Powerful, Disruptive Equity Analysts

An op-ed piece in this morning’s New York Times, titled “Powerful, Disruptive Shareholders” written by Wall Street veterans

http://www.nytimes.com/2014/04/09/opinion/powerful-disruptive-shareholders.html?_r=0

Why do most earnings calls reveal so little about the management and so much about equity analysts’ fears? If the objective is a forward-looking collegial debate on value creation, then first those analysts should increase their own odds of identifying and welcoming high potential areas of debate with management. How many times do you see an equity analyst with the right language skills and self-esteem control the discussion with management (off target, verbose questions and fears about management’s response)? My guess is 1/20. Consequently the relationships are virtually never peer-level or built on trust and the results (the observations and hard evidence shared) is formulaic, minimal value and dull.

If Equity Analysts really want to excel they should check back here this Spring for a new upcoming podcast, “Changing Analysts Perspective.”

© James Berkeley 2014. All Rights Reserved.

 

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