Dick Bove has some words of wisdom for those of you considering a career following in his footsteps: don’t do it. According to the original furry woodland creature, the business of equity research just isn’t what it used to be and cautioned all would-be disciples against aspiring to be junior Bovettes.
“It’s becoming rarer and rarer to find someone who will pay for research,” says Bove. “It’s not like you go out and say, ‘This is the product, this is the price for the product, and if you want the product you can pay me.’”
You give away research for free for six months to a year in the hope that someone will pay you,” he says. “And in many cases they won’t. They take it for free and refuse to pay – there are people that we’ve dealt with in Britain who think it’s their right to get the product and that we have an obligation to send it to them.”
But Dick Bove has made a career out of recommendations, not complaints. So if he had to do it all over again, where might DB recommend going to work today?
“Traders can decide that the profits they make are due to the wonderful job they’re doing for execution, rather than the advice they’re getting from research, and therefore the money doesn’t filter through. No one in their right mind wants to go into a business where the payment trail is so convoluted,” Bove confides.
Dick Bove on why you probably shouldn’t go into equity research [eFinancialCareers]
I can send Vinny and a coupla my boyz ova to compel payment. I can make dem losers pay.
-cg
Avi: You got a toothbrush? We’re going to London. Do you hear that, Doug? I’m coming to London.
[Avi arrives in London]
Doug the Head: Avi!
Avi: Shut up and sit down, you big, bald fuck. I don’t like leaving my own country, Doug, and I especially don’t like leaving it for anything less then warm sandy beaches, and cocktails with little straw hats.
Doug the Head: We’ve got sandy beaches…
Avi: So? Who the fuck wants to see ‘em? I hope you appreciate the concern I have for my friend Franky, Doug. I’m gonna find him, and you’re gonna help me find him, and we’re gonna start at that fight.
Did I just see a snowy owl in the woods?
Rick,
Ask Greg fucking Michaels (the middle name is inspired by the wonderful phone calls of the fun lady who collaborated with Raj Raj) to write to them. They will pay in no time to stop the pain.
There is no value to sell-side research – Reg. “FD” put an end to that game.
Hmmm…I know equity guys at large shops that make plenty of dough, which filters back to research at year end.
So, moral of the story – you can work in bum fuck Florida in your underwear from your couch, or you can get on the trading floor when you announce coverage MS / GS and get paid.
We know it’s tough, but me think
Dick should refrain from retreating too deep into the woods.
“According to the original furry woodland creature”
This borders on funny. Is this a Greg original?
@8 no.
http://dealbreaker.com/cgi-bin/mt/mt-search.cgi?IncludeBlogs=10&search=woodland+creature&sa.x=0&sa.y=0&sa=submit
http://home.earthlink.net/~bronzedragon/sitebuildercontent/sitebuilderpictures/gnome.1.gif
Bovetious!
For Dick to think someone would actually pay for his nonsense is the funny part here. “Buying opportunity of a generation”, huh dick?
Sure, if you were buying a massive amount of puts, I guess it was…
Good call, dick.
Thanks for the tip Dick. Very insightful. Nobody was talking about the death of sell-side research until you brought this up. Thanks really