In my short equity career I’ve experienced 6 roles, to each the most important question is:
- The Academic: what is it and what should its fair price be?
- The Corporate finance manager: how do I manage the firm’s money?
- The Funds manager: which ones to buy and how will I exit?
- The Investment banker: how do I best underwrite this security?
- The Mid-term investor: if I buy at this price what will this year’s profit be?
- The Speculator: what will its price be after 3 days?
Each is vastly different from the rest.
As one grows incrementally (assets under management, time in the industry, age, position), the risk of confusing the role being assumed grows factorially.
Image source: Dilbert