How to Write A Meaningful Report

This Article was originally published in The Global Analyst

Research in general is hard, equity research even more so.

Research is about looking at history and guessing the future direction. The first part may be easy and doable but the hardest part is the second aspect of guessing the future. Most of us are trained to handle equity research as a quantitative process that includes setting the context, establish a framework, collecting data, analyzing data, and writing the report. Most probably, this is how equity research process is drilled into us in business schools and other learning places.

While this process is obviously a good place to start, it cannot stop there. There are many qualitative aspects to equity research and taking cognizance of that can greatly improve the way we analyze and present things.

Here are some research tips that I can explain drawn from my experience over the years.

1.????? Using Adjectives: It is very tempting to use adjectives while making a point just to give it more emphasis. Analysts also give emphasis by showing a word or group of words in bold or italics or underline. However, use of adjectives can be superfluous and can take away the attention from the meat of the argument. Adjectives like extremely, wonderful, worst, etc. tend to be used more often and the same sentence will look much better without adjectives. Avoiding adjectives can bring the seriousness better than otherwise though it appears counterintuitive.

2.????? Using Colloquial words: After the advent of social media, use of short phrases and colloquial words have increased (for e.g., pretty much). Speaking form is different from writing form. It is best avoided in writing form. In other words, do not write like how you speak.

3.????? Do not Plagiarize: One may get inspired from someone but should never copy which is technically what is called plagiarism. There are software programs to check and hence it is not easy to plagiarize anymore. Still, due to time pressure, many resort to convoluted plagiarism, which may still be detected. It is best that one reads, understands, and then develops an argument using one’s own thinking.

4.????? Be mindful of Sources: Research process is highly based on tapping several sources. In this age, these sources can be formal (like academic papers or equity research reports) or informal like chats that happen in WhatsApp groups etc. Newspapers are a resorted to source when it comes to research. However, it is best to avoid newspaper citing as newspaper reporters or analysts aim for sensation more than correctness and pressure to file reports leaves them with little time to fact check. In addition, the style of newspaper reporting tends to rely more on personal quotes (Oil minister said so and so). Hence, the flavor is different and therefore the purpose.? It is better to go to the source, delineate and then present rather than blindly relying as the first point of source.

5.????? Visualizing a pre-existing context in a new context: A pre-existing context (like national champions in country X) can provide fodder to reimaging them in a different context (national champions in India). In my long years of research experience, this served me very well. While I normally enjoy a well-presented context, I try to imagine them in a new context and this has produced some good findings. (I could have said “fantastic” findings, but I am mindful of my first suggestion to avoid using adjectives!).

6.????? Observe unusual patterns: Research analysts are normally bogged down so much in numbers, sometimes it can really create a numbness of brain. This will not enable one to observe unusual patterns due to data errors. For e.g., the INR/USD number can be stated as 825 instead of 82.5 and can go unnoticed if we fail to question the pattern. Of course, a feel for unusual patterns comes out of experience (knowing well that Rupee cannot be 825) but it is worth examining unusual patterns one more time just to avoid some embarrassing findings.

7.????? Share Knowledge: The more you give, the more you get. Analyst day job is spent mostly reading several articles and research papers. However, only some will get used where many will be either dropped or filed for future use. However, if one develops the habit of sharing some interesting articles (may or may not be useful in the current context) generously with others, over time you will also start receiving many in your inbox.

8.????? Seek Research mentorship: Mentoring is normally understood in a career sense more than anything else. However, every activity that one pursues can be actively supported by way of mentors who are good in that field and whose expertise can be helpful. Research is no exception. As equity research analysts, one can seek and get research mentorship from other experienced analysts (inside or outside the system) and constantly bounce ideas and get valuable perspectives.

9.????? Read Books: As analysts we read many articles, but reading books is slowly turning out to be out of fashion mainly due to lack of time. However, the experience of devouring a book is quite different from that of an article or a research paper. Books are more intense, and therefore require more time. However, the deep understanding one gains by reading a book is no comparison to other avenues. Successful fund managers and corporate CEO’s have this one habit running across.

10.?? Promote your Research: It is important that you promote your own research through many social media handles that are available today. Promoting one’s work is as important if not more important than the work itself. It can help receive counter viewpoints as well as accolades. Shyness can prevent one to promote their research but it is a bad idea.

11.?? Establish your Style: Each person has a unique writing style. Some have a straight way of explaining things, while some other can have a great sense of humor while presenting something. (For eg., economists successfully predicted the last 7 of 5 recessions!). It is important to identify and hone your own style to create a long-term impact.

12.?? Some Writing tips: Do not write long sentences. If they get long, break them. Also, try to be grammar correct. Again, there are software programs that one can take help with. Presenting ideas in correct and cogent language can improve the appreciation value.

Hope this is helpful to both experienced as well as wannabe researchers.

Happy equity analysis.