Buy to Sell side....Sell to buy side....?

Mez

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This might seem like a stupid question...but id appreciate if someone could clarify this for me.

I keep hearing that going from the sell side to the buy side is easy...but the reverse isn't. Why is that?
 
It's not overly common...but I wouldn't say that buy to sell-side is difficult.
 
Any specific reasons why? Work-life balance? Better hours on the buy side?
 
(If I was a buy sider) I don't think I would enjoy the transition to the sell side; you go from making investment decisions to pitching trades and answering questions.

That being said, I love my current role on the sell side, but I also don't see myself doing it 10 years from now. And its not necessarily a work/life thing; I enjoy the work and don't mind the hours (except when I'm going on little/no sleep, which is usually my own fault). Additionally, the roles that I would really enjoy on the buyside don't offer significantly better hours, and the stress, although different, would likely be just as high, or higher.
 
i think there are a lot of people who think that the buy side is some type of paradise...yes, there is more upside on the buy-side than the sell-side if you're in the right role, such as managing capital. however, there are plenty of slacker firms out there where the fundamental analysts do a pretty shoddy job of modeling and stockpicking. i'd attribute some of this ineptitude to lack of proper training.

in addition, what i've noticed also is that sometimes people in junior buy-side roles (like those hired out of undergrad or out of mba without prior finance experience) is that they seem to believe they have much better analytical skills than they actually do. i know this because i have the occasional misfortune of talking to or meeting with these folks who think they know a lot but really don't. but i guess it's understandable as i do understand that comp tends to be less on the buy-side for junior roles if they're don't play a critical role in the asset management process.

so to answer your question...you do see some people move from buy-side to the sell-side on occasion, but i think usually it's because they lacked the proper analytical training on the buy-side and wanted to refine their skill set. they tend to be pretty junior people, too. however the transition from buy-side to sell-side is far less frequent if the candidate is further along in their career path on the buy-side because at VP and up, they could be making as much money on the buy side (or even more) while working considerably fewer hours.



Edited 1 time(s). Last edit at Friday, July 13, 2007 at 01:01AM by numi.
 
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