Introduction
Greetings. My name is Parvin Mamedov, and I am an Azerbaijani who grew up in Moscow. After completing my undegrad in Economics I moved to the United States to pursue a career in finance. I moved to New York City in the summer of 2021 to pursue my master’s degree at Columbia Business School. When I first heard about value investing, I only had a superficial understanding of the concept. Like many, I thought it simply meant buying stocks that seemed cheap based on basic metrics like price-to-earnings ratios. I knew it was associated with famous investors like Warren Buffett, but I didn't grasp its true depth and philosophy. It wasn't until I came to Columbia Business School that my perspective on value investing completely transformed. Columbia, being the alma mater of Benjamin Graham, the father of value investing, offered me an unparalleled opportunity to delve deep into this investment approach. Today I work as a research analyst at a value investing hedge fund.
Value investing involves identifying undervalued companies whose stock prices do not reflect their true worth. Warren Buffett, a prominent advocate, once said, "Price is what you pay; value is what you get." This approach emphasizes a long-term perspective, focusing on strong fundamentals rather than market trends. Buffett highlights the importance of patience, stating, "The stock market is designed to transfer money from the Active to the Patient." Ultimately, value investing empowers individuals to make informed decisions based on analysis and intrinsic value.
As an investment analyst, I spend my time reading reports and publications regarding the company of interest, talking to the management team and to industry experts and evaluating a potential stock idea. The last step is to present my work to our investment team. Stock pitch meetings are rigorous evaluations of investment ideas where your analytical skills and reasoning will be put to the test. By preparing thoroughly, anticipating challenging questions, and presenting confidently, you can navigate these intense discussions successfully. This experience not only sharpens your investment acumen but also prepares you for future challenges in the finance industry.
Breaking into the hedge fund industry doesn’t necessarily require a finance-related degree; many of my colleagues come from diverse backgrounds, such as philosophy or engineering. What truly matters is a passion for investing. Internships are often the most common and effective route to securing a full-time position in this competitive field. By building a strong educational foundation, gaining practical experience through internships, networking effectively, tailoring applications thoughtfully, and preparing diligently for interviews, aspiring professionals can significantly enhance their chances of success. With persistence and dedication, the dream of working at a hedge fund can transition from aspiration to reality.
Finance Fellow
career options
Investment management offers a variety of career paths, each with its own focus and skill requirements. Here are some common roles:
Finance Fellow
skills
What are the main hard skills you use on a daily basis in your current job?
Being able to forecast financial statements and build a valuation model is one of the key skills that is used at my job. Examples of valuation models are DCF modelling, Residual Income model, comparable company analysis etc.
Being able to understand and read through different financial forms and filings companies make with the Securities and Exchange Commission, for example 10-K (annual report filed by companies), 10-Q (quarterly report), S-1 (initial registration form for new securities required by the SEC for public companies), 8-K (material event report) etc.
Understanding different accounting standards (GAAP, IFRS, IAS) is the key skill to be able to analyze and research the underlying profitability of the business.
What are the main soft skills you use on a daily basis in your current job?
The ability to dissect complex financial data, evaluate trends, and derive insights is crucial. Analysts need to synthesize information from various sources and think critically about investment opportunities.
Strong verbal and written communication skills are essential for presenting research findings clearly and effectively. Analysts must be able to convey complex concepts to both technical and non-technical stakeholders.
Working closely with portfolio managers and other analysts is vital in a hedge fund environment. The ability to collaborate, share insights, and contribute to team discussions enhances the decision-making process and overall investment strategy.
Parvin
’s personal path
Tell us about your personal journey in
Finance Fellow
:
During my studies, I found myself at a crossroads, unsure of what career path I wanted to pursue for the long term. To keep my options open, I immersed myself in all aspects of economics and finance. I explored various subjects, from microeconomics and macroeconomics to investment strategies and financial markets. This broad approach not only deepened my understanding of the field but also allowed me to discover my interests and strengths. By engaging with diverse topics, I was able to cultivate a well-rounded perspective that would serve me well in whatever direction I ultimately chose.
In Range: Why Generalists Triumph in a Specialized World, David Epstein emphasizes the importance of experiential learning with the quote, “We learn who we are in practice, not in theory.” This statement underscores the idea that to truly understand what you want to do in life, you must engage in various experiences and activities. By actively participating and exploring different fields, individuals can discover their interests and strengths, ultimately guiding them toward their ideal career paths. I took this principle to heart and tried different roles within the financial industry through short summer internships.
After my summer internship at a hedge fund, I realized that an investment management firm is a good fit for me and decided to stay with the firm long-term.
During this internship, I had the opportunity to immerse myself in a dynamic and intellectually stimulating environment that significantly enhanced my understanding of finance and investment strategies. One of the most compelling aspects of my internship was the focus on value investing. I learned to analyze companies based on their intrinsic value rather than market trends. This approach encouraged me to think critically about financial statements, competitive advantages, and market positioning of companies. The rigorous analysis required honed my analytical skills and gave me a deeper appreciation for the art and science of investing.
What would you tell your younger you regarding building your current career?
If I could speak to my younger self, I would say: "Take your time figuring out what you truly want to do with your life. Your occupation will occupy a significant part of your time, so it's worth investing the effort to find something that excites and fulfills you. Don’t rush into decisions; explore different paths, interests, and passions. Surround yourself with people who inspire you and encourage your journey of discovery. Remember, it’s okay to change direction—what matters is finding work that resonates with you."
Final thoughts & tips
In conclusion, as you embark on a career in investment management, particularly in value investing, remember that integrity is at the heart of what we do. This field is not just about identifying undervalued companies; it’s about making principled decisions that reflect a commitment to transparency and ethics. Take your time to develop a strong foundation based on trust, both with your clients and within the industry. Embrace the challenges and stay true to your values, as this will ultimately set you apart and foster long-lasting relationships. Value investing is as much about character as it is about financial acumen—commit to integrity, and you will not only achieve success but also earn the respect of those around you. Your future in this industry can be both fulfilling and impactful, so approach it with honesty and passion!
Resources to dig in more
Value Investors Club
This online community allows members to share and discuss investment ideas focused on value. Students can learn from real-world analyses and engage with fellow aspiring investors to refine their skills and understanding of the market.
Investopedia
This comprehensive article provides an overview of value investing, explaining key concepts, strategies, and notable investors like Warren Buffett. It’s a great starting point for understanding the fundamentals and principles of this investment approach.
Berkshire Hathaway Shareholder Letters
Buffett’s annual letters to shareholders are a treasure trove of wisdom. They cover a range of topics, including investment strategy, market outlook, and lessons learned over the years. These letters are highly regarded for their clarity and practical advice.
