Note about the Author’s 2025 Edition: This edition of Best Practices for Equity Research Analysts is materially identical to the original edition published by McGraw-Hill in 2011 as a hardcover copy and all other versions published through July 2024. The only changes are updates to the copyright and publisher details, as the publishing rights have reverted to the author. If you have already purchased an edition published by McGraw-Hill prior to August 2025, you do not need to acquire this version.
A real-world guide to becoming a top-performing equity analyst
Praise for Best Practices for Equity Research Analysts:
"Jim Valentine has taken his decades of experience as a highly successful security analyst and written an effective and comprehensive guide to doing the job right. I only wish I had this book by my side throughout my career." — Byron R. Wien, Vice Chairman, Blackstone Advisory Partners LP
"Given the fast pace and high-pressure nature of the markets, analysts don't have the luxury to make mistakes. James J. Valentine's Best Practices for Equity Research Analysts should be required reading for all new and experienced analysts, particularly those who were not lucky enough to be brought up in the business under a mentor. Valentine can be that mentor." — Jami Rubin, Managing Director, Global Investment Research, Goldman Sachs
"Jim's book is an excellent window into the world of securities research. Very few works cover the complete life cycle of an analyst and the necessary balance between theory and practice. This is one of them." — Juan-Luis Perez, Global Director of Research, Morgan Stanley
Most equity research analysts learn their trade on the job by apprenticing under a senior analyst. However, equity analysts who work for senior producers often have little time or incentive to train new hires, and those who do have the time may not have research skills worth emulating.
Now,
Best Practices for Equity Research Analysts offers promising equity research analysts a practical curriculum for mastering their profession. James J. Valentine, a former Morgan Stanley analyst, explains everything today's competitive analyst needs to know, providing practical training materials for buy and sell-side research analysis in the United States and globally.
Conveniently organized for use as a learning tool and everyday reference on the job,
Best Practices for Equity Research Analysts covers the five primary areas of the equity research analyst's role:
- Identifying and monitoring critical factors
- Creating and updating financial forecasts
- Deriving price targets or a range of targets
- Making stock recommendations
- Communicating stock ideas
Expanding upon material covered in undergraduate courses but written specifically to help you perform in the real world, this authoritative book gives you access to the wisdom and expertise of leading professionals in the field. You'll learn best practices for setting up an information hub, influencing others, identifying the critical factors and information sources for better forecasting, creating a better set of financial forecast scenarios, improving valuation and stock-picking techniques, communicating your message effectively, making ethical decisions, and more.
Without
Best Practices for Equity Research Analysts, you're just treading water in the sink-or-swim world of the equity analyst.
James J. Valentine, CFA, DBA, was a distinguished equity research analyst recognized among the top three in his sector for ten years and by Forbes as one of the top three among all U.S. sell-side analysts. After 14 years in equity research, he became Morgan Stanley's Director of Training and Product Quality, creating a training program for 500 analysts globally. He authored the best-selling book Best Practices for Equity Research Analysts and founded AnalystSolutions. Dr. Valentine earned his DBA from DePaul University, where he was a professor, and later, he directed Marquette University's Applied Investment Management program. In 2024, the CFA Institute adopted his curriculum for its new Practical Skills Modules, incorporating it into Level II of the CFA exam curriculum. His second book, Inertia, expands on the first-ever comprehensive qualitative study of equity research analysts. He continues to work with students, practitioners, and researchers to advance the equity research field.
