Suggestions for Modern Security Analysts

14 Pages Posted: 28 Apr 2010 Last revised: 21 Apr 2015

See all articles by Joseph Calandro, Jr.

Joseph Calandro, Jr.

Fordham University - Gabelli Center for Global Security Analysis

Multiple version iconThere are 2 versions of this paper

Date Written: April 12, 2010

Abstract

The field of Security Analysis has generally come to embrace the theories of modern economics, seemingly without adequate consideration for how to bridge the gap between theory and practice. The consequences of this, most recently experienced in the 2007-2008 financial crisis, have been significant. To help rectify this we provide practical suggestions for modern security analysts to consider, which center on four key areas. First is obtaining a working knowledge of financial/economic history, which will help put security analyses into context. The collapse of Long-Term Capital Management in the late 1990s is compared to recent events experienced during the financial crisis as an example. We also suggest that a multi-discipline analytical framework, which incorporates a common-sense approach to risk management, be adopted along with contrary thinking, and an understanding of - and appreciation for - market complexity. Cumulatively, these suggestions could lead to more insightful analyses and profitable investments at lower levels of risk over time.

Keywords: Valuation, Investments, Security Analysis, Risk Management

JEL Classification: G10, G24

Suggested Citation

Calandro, Jr., Joseph, Suggestions for Modern Security Analysts (April 12, 2010). Available at SSRN: https://ssrn.com/abstract=1596633 or http://dx.doi.org/10.2139/ssrn.1596633

Joseph Calandro, Jr. (Contact Author)

Fordham University - Gabelli Center for Global Security Analysis ( email )

531 Hughes Hall
441 E. Fordham Rd
Bronx, NY 10458
United States

HOME PAGE: http://www.linkedin.com/in/josephcalandro/

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