The Stock Market & Warren Buffet Attracted Me!
I’m an electrical engineer, who’s become an investment analyst. I just followed what interested me and found out that my skills were transferable and useful across different professions.
Sanjeev Joshi, Investment Analyst (Money Management), Executive Director (Investment Analyst), UBS Global Asset Management (Singapore).
Education history:
- 11th & 12th – Science
- Graduation – Electrical Engineering, IIT-Roorkee
- Post graduation – Master of Management Studies (MMS), Mumbai; MBA, University of Chicago
- Before Chicago MBA: Kotak Securities, DBS Securities, SG Securities
- Post Chicago MBA, last 9 years: UBS, Singapore
Engineering days
In high school, I did not think much about my career! I tried for engineering and got in. During engineering, I realized I was probably more inclined towards design and applications as an Engineer. Closer to graduation, I found out that at work most of the time of an engineer is spent on managing people and/or selling or marketing of products. Realizing this, I thought it might be worthwhile to pursue an MBA.
The MBA clarified my interests
The Indian equities market went through a major bull market run around the time I was pursuing my Masters degree. The promise of exponential returns seemed lucrative. Reading books on the legendary investor, Warren Buffet, who became the world’s second richest man (after Bill Gates) by investing in Equities too attracted me to the equity markets. Being part of an industry that offered such huge potential for returns over the long term sounded quite exciting to me! Being an analytical person, I felt the industry would suit me.
A quick peep into the profession
The popular perceptions of this industry is that it’s a volatile, glamorous and, sometimes, confusing industry. The jobs are very well paid. Having been an insider now for more than 17 years, I find that the job requires me to balance quantitative and qualitative skills, travel (which I like), and interact with the top management at companies, experts and thought leaders – which I find quite stimulating.
Downsides also exist. The job involves long hours. The industry is very competitive, and it’s difficult to make money. There are risks to be managed and losses to be sustained. And after each cycle of downturn that the markets undertakes doubts hovering in people’s minds have to be managed. The ability to deal with pressures is one of the top requirements of the job.
Looking back on my high-school & graduation years, I would have liked to take courses in Economics & History. Over time, I have developed a healthy respect for the impact Economic policies can have on country’s growth and some early grounding on the subject would have been good. Similarly, the more I see the world, the more I believe that History rhymes and repeats itself. I think we all will be wiser if we understood the key lessons learnt from our past experiences.
Advice for those aspiring to be an Investment Analyst
Be sure that you possess these abilities, which are a must for success:
a. Quantitative & Analytical ability. That’s the reason why you find engineers (like me) take this line. If you love that, think about this stream. If not, it might be better to stay away.
b. Ability to deal with a grey world: Somewhat contrary to finding a solution to a problem, the job requires evaluation of an Industry’s or Company’s position and often requires a decision to be made, positive or negative, in the face of incomplete information. So, one should be comfortable with the idea of a grey world, as opposed to a black & white solution.
c. Ability to stomach losses: Despite one’s best effort, one finds that every once in a while, a company or Industry starts disappointing in its Growth or Profitability, contrary to expectations. One should have an ability to take losses (getting things wrong) in one’s stride and keep trying to add value.
