Recent Posts

Hey, I Wrote a Book!

By Derek On December 14, 2011

I have written a free e-book that you can download on this blog. It is called, “Yo! Be a Better Broker.” The book takes an irreverent look at the cash equities business in investment banking and discusses the various players and what they do. We also look at techniques that work on the job and techniques that don’t. Like an ejection seat on a helicopter, techniques that don’t work are a waste of time and can end your career prematurely.

Some of the material is from the website but a lot of it is new and can only be found in the book (otherwise why write the damn thing?). The book itself is 45 pages long and divided into ten easily digestible chapters. At the end are two chapters on dissecting real research, broking the real story and composing effective real voicemails using that material. You won’t find this stuff anywhere

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How to Read an Equity Research Report

By Derek On December 8, 2011

“In theory there is no difference between theory and practice. In practice there is.”  – Yogi Berra

Reading equity research is a large part of the day for equity sales, buy side analysts and fund managers. Research, in the industry, is often referred to as “product.” Big banks have dozens, if not a hundred or more research reports being published every day and the bigger the operation, the more the product. As a sales person you will be flooded with “product” most days and your effectiveness (and how you get paid as a result) will, in large part, be determined by how you promote the research to clients and get orders on the back of it. This is called “broking the story.”

When I get to work bright and early and happy, that day’s research often lands with an ominous “thump” on my desk. I can judge the

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“Black Hawk Down:” China – On the Ground Report

By Derek On December 2, 2011

A friend of mine, who wishes to remain anonymous due to the hot pursuit of several ex-wives, mistresses and unpaid bar tabs, sends me this report today from Dongguan in Guangdong province. “BHD” is a businessman and a canny observer of the human condition. He spends half his time in China burying himself in “cultural activities” and the other half raising honey bees in Switzerland. His comment on Chinese banks calling in loans is alarming. Here are his observations of the last few days:

 1.        The travel agent I randomly found on a Shanghai streetcorner to purchase my ticket to Guangzhou told me business was terrible and that she hadn’t sold a ticket for 2 days (however my plane was basically full).

2.        Taxis can be found with incredible ease in Shanghai, almost shockingly so… similar toTokyo after the bubble burst.

3.        My friend runs an LED trading company in

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