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James J. Valentine, Best Practices for Equity Research Analysts. New Delhi: Tata McGraw-Hill Education Private Limited, 2011, xx + 437 pp., `495 (Paperback). DOI: 10.1177/097226291201600210
The book takes a fresh approach to equity research analysis by raising the most fundamental question about the impart- ing of skills required for the job. The present-day equity analysts need much more than what they posses since the best practices for equity research analysis are passed on to the most-practicing analysts by their mentors, which makes them no better than what their mentors were. The book emphasizes the need to impart best practices in equity research in a more organized and formal way as a tool for training and development that imbibes a system of continu- ous upgradation and improvement.
The book prescribes certain best practices equity ana- lysts need to follow, albeit in a drab manner, not making it a lively reading. Though, many of these practices are too common to make a mention of whereas many others are easier told than practiced, especially in context with mar- kets and conditions such as India. However, instead of talk- ing about financial analysis, the book covers topics in terms of how the analysts should manage their time, resources, data and contacts in order to identity the mispriced stocks and generate ideas that help the analysts come up with the best stock picks.
The book, therefore, may be recommended as a manda- tory reading for the analysts at least at the beginning of their career who want to develop an edge later....