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Equity research analyst-interview help please

arun (owner) (29 Points)

14 March 2012

I am working as an equity research analyst for the last 4 years in a small boutique firm in Mumbai and recently attended an interview for an equity research position in JP Morgan .One of the interviewer asked me whether I can suggest him any stock to buy which he wants to hold it for a minimum 5 years time from now. I was really struggling for an answer; from the panel of interviewers another guy asked me, whether I would first of all suggest smallcap, midcap or largecap stock? Hey guys what do you think is the right answer?

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25 Replies

Nishant (N) (26 Points)
Replied 14 March 2012

Hey Arun!!Were there any walk in interview for jp today and if not then how did u get an interview call??And if yes are there any more for tommorow??Plz reply

suresh (CEO) (27 Points)
Replied 14 March 2012

Hey Arun,I am about to attend an interview in JP Morgan in a week’s time, am very much eager to know what other questions they asked you? How many rounds of interview were there etc? Please let me know your contact details –thanks in advance

veena (associate) (26 Points)
Replied 16 March 2012

Hi Arun,what did you answer to that question? I think largecap is the answer

suresh (CEO) (27 Points)
Replied 16 March 2012

But veena why do you think its largecap? Yes Arun what did you say?

arun (owner) (29 Points)
Replied 19 March 2012

I was totally blank, so I just answered would suggest from largecap stock, for that another panel member asked me, is it possible to foresee anything after 5 years? Or you an astrologer .I just laughed and had nothing to say

suresh (CEO) (27 Points)
Replied 19 March 2012

Yah Arun ,understand in a interview situation ,even the answers we know we can’t answer and forget about such tricky simple questions’ think with so much uncertainty its difficult to make predictions for 5years term, if they ask me I will answer like that. Any other question you remember?

arun (owner) (29 Points)
Replied 19 March 2012

They asked me why you think DCF is not a good model. To get the flow, I initially started answering how DCF is good and thought could recollect the negative points of DCF and say that in the latter part of discussion, but one of the panel members cut me short and said, Arun the question is why it’s not a good model, anyway, as an analyst how do you assume the growth rate and reinvestment rates for a start-up company valuation?

veena (associate) (26 Points)
Replied 19 March 2012

Oh I see----if the question is just about growth rate or reinvestment rate, you can give generic answer but when they suddenly ask specific questions relating to start-up etc how do you spontaneously come out with an answer, unless you have really done a valuation for a start-up company. These questions just look like filter mechanism!!!! Tough guys

suresh (CEO) (27 Points)
Replied 19 March 2012

Hey Arun, listening to your experience, I am seriously thinking whether to attend this interview next week with JP Morgan. Without seriously preparing, there is no point in going to the interview but the billion dollar question is how to prepare? Which books are there specifically for interview preparation for equity research or investment banking roles?

arun (owner) (29 Points)
Replied 19 March 2012

What I am worried now is not just about interviews but once you get the job if you don’t have real stuff ,you will lose your job much faster than the time a trader takes to have his lunch. I am seriously looking to undergo training which not only prepares you just for the 15 minutes interview, though that’s also important but seriously a training which makes me a thorough professional, just job ready. Any enlightened soul here to guide me?

greyhair (accountant) (24 Points)
Replied 19 March 2012

Hey guys---interesting post I have read it all through & particularly Aruns comment “trader” lunch, I am just visualizing how it would be. Oh!! Good I am not trader and I just enjoy having my food in a relaxed manner with some soft music playing in the background.

suresh (CEO) (27 Points)
Replied 19 March 2012

Grey hair what do you do? Reading your comment guess, you are enjoying your retired life!!

greyhair (accountant) (24 Points)
Replied 19 March 2012

My name is karan.For the last four years have been working for a BPO as manager reporting ,have done my BE from Bits Pilani and currently have taken a break .I have made up my mind to work in a front office investment bank or else start my own business. I had approached two senior investment bankers through my known contacts for advice. They suggested me to take some formal training and suggested me to join “Global banking Training” who conduct certified investment banker program

suresh (CEO) (27 Points)
Replied 19 March 2012

Karan, the senior investment bankers you mentioned where are they working? From Aruns interview experience one thing is very much clear for me that to even approach for any interviews, I need to get some formal training or else would sound like a complete idiot in the interviews. But karan do you have any idea how good is this program run by Global Banking Training? Do they provide any placement support?