Your First Year in Equity Research

If you’re a junior in sell-side equity research today, you’re entering at a strange time.

The pay isn't what they used to be. Budgets are tighter, headcount is leaner, and senior analysts are being asked to do more with less. That tension shows up everywhere.

And quietly, many senior analysts are frustrated. And they are DMing me the same complaints: juniors are immature and lazy, they don’t present themselves well, and they don’t take ownership. Fair or unfair, that’s how seniors feel about you.

At the same time, I have noticed not the best college graduates are heading into finance.

I’m an evangelist for helping capable people from non-target schools break in. But I’ll also say something uncomfortable: on average, a candidate from a target school is stronger than one from a non-target. That isn’t elitism; it’s pattern recognition. And today, I regularly see people landing sell-side associate roles from schools I have never heard of.

And I understand why this is happening. The money is not there anymore. The most capable people now have more leverage than ever. They can use labor, capital, distribution — the internet and AI — to build something of their own. If they don’t start companies, they choose tech for better pay and lifestyle. The competition hasn’t disappeared; it has simply shifted.

But here’s the paradox. Because the best talent is not choosing sell-side equity research, there is opportunity for those who stay. The bar to stand out might be lower now. #1 analysts are going corporate, those who stay can either claim the throne or move up the rank.

The question is whether you’re positioning yourself to be competitive when that moment comes.

If you are just starting out in sell-side equity research, this article is about what you can control — and how to position yourself to win.

Control what you can control

Now let’s talk about what you cannot change.

You cannot change your senior analyst. You cannot make the industry as lucrative as it once was. That is structural.

You can leave the industry, but let’s not romanticize the alternatives. Investment banking has worse lifestyle and tougher personalities, with many people exiting within a few years. Corporate roles come with politics, slower progression, and lower pay. The buy-side does not reward effort, it only pays those who produce (alpha). No path is perfect.

There is also no shortage of middle office and back office people who would gladly take your seat tomorrow.

So what can you control?

You control how you show up. You control your maturity, your ownership, your work ethic, your professionalism, and your reputation. You can decide whether you become part of the complaint or the exception.

If you want to get paid, you have to be good.

If you don’t want to read any further, take this with you: if you aren’t good, you aren’t getting paid anywhere.

Wall Street — like any high-paying profession — does not reward average. If you are average, you become replaceable. And replaceable people eventually get cut. In the AI era, this dynamic will only intensify. The top performers capture a disproportionate share of the value created. The mediocre get automated and laid off. That’s why the top AI companies are handing out eight-figure compensation packages to elite talent — they understand power laws.

It’s true that sell-side research does not pay what it did in its golden era. But what it still provides — especially early in your career — is an extraordinary skill stack.

You learn how to analyze businesses and industries at a deep level. You observe how companies create value and how they compete over time. You learn to communicate clearly and to sell ideas persuasively. You learn to manage relationships and carry yourself in front of executives and investors. Most importantly, you gain a real understanding of how the capital markets ecosystem works.

The operational and sales skills have been invaluable in my own journey as a founder.

If you want to make serious money, you have to solve other people’s problems well. And the only way to solve problems well is to build rare, valuable skills. That requires hard work. There is no secret formula. No hack. No shortcut.

Why is it called "sell-side research"?

On my first day as an MBA equity research intern, my mentor David took me out for coffee and asked a simple question: “What do you think your job is this summer?”

I answered confidently. I said my job was to become an expert in Cable and Media (that’s the team I was assigned to), do good modeling and write clear notes. In my mind, technical excellence was the obvious answer.

He laughed.