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]