying that I love it and actually doing it, is much, much different, as you've touched on. When I realized I wanted to become an analyst, I began taking the CFA exams. I am currently a CFA Level 3 candidate - yes, I'm wasting precious studying time after work to bug you. The last three years I've spent January thru May studying for the CFA Level 1-3 exams. When I'm done with the exams in June, its summer, I'm burnt out from studying, and I’ve consistently failed at taking the next step – the real step – of doing my own real analysis and investing a small portion of my money based off that analysis. When I do sit down to do analysis, I feel extremely lost. So I turn to books. I’ve read a good number of books – though there are a lot more that I have to read. To name a few, I’ve read Peter Lynch’s books, Quality of Earnings, Common Stocks and Uncommon Profits, When Genious Failed etc. I’ve read some great biography’s – such as both of Buffets.
Bottom line, I’m one of those “I want to be a research analyst and I’m doing the CFA exams, but I haven’t analyzed or invested in squat” people. Your article and your responded comments are hitting right at home for me. It has made me realize just how important it is to stay focused and read, read, read, read, read, as much and as often as you can. I realize that the more I read, the more I learn, and the more likely I will be able to transition to the analysis phase, on my own time.
Once the CFA exam is finished in June, I plan to read Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective (with Thomson One Access Code), as I feel confident I have the tools to learn from this book. After, I plan to read your other suggested book - Financial Management: Theory and Practice by Brigham and Erhar. Thank you for suggesting these to everyone.
And now for my questions:
1. These books (Financial Management: Theory and Practice by Brigham and Erhar and Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective by Stickner) do not look like quick reads. How long would you suggest it should take to read and work through these books with a usual 40-50 hour work week schedule? Is company analysis suggested while reading, or after completing these?
2. You’ve mentioned on multiple occasions that it took you 5 years to gain the necessary qualities and to develop the tangible skills to gain a research analyst job. For those 5 years, how did you manage to gain these skills with work/school/social schedule requirements, assuming you had 40-50 hours of time obligated for work and/or school? You also mention keeping up with the markets from multiple sources (WSJ, FT, etc.). Could you share your daily and weekly schedule for managing your time to read the papers to a sufficient level, read text books to learn skills, and analyze stocks? Any suggested time management advice for those of use working a 40-50 hour work week and aspiring to become a research analyst? I feel like I went to the Derek Zoolander School for Kids Who Can’t Read Good and Want to Learn to Do Other Stuff Good Too when I read half the WSJ and it’s an hour later. If I did WSJ and FT completely, I’d need 4 hours every morning. How many hours per week should an aspiring research analyst be spending in addition to a 40-50 hr workweek on market reading, learning skills, and/or analysis? How much time did you spend per week during those 5 years analyzing stocks, learning and reading? Do you keep a strict schedule in terms of wake up time? What’s your favorite color?…just kidding
Sorry to fire off so many questions. There’s just so much to ask to learn from you.
Thank you for any feedback on any of my comments or questions. And again, thanks for your contribution to all of us for giving us a few bricks to build or own path.
Sincerely,
John C.