Thoughts on “desirable” sectors?
I’ve heard that TMT and Biotech are quite coveted — what about energy, medical supplies/devices, financial institutions, and industrials?
I’ve heard that TMT and Biotech are quite coveted — what about energy, medical supplies/devices, financial institutions, and industrials?
Career Resources
Depends on your career goal. I am willing to bet TMT and health care (where biotech sits) buyside is always looking for people: yes, multiple was stretched (so much dumb money piling in with no regard for valuation, thank you Robinhood for enabling that) but these businesses still grow and these sectors are where capital is flowing into in the long-run.
Med devices: growth, but might require some technical expertise. Could be good sector to be.
Energy: Slow decline, despite desperate attempt to pivot into renewable.
Financial institutions: Pure financials are too specialized - different accounting, regulatory frameworks, not really growth sector.
Industrials: Cyclical, not really a growth sector either. Has some secular themes like IoT, smart cities, blah blah blah.
To summarize what I’ve learned on the sell-side about sectors, all of the most sensible/desirable sectors for a long-term career include three essential aspects: (1) investor interest, (2) high barrier to entry, and (3) stable coverage universe.
— personally, I would avoid biotech/speciality pharma if you don’t come from a bio/medical school/phd background because you will never have an edge compared to most other market participants in this space. It will be very difficult to progress to a senior level or gain any traction because you will literally be competing with former doctors at the MD/PM level. Just take a look at some of the biotech firm’s covering analysts.
— additionally, I personally would be hesitant to join any new trending sectors like fintech. Although there may be more of an appeal working in a rapid growth sector, don’t be fooled that most companies are currently unproven. There is a very real possibility that the top few will dominate the entire sector due to scale, leaving the rest of your coverage to die.
If you follow this way of thought, it should help you better focus on categorizing each sector by its pro’s and con’s. Ultimately, there’s value to be added in almost all coverage groups in same extent. Your most desired sector will undoubtedly vary from someone else’s, given you might have different strengths and interests.
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