Неблокчейн

Ричард Бувэ, аналитик-ветеран (17 брокерских контор, 54 года карьеры) про нынешних аналитиков:

The role of the analyst has changed extraordinarily since I’ve been in the industry. When I started in the late ‘60s, consumers had a lot of money [to invest], and mutual funds started to take off like rockets. Everybody was concerned that mutual funds were not properly managed. You had to prove that you’ve done significant fundamental research on whatever you’re putting into that fund. As a result of that, you had a bunch of firms that were solely doing prudent-man research.

The analysts were gods. They ran everything. Everybody thought the analysts were the top of the industry. But then you got to the late ‘70s, and the analysts didn’t see the market collapse coming. They blew it. And all of a sudden everybody said, these guys are not gods, they’re just like everyone else. They are [idiots]. So now the industry had to decide what to do with all these analysts. The solution was we’re going to use the analysts to support our [investment banking] efforts.

Corporate finance departments were using analysts to bring in corporate finance business. You would go out and promise the company going public that you would not step away from it if times got bad, that you would support it in the market, that you would do an intensive job selling that company’s stock.

That worked until 2002 when the guy from Merrill Lynch [Henry Blodget] publicly stated that this company was no good while having a strong buy recommendation on it. That scandal resulted in a whole set of rules being created. And now you’re back to the same problem. We don’t need the analysts for research. We can’t use them for corporate finance. What the hell are we going to do with these guys? You had a swing in where the profit centre was in the brokerage industry, towards trade execution. The traders became kings because they are executing the sale. So you figured out to use the analysts to support the trading activities of the firm.
You’ve gone from the analyst being at the very highest rank in the industry to being at the lowest rung in the industry, because nobody thinks you need them. A lot of guys do really phenomenal work for many hours, and nobody gives a damn about what they write.

Research is dead as a driving factor in the market.

Источник: https://www.ft.com/content/992c19f6-5df6-41fa-b535-8c2aad1873f3

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6.76K viewsFeb 8, 2024 at 09:10

Ричард Бувэ, аналитик-ветеран (17 брокерских контор, 54 года карьеры) про нынешних аналитиков:

The role of the analyst has changed extraordinarily since I’ve been in the industry. When I started in the late ‘60s, consumers had a lot of money [to invest], and mutual funds started to take off like rockets. Everybody was concerned that mutual funds were not properly managed. You had to prove that you’ve done significant fundamental research on whatever you’re putting into that fund. As a result of that, you had a bunch of firms that were solely doing prudent-man research.

The analysts were gods. They ran everything. Everybody thought the analysts were the top of the industry. But then you got to the late ‘70s, and the analysts didn’t see the market collapse coming. They blew it. And all of a sudden everybody said, these guys are not gods, they’re just like everyone else. They are [idiots]. So now the industry had to decide what to do with all these analysts. The solution was we’re going to use the analysts to support our [investment banking] efforts.

Corporate finance departments were using analysts to bring in corporate finance business. You would go out and promise the company going public that you would not step away from it if times got bad, that you would support it in the market, that you would do an intensive job selling that company’s stock.

That worked until 2002 when the guy from Merrill Lynch [Henry Blodget] publicly stated that this company was no good while having a strong buy recommendation on it. That scandal resulted in a whole set of rules being created. And now you’re back to the same problem. We don’t need the analysts for research. We can’t use them for corporate finance. What the hell are we going to do with these guys? You had a swing in where the profit centre was in the brokerage industry, towards trade execution. The traders became kings because they are executing the sale. So you figured out to use the analysts to support the trading activities of the firm.
You’ve gone from the analyst being at the very highest rank in the industry to being at the lowest rung in the industry, because nobody thinks you need them. A lot of guys do really phenomenal work for many hours, and nobody gives a damn about what they write.

Research is dead as a driving factor in the market.

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